So ive been throwing around the idea of starting my own outfit and have been doing research on what is needed to start. Ive decided to go and pay a company like DAT or someone else to help me file the necessary paperwork but the big thing is the truck. Would it be a good idea to finance the truck through a bank or ive seen Ritchie Brothers auctions have financing when you buy a truck off of one of their auctions. Any and all business advice is welcome. Thanks in advance
Financing/Start Up Advice
Seeing that you asked for advice -
Do not buy a truck without doing these 3 things -
Oil sample, full mechanical inspection, Rig Dig report. I'd also prefer a dyno and an ECM download.
Banks often will not finance - trucking is classified as 'high risk', our first two loans were personally secured before we went with a loan under the business name.
On the finance topic, you stand a much better chance of survival if you buy cash, or a large downpayment.
Wait - before that, chances of success go up, if your initial starting situation is low debt, or your spouse has a decent paying job with benefits that will cover household expenses initially.
Truck? You know me - it's going to be 1990- 2000 year 12.7, N-14 or CAT, owned by a guy who is retiring that has full records on it and has kept it in good shape. Obviously this plan doesn't involve California.
The start up paperwork, I think, is better done yourself - that way you learn how and why, and what to do.
I've watched a guy (that bought my old truck) go from an office cubicle to own authority pulling van - succeed, (actually he knocked it right out of the park), by doing it the right way - to a guy that is still well in the hole 9 months later due to getting the wrong truck.
There's many threads on here of how to do it the right way - most of the ones that involve failure don't continue the story, but there's a few that were honest enough to admit their mistakes.
Research. Lots of it. Capitalization. Correct truck. Business plan.
The journey begins - purchased a truck.
Here's my thread - @double yellow has a good one also - he went own authority, I leased on to a company.
There's others in the O/O section that you may find useful.
Just do your research and be honest with yourself (primarily), and others too - and proceed carefully.
Agreed, an auction truck can work, but you should have $30K set aside for the probable event of it needing major work.
In other words, it better be so cheap, you have to wear a mask when driving it from the auction site.....
A bit off-topic from the OP first thread, but has anyone heard any reviews on Currency Finance for a truck purchase? I've been running through TruckPaper and it seems they are the default agency the website is pushing. Have seen what appears to be a few decent trucks and thinking about trying them out. Thanks in advance!