First Truck

So one needs to go out and spend 100000+ so one does not pay Uncle Sam say 25 or 30? It's really not much different than your retirement investment guru telling you not to pay off your house. To use it as a tax deduction. Ok so I will pay 12000 on my house this year so I don't pay the govt. 3000. Just saying

 

Not exactly what was being said, Go ahead and pay your profits away on that debt free business, Good Luck.

 

Whoa now--Lets not put words in my mouth--what I suggested is to discuss your biz plan and finances w/someone WHO knows how this business really works from a financial aspect--what/how you do is entirely up to YOU and I have NO dog in this hunt---just a friendly suggestion from someone who has been at it all his life-- and WHAT I CAN SAY FOR SURE is if any of us had the background and education in finance and taxes you really need to be profitable in today's market--we wouldn't be out trucking---LOL
My finance woman(3d Gen acct) has earned her money from me 10x over
Jus Sayin

 

Haha I want an '06 so I can't go to Cali. I bloody hate that mess. LA drives me crazy and the 55mph speed limit can potentially really hit you in the wallet at the tune of $500-$1200 for five over. As far as truck goes. I reckon it's a matter of preference. If it was up to me I would go with a KW T660.

 

I like the idea of your starting out paying cash for your truck. That is what I did. I am glad that I started out without any debt. I am not sure you will find what you are looking for in that price range if you want to get a Kenworth. There are good buys around, but you usually need to seek them out. You could buy a Freightliner or International in your price range and in the year you are wanting. Volvo's can also be found for less than Paccar trucks. I would stay with Cummins or Detroit, if you want a DEF truck. I would not want to go with a brand specific truck due to potential difficulties finding parts and a repair shop that can quickly get you back on the road. I would look at a mid roof or condo if you plan on pulling a van or reefer. I think it may be difficult to find a truck with an APU that works with your budget. Then again, I have found some good bargains over the years. Take your time and you will more easily find what you are seeking.

You might check with Knight Transportation and some of the fleets. Covenant and others sell their own trucks. Schneider is another source that I would check. I would not get too fixated on any specific brand starting out. Find one that best suits your needs and then go from there. You can always save your money and buy what you really want later. With your budget, you are most likely going to need to buy a higher mileage truck. High mileage alone is not a reason to not buy a truck. You might find a good high mileage truck that has had major work, such as an inframe, that would be a very good buy for you.

 

Not trying to be difficult here all I was pointing out was the fact that only a small percentage of capital is able to be written off on taxes. Sure no one likes paying the govt to much but you will pay a lot more to a finance company trying to buy down a loan on a new truck. You can at least save the 3-1200 hundred a week for things that may go wrong with the truck and other operating cost you may run into. Just starting out you gonna have cost issues so pile up as much overhead as you can and then at the end of the tax season pay the appropriate amount and you will still come out ahead. But don't mix personal bills and operating bills in the same nest. Keep that separate. That will show your profit loss margin. Then you will know what your business is making and at that time if you feel you can afford a more expensive truck then go for it. But only do it for the business success and not to only have a deduction. My 2 cents.

 

If i had $30,000 i would use $15,000 as a down payment and get myself a nice newer truck with a #### good warranty on it. The benefits of doing this
is both to get the newer truck with a good warranty and for credit purpose too. With a newer truck -new or used 2011 and up the compliance the goverment is asking is already achieved in these trucks. The payments will be where you will be able to still afford to live and afford. The benefits of making payments are for building your credit. The more ontime payments and the steadier payments made say on the 1st of each month will go a long way in the future. The other $15,000 i would put into a Business account for your truck. Use the Business account for all your trucking needs, Fuel purchase, upkeep, maintenance, repairs. The business account will help when it comes time to do taxes.