Interest Rates

Discussion in 'Trucker Taxes and Truck Financing' started by BoyWander, Nov 1, 2016.

  1. HalpinUout

    HalpinUout Road Train Member

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    Your saying money put into a home for improvements, is money you'll never get back?
     
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  2. United Expedited

    United Expedited Bobtail Member

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    New equipment should be around 6%
     
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  3. Crowtrans

    Crowtrans Bobtail Member

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    I have good credit and looking into a new flatbed and got hit with an interest rate of 24.9% at 48 months and 18% at 60 months.This is crazy, i have auto loans for more money at less than 3%. Are equipment loans really that much of a risk? Or is it the difference in the amount of equipment sold to the amount of cars sold?
     
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  4. TallJoe

    TallJoe Road Train Member

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    My first buy was at 15% trough Transport Funding - popular yet not beloved. My credit at that point was somehow average (maybe 650). The fact that I gave them a hefty down payment did not help much. Anyhow, The interests I saw were killing me. I could not stand the fact that on a 33K loan over a year they squeezed me for over $6000 in interests + they were dictating me what insurance deductible I could have and a few other annoying things. I simply got pissed at some pint and sent them a check for the reminder flushing my business account almost down to nothing. I was under an umbrella of a carrier that was giving me fuel money and a potential assist in case of a break down. A few good credit cards were my safety net too. But even an excellent credit score (750 and more) would not guarantee you'd get anything below 10% if this is your first buy.
     
  5. TallJoe

    TallJoe Road Train Member

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    #######! I am out of school for 20 years, yet I still owe them for over 30K. Deferments, Deferments and now just $200 a month. Maybe I'll pay it off before I am dead. The dumbest thing I did in my entire life -taking the school loan.
     
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  6. BoyWander

    BoyWander Road Train Member

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    So, time for an update. First of all, thanks for all the replies.

    I went ahead and finally called a lender broker, who mostly deals in farm equipment but also does OTR owner operators. The guy I spoke with, very friendly, said in his experience, someone in my situation would probably get offers of such and such, with x % down payment, so I went ahead and filled out the application and financial statement.

    I'll have to wait until Monday or Tuesday for them to get back with me, but he said my chances are pretty good of a 10% down payment, interest possibly just under 14%, but he also said it's likely my financing limit will be $50k.

    I also went and got a credit card with a high limit that has no interest on purchases for 21 months. I won't use that to buy the down payment, the credit card company would probably block the charge as a possible fraudulent purchase, but I could purchase other things if I need to, like maintenance and personal stuff so that I wouldn't deplete all the cash I have in the bank.

    Thanks again for all the replies.
     
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  7. tscottme

    tscottme Road Train Member

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    Most home improvements increase your house re-sell value less than they cost. You make the improvements to be more comfortable or preserve the house. If you stay long enough you might recover your cost plus inflation.
     
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  8. HalpinUout

    HalpinUout Road Train Member

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    Oct 2, 2011
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    I'm well aware. My post was quoting the bs of another post.
     
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  9. gokiddogo

    gokiddogo Road Train Member

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    Ontario Canada
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    If you own your house you can likely use your home equity line of credit .... usually is about the best rate you can get...

    I keep 2 credit cards. A MC and a visa. The MC is for day to day things and has a relatively small limit. Visa has a 30,000 limit in case of an OH-S! moment.

    I am buying a new reefer and my rate is 4.7%.
    On my first truck in 2011 with no business history I was paying 6.5% on I think an 85,000 loan.
     
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  10. BoyWander

    BoyWander Road Train Member

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    Wow...6.5% with and 85k with no business history, how did you do that?

    The finance broker I called came back with a limit of $35-40k and likely 14% and my credit is really good, I just don't have a whole lot of credit, and I don't own a house. Maybe if you put your house up for collateral, but I wouldn't do that even if I did own a house.
     
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