New owner operator, problem with truck/trailer financing

Discussion in 'Ask An Owner Operator' started by TruckerRuss, Jul 31, 2015.

  1. Old Iron

    Old Iron Road Train Member

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    I know nothing about car trailers. But that's the best way to do it. Buy from someone you know.
     
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  3. MOGLAR

    MOGLAR Heavy Load Member

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    The first thing you have to understand is that while a decent FICO score is helpful........getting a commercial loan is an entirely different animal. Buying a car is totally different that buying a truck, trailer or even trying to finance some extra equipment for your truck.

    There are some solid finance companies out there that will allow you to lease or lease/purchase equipment with some money down. The up shot is that your payments are tax deductible. Under no circumstances do a lease purchase that is sponsored by a carrier!!! EVER. There are plenty of lease and lease purchase programs available where you have the title and you control the truck.

    The other aspect you need to consider is to have money for unforeseen problems (breakdowns, tires etc etc). I dont know how much you know about trucking but be sure to know the business first. Merely buying a truck and driving up and down the road does not make one an owner operator. Its a business. I would forgo the trailer for now and get with a company that will allow you to use their trailers. You will have your handful enough with just the truck. (Baby steps). Plus alot less maint to worry about lol. Also insure your own finances are in order when beginning this endeavor. A truck is a multi headed hydra and all the heads must be fed:banghead:
     
  4. TruckerRuss

    TruckerRuss Bobtail Member

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    Thanks for the insight and you're right. I haven't come to my decision to be an owner operator lightly. I have saved and research my tail off all while driving for a good large company that has actually done me right. The way I am wanting to do it is what I think will work best for me and my circumstances. With my brother n law doing the same thing I am for the very small company he is working under about 5 years ago and it has worked out fabulous. The reason I am looking at the particular truck and trailer and industry is because of all the resources I would have by working with him and said small company. Going to talk to my credit union next week and see what we can work out so I can make this move happen.
     
  5. freightwipper

    freightwipper Road Train Member

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    you can get into a new Freightshaker or Volvo for $9000 at lonemountain
     
  6. TruckerRuss

    TruckerRuss Bobtail Member

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    No lone mountain they require electronic logs and that's a know go with this company! Lol
     
  7. icsheeple

    icsheeple Trailing the Herd

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    Buy a truck with cash. Save up $15-25k while your a company driver and buy the truck while your still bringing in those company pay checks. Spend your weekends and off days on home time working on that truck. Redo wiring and hoses yourself. Treat all the rust and familiarize yourself with all the systems. It will pay off big time when you encounter problems OTR. Get a truck at a real good deal as if you were buying it just to flip it for some profit.

    Once you feel that truck is solid from bumper to flaps start your paperwork and when you get close to that day your ready to roll, give company employer notice and finance a trailer.
     
    tommymonza and JPenn Thank this.
  8. icsheeple

    icsheeple Trailing the Herd

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    Exsqueeze me? Uh baking powder? The leased truck requires an ELD??
     
  9. TruckerRuss

    TruckerRuss Bobtail Member

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    I may be wrong but I am almost certain I read somewhere they require elb for insurance reasons. I'll try and find it
     
  10. JPenn

    JPenn Road Train Member

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    I'll second buying the truck cash while still employed elsewhere. Also, I'll add to that, you can occasionally find absolutely awesome deals at auctions, if you've got cash. A coworker of mine recently bought a trailer for $12K at auction, and wound up selling it for $25K with only minimal refurbishment (it didn't really need anything other than a thorough cleaning and grease job).
     
    icsheeple Thanks this.
  11. TruckerRuss

    TruckerRuss Bobtail Member

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    Sorry man I was wrong they don't require elb don't know how I got that missed up but I did anyway not looking for an emissions truck need a pre emission truck, less probLet's and I can actually work on it.
     
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