Should You Buy a Truck in 2021?

Discussion in 'Ask An Owner Operator' started by SeanQ, Nov 23, 2021.

  1. Rubber duck kw

    Rubber duck kw Road Train Member

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    You'd be much better off sticking that money in land and find a decent paying job somewhere, either in trucking or something else.
     
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  3. razor1983

    razor1983 Medium Load Member

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    The gold rush is practically over, its all downhill from here on out
     
  4. Natty Bro

    Natty Bro Bobtail Member

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    I say all the negative comments on here don't really understand finance.

    If you have cash, why not buy a truck outright?

    Do you know what a cap rate is? Figure out the cap rate on the truck you want to buy and compare it to a cap rate on a house! You'll have your answer. Landlords/investors think 8 - 10% cap rate on a house is good, but if you think about it, it's horrible when compared to other workable assets. Both a truck and a house are assets: one is passive, one is not--it needs to be worked. But if trucking is your job, and you like the job, then it's not work, it's a lifestyle.

    If you plan to live on the road, and you have zero overhead, then you're sitting pretty no matter what happens to the market. The US will not stop relying on Asia for goods and supplies tomorrow, even if Trump voted back in '24, (unless we go to war with China which is highly unlikely).

    You're sitting on cash living in a hotel. Do the math on the truck! Use best and worse case scenarios. Look at cap rates! How fast will you make your principal back? Then profit/loss is more clear.

    Try to buy the newest, lowest miles truck you can find. Anything else is just dragging your cap rate down and distorting your profit/loss.
     
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  5. Midwest Trucker

    Midwest Trucker Road Train Member

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    I understand what your saying but you must also not know the truck market right now. You simply cannot buy a new truck right now. Period. I ordered back in Feb/early March and have only received 1 of the 2 trucks. The trucks I ordered around July for March next year were cancelled. You just can’t get them.

    Trucks that are a couple years old with 300k miles are going for higher prices then brand new ones. It’s getting to the point where it’s no longer feasible. We hadn’t even talked about trailers yet...

    To the OP.... don’t let the money burn a hole in your pocket. What job we’re you doing before? Was it truck driving or not?
     
  6. Natty Bro

    Natty Bro Bobtail Member

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    I agree. I know it's bad. But I just called Freightliner the other day, they said put a deposit down in March, you'll have the trucks in November '22. Whether this is true or not is pending. Anyway, if you can find a truck at a decent price, then jump in! There are still deals out there but it depends on the State.

    If not, then just find a job and drive until truck market stabilizes, but don't be surprised if it takes 4 - 5 years.
     
  7. shooter19802003

    shooter19802003 Road Train Member

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    So....a salesman wanted your money and told you want you wanted to hear inorder to get it.......lol.......OK

    There are long threads in here discussing this very topic. Just like @Midwest Trucker said.....you can't get one......doesn't matter what the saleman says.. folks are getting previously ordered trucks trickling in and others are getting them canceled. Depends where they where on the list.. most common answer now is 2023 for a truck......and who knows how that is going to play out.
     
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  8. Brandonpdx

    Brandonpdx Road Train Member

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    Go buy an old truck? There's ton's of them sitting around half derelict that could be put back into service.
     
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  9. rollin coal

    rollin coal Road Train Member

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    Yep that ship sailed already. The best money was last year. Fuel was super cheap and there was a lot less resistance to negotiating rates upward. Now fuel is expensive, freight volumes are down and there's a lot of pushback if you're asking for more money.
     
  10. Studebaker Hawk

    Studebaker Hawk Road Train Member

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    You need to identify a few more short term and long term goals here before you proceed. Some questions you can ask yourself, answer them here if you are so inclined, or just think about them.

    1. The cash you have now. Are you looking for a return on investment (ROI) on that capital? If that is the case, investing in a depreciating asset like a truck is a negative ROI. If you buy a truck and become an owner operator, either leased or your own numbers, you are essentially buying yourself a job. Work for someone else instead, let them take the financial hit.

    2. Is some or all of that cash going to be earmarked for another place to live? If you don't reinvest that money in another house within a period of time, you will wind up paying capital gains some portion of it. . A tax/investment professional should be consulted on that, and/or if you decide to invest in something other than a truck.

    3. You didn't mention how much experience you have. Just having the CDL is almost meaningless unless you have some idea of what type of trucking operation you want to get involved in, where it might be , and whether you qualify.

    Nothing has to be decided today. Don't go strolling around any truck lots and let some slick salesman talk you into something.
    I am a big Dave Ramsey fan. He has advice that would go a long way in this instance.
    Start with his hallmark book, which has been around for years ( followed the plan 20 years ago and it is bearing fruit bigtime)
    The Total Money Makeover. You are in the catbird seat right now. Don't blow it...
    A Proven Plan for Financial Success | RamseySolutions.com
     
  11. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    Exactly! But hey, I don't know Finance. I'm just a dumb Driver.
     
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