Waiting on New Trucks thread.

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And if at half the number of trucks I don't pay over 200K with APU's I really doubt they were paying anywhere near 260K

 

I don’t know. Must be a reason.

 

Maybe they plan to pick up new units at auction for their next company at a lower cost lol

 

lol that's a good one

 

I don't know the real reason, but I can speculate.

First thing that comes to mind is to ensure the company is fully dead. Liquidation is most often better for the owners than being 'saved' by deep pockets or allowing the debtors to take possession. Plus cash in hand is easy to count/value. Equipment bought with financed money? Much harder to value and forces liquidation before distribution. For example, say a trucking company has a yard worth $1,000,000; equipment worth $2,500,000; $500,000 in cash/equivalents and $2,000,000 in debt. If everything gets liquidated at fair market value, the owners walk away with $2,000,000. If the company attempts to shuts down, the debtors can argue to take possession, sell the business to a competitor for $3,000,000, pocket their $2 million plus 'administrative costs' and the owners are left with $500k. Please see Jack Cooper's bid for Yellow for a real word case study. However if the company buys a bunch of new equipment, making the debt service unmanageable and the debt to asset ratio unpalatable, liquidation happens and the owners end up with $1 million.

Second thought is kick backs - company buys a bunch of new trucks at the top end of fair market value and the dealer gives a percentage back under the table. Even 'better' is making enough real purchases to hid the 'paper transactions' and just pocket the cash.

Next up is it's a Hail Mary to force one more year. Executives know the business is going under - they've cut all the costs they can but it's not enough and they can see the writing on the wall. If they buy a bunch of new trucks they might be able to show enough of a return or otherwise bluff them into the next fiscal year - guaranteeing their salary.

 

Ha never thought of that. Very well could be a good plan to be honest.

 

Guess I better start paying better attention to the used market, 25 year old kid come across the double yellow yesterday and pretty much wiped the tandems out from under my trailer, probably look for a mid to late teens 53 or 54’ Great Dane reefer with a TK and a spread

 

I hope everyone is ok.

 

He was moving around and taken by ambulance to a local hospital then got a helicopter ride to a bigger one a little further away, good friend is a paramedic in town and said that’s usually just precautionary, and if it was really bad they would of landed in the road, my stress level was through the roof was about all I had,

I was 4.2 miles from the yard, so Atleast I was able to limp it home,fun part of swinging freight with a hand jack and a bob cat starts now