Business Help

[sectra1]

Because of a family illness we have to leave the business. Our dilemma is selling the truck. It's a 2006 leased to a carrier. This post is not intended to advertize the truck although I know it could be construed that way.

We are finding that our truck seems fairly priced for it's flags. We've presented a 60/40 split. 60 to buyer for fuel, maintenance and repairs. 40 to owner who would cover lease fees. We're struggling to consider the idea of covering half the repairs as sort of a warranty, as it were.

In a perfect scenario we believe the truck could be paid for well within 12 months or sooner depending on motivation. We're offering this option because folks who seem to have the cash are low balling (like half the listing). Yes it might require some sacrifice on the part of buyers but in the end they get not only a truck but they get all the truck revenue and the escrow of the truck.

We're offering to carry the loan because there seems to be enough drivers (couples) who have challenging credit issues. We are not passing judgement. We've been there as well.

The problem is we're getting lots of interest from individuals who do not see this as a business investment. Our thinking is simple minded: if you purchase a used car you pay for the expenses associated with the business you conduct with that vehicle whether it's personal or professional. But standard responses seem to be that a 60/40 split always means the "owner" (even though we're sellers) always cover these expenses.

Is this post okay in this forum? Any feedback for us? What are we missing? I know we're leaving lots of details out but we don't want to waste anymore time if this post gets removed even though we're not trying to sell it in this post.

 

[usafk9]

I sent you an email.

 

[CharlesD]

If you're selling the truck, are you still insisting that it stay leased to the same carrier? What if someone would want to buy it and take it elsewhere?

 

[Dynamite 1]

I sent you a PM also !!!!!!!!!!!

 

[sectra1]

If you're selling the truck, are you still insisting that it stay leased to the same carrier? What if someone would want to buy it and take it elsewhere?

Well, we've never been in a situation like this but here are some initial thoughts.

Speaking for myself, a seller might be more comfortable staying with their carrier because of familiarty and a current relationship. By letting the truck go to another carrier the seller might not be as comfortable. He/she would have to familiarize themselves with that carrier. The seller's comfort zone might dictate staying with her/his carrier because they can hang on to the settlements which gives them a bit more control with respect to a regular payment.

Secondly if a fleet owner from another carrier approached the seller and wanted to meet the seller's terms then that offer would have to be seriously considered - particularly if the buyer was an established fleet owner with two or more trucks, and have proven they have the experience to meet the seller's expectations.

 

[sectra1]

Thank you for the notices when you send me a PM. You don't really need to post that you've sent a PM. I'm checking it frequently.

 

[CharlesD]

Well, we've never been in a situation like this but here are some initial thoughts.

Speaking for myself, a seller might be more comfortable staying with their carrier because of familiarty and a current relationship. By letting the truck go to another carrier the seller might not be as comfortable. He/she would have to familiarize themselves with that carrier. The seller's comfort zone might dictate staying with her/his carrier because they can hang on to the settlements which gives them a bit more control with respect to a regular payment.

Secondly if a fleet owner from another carrier approached the seller and wanted to meet the seller's terms then that offer would have to be seriously considered - particularly if the buyer was an established fleet owner with two or more trucks, and have proven they have the experience to meet the seller's expectations.

I was just wondering. We get calls from time to time from people who are company drivers wanting to get into a straight and people often ask me if I have a lead on any available trucks. I'm always keeping my eyes open.

 

[Chris@Doms]

Why not just keep the truck, find drivers, in time is their a buyout on this lease? It'll be yours? It'll turn into income with the only work you'll endure is scheduling upkeep and keeping a stable driver.

 

[ATeam]

You are thinking a lot about what your "buyer" should think, expect, do and see. That opens you up to the predator/parasite drivers out there who target people like you. They are better at the game than you and, no, you will not see them coming.

Masters of exploiting the seller's or fleet owner's wishful thinking, they will tell you what you want to hear to get started. Then they run the truck into the ground, sometimes neglecting even oil changes. They will run the truck for as long as you let them and, if they return it at all, return it in such bad condition that you will wish you had never let that person into the truck in the first place.

The business opportunity you want them to see -- and that they will cheerfully tell you they are grateful for -- is in fact an open invitation for a loser street person with poor credit to camp out in your truck for a year and extract what money he can by running it until it dies and then sticking you with the then junker truck. All the while, this same driver or team will be on the lookout for the next person like you who presents such an opportunity.

While you see it as a business opportunity, you are actually presenting the gift-wrapped opportunity for a parasite to camp out your truck and make some money by acting totally irresponsible; knowing he will get a free ride because, in your circumstances, you do not have the resources or expertise to prosecute or otherwise punish.

Even if you have a iron-clad contract, it is meaningless if your "business person" trashes the truck and walks away without a care. A contract that cannot be enforced provides no protection at all.

If you truly need to get out of the business, then get out clean. Sell the truck and be done with it. If that means taking a loss, so be it. Often, it is better to cut your losses and start freish than it is to try make a silk purse out of a sow's ear.

 

[davekc]

In many cases here on EO we have seen this type of thing over the years. Folks are forced into this type of scenario when they try to move a truck on what is owed or a self imposed value verses what it may be really worth. Not saying that is the case here, but it does have a lot of those "tell tale" signs.
The other item that gets neglected is many never calculate the capital gains tax on this type of sale. Something one doesn't want to overlook.

 

[sectra1]

You are thinking a lot about what your "buyer" should think, expect, do and see. That opens you up to the predator/parasite drivers out there who target people like you. They are better at the game than you and, no, you will not see them coming.

Thank you for the feedback. Your post is a real eye opener and our dilemma certainly warrants a more prudent approach. If circumstances were different for us we would hope to be in a better position to hang on to the truck and cash it out. I suspect all fleet owners run into this predatory type of behavior, even if teams have been vetted by a carrier. If you are a praying man, I hope you will offer up a few for us. That's not an excuse for making unwise decisions but it's where we are.

Couple more thoughts. Last winter my wife was in and out of the hospital for three months. Yes, we we did not have contingencies in place for dealing with the crisis. It was financially devastating - it's taken a toll on us in every imaginable way. We don't know how much time she has. They say now it's stage 4. So you could say we're easy prey. There is some desperation. We truly wish the circumstances were different.

I hope that those of you who read this will learn from the experience shared here. Don't take anything for granted. Prepare yourself for the worst case scenario and that includes having a plan in place for dealing with fallout.

The other item that gets neglected is many never calculate the capital gains tax on this type of sale. Something one doesn't want to overlook.

Thank you for this feedback, davekc.

 

[Casper0418]

The business opportunity you want them to see -- and that they will cheerfully tell you they are grateful for -- is in fact an open invitation for a loser street person with poor credit to camp out in your truck for a year and extract what money he can by running it until it dies and then sticking you with the then junker truck. All the while, this same driver or team will be on the lookout for the next person like you who presents such an opportunity.

While you see it as a business opportunity, you are actually presenting the gift-wrapped opportunity for a parasite to camp out your truck and make some money by acting totally irresponsible; knowing he will get a free ride because, in your circumstances, you do not have the resources or expertise to prosecute or otherwise punish.


So how does someone who wants to become a fleet owner avoid this nightmare scenario? Is there a process in place/use that helps mitigate this risk?

 

[Daffyduck528]

I see being a fleet owner and a self-financed seller as very different. The proposed situation puts the upkeep in the hands of the buyer and it happens to be on a couple that don't have the financial resources to protect their investment. As a fleet owner, If someone drives for me they make a smaller percentage and I cover the expenses. If they get reckless I cut off the fuel card. If need be I drive to where they dumped my truck and get it back and refurb it and move on. It doesn't sound like this scenario would allow for this to happen. I'm also uber picky on who I let drive for me. When your in desperate situations you tend to let that cloud your judgement.

I wish I had a thought or some advise for the situation at hand but I don't know of anything. Maybe try to reach out to a company like Expediter Services and see if they have any resources to pull from to help get your truck sold.