Financing An Expedite Truck??

[busop1]

Can anyone tell me basic guidelines that are allowed when financing an expedite truck?? Such as how old can the truck be?? Loan to value ratio?? So forth. I know how bad the economy and expedite industry is right now but I need this information for informed planning for the future perhaps a year from now. Thanks

 

[davekc]

Tough question to answer. New or used will change some of the dynamics.
Many places use manufacturer financing, in house, 3rd party, local/credit union banks, and SBA loans.
Each will have different requirements whether it is collateral, years of experience, or a certain percentage down.
Some confuse a purchase with a lease. Two separate items with one having some benefits over the other depending on your circumstances. Same with TRAC leases and the like.
I would talk to your accountant and or attorney to determine which path is best PRIOR to making your move.
Good luck

 

[moose]

. Same with TRAC leases and the like.

What is a TRAC lease ?



Moose.

 

[davekc]

I could go into the lengthy stuff, but basically a TRAC Lease is a tax lease where the finance company retains the depreciation of the collateral and the customer expenses the monthly payments.

Here is a link from GE Capital with regards to taxes and such
http://www.gecapitalenergy.com/quesa.html#six

 

[moose]

Thanks,
let see if i got you right ,

that's dubbell dipping the IRS ?

so why cant i depreciate the truck , and then wright off the truck payments as business expenses ?



Moose.

 

[davekc]

Because it is a lease in which the finance company owns the vehicle therefore they take the depreciation.

Link from GE Capital for detailed information
http://www.gecapitalenergy.com/quesa.html#six