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For thoes who want out.

ericmoss37

Seasoned Expediter
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Lets say you've had enough and you want out of the business. The only problem is you owe more on your truck then it's worth. Try doing a short sale with the bank and send them a letter of hardship. Tell them that you are going to sell the truck back because the economy is down and your not making enough money. Send in copies of your bank statements and show that you can't afford to pay 50% back to the bank because truck values are way down. Just a thought you could try short selling the truck and walking away.
 

spudhead911

Seasoned Expediter
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I would call the finance company and tell them you can no longer make the payments and tell them you will have to give the truck back to them,it's kind of like a voluntary repo. another way is do a chapter 7 or chapter 11 bankruptcy. I would consult with a lawyer before doing any of the above.
 

ericmoss37

Seasoned Expediter
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It's not my plan. I would sugest this to all fleet owners. Break up your teams and keep the best driver out of that team. Offer the other driver employment when the freight picks up. A solo will do alright in this market maybe 500 to 600 a week. If your a team working for a owner it isll be $250 or $300 a week which is a big difference.
 

spudhead911

Seasoned Expediter
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In your first post you are talking about an o/o with one truck, now you are talking about a fleet owner which is a completley different thing. My post was for a one truck o/o who is looking for a possible way out of his truck payments. Next time please make it clear what you are talking about.
It seems like you had formed your own answer before you posted, so why did you bother to post the question, even though you asked about a single truck owner, not a fleet owner.
 

LDB

Veteran Expediter
Retired Expediter
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You don't want to just give a financed item back. The finance company will sell it for whatever they can get for it and you will owe the balance. If you work out an arrangement with them that is a different matter but just turning it back will usually cost you a lot in the end.
 

Dakota

Veteran Expediter
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I would call the finance company and tell them you can no longer make the payments and tell them you will have to give the truck back to them,it's kind of like a voluntary repo. another way is do a chapter 7 or chapter 11 bankruptcy. I would consult with a lawyer before doing any of the above.

The problem with a voluntary repo is that they will auction the truck off at way below wholesale and then you end up owing the difference, plus a voluntary repo is just as bad as a regular repo on your credit. A short sale is the best if the finance company will go for it, or try to get a personal loan for the difference. You will always be able to sell it for more than a dealer will give you. They buy below wholesale and sell for retail
 

ericmoss37

Seasoned Expediter
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I posted this as a public service. I thought it would help develop ideas on ways to get out if you had to. What made me come up with this is my real estate investor coarse. Many people claim hardship and investors buy the property at a discount price.
 
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