Where do you go for truck financing?
- Thread starter Lawrence
- Start date
tenntrucker
Expert Expediter
Went the old fashion way on the one I'm in now, 100% down with no monthly payments.
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moose
Veteran Expediter
* for money down, i'm tapping into my investment account.
i take a low interest loan, for 20% of the truck value.
that loan needs to match the investment account money management rules .
* for the rest i go to the dealer.
i found the dealer loans to have better terms then anything else in the market.
doing so allow me to have a business plan, before making the investment.
all payment are auto deduction from the business accounts.
i will never pay cash for equipment.
i take a low interest loan, for 20% of the truck value.
that loan needs to match the investment account money management rules .
* for the rest i go to the dealer.
i found the dealer loans to have better terms then anything else in the market.
doing so allow me to have a business plan, before making the investment.
all payment are auto deduction from the business accounts.
i will never pay cash for equipment.
D Team Brothers
Expert Expediter
Moose, you say you would never pay cash for a veh. Have you thought about this business plan: If one was lucky enough to have money sitting in an investment, with the economy the way it is ay might be earning 1%, 2-3-4-or maybe 5. That is if you haven't lost most of it already. So you set up your own finance plan/schedule for the new truck. Say 5 years at 13% and you pay cash then begin paying yourself (not the bank) a monthly check getting your investment fully back at a rate you cannot find in the marketplace. Plus you not only get to depreciate the new equipment, you get tax advantages under investing in new equipment. All legal! What a great country this is! JMO, Jack
First truck was seller-financed, acquired through an ad we placed here on EO. Put the last $500 to our name down, one year note, paid it off in 5 months, 27 days. $34k purchase. Rather proud we paid it off so quickly, but risky to be sure. I wouldn't advocate anyone else doing with zero reserves to start.
Second truck was a repo-ed truck from Bulldog. We put 10% down, 5 year note through a bank that Bulldog arranged. Should be paid off 3 years, 3 months early. We knew we overpaid (slightly), and that the truck would have warts. However, the truck came with an aftermarket warranty, that has definitely paid for itself. We knew the truck had/would have issues when we bought it. We started this purchase with $25k in reserves, earned by the paid-for previous truck. Those reserves have served us well.
I should note that we went both routes because Myrian and I lost almost everything at the start of this 'recession. We knew we were in the business to stay, and knew we needed to regain credit worthiness to someday buy other equipment. We've spent the last 3 years eating in the truck (we eat out maybe once every 6 weeks/2 months), working hard and smart, and paying off our old debts. We have exactly 4 debts left, will be 3 by the end of December, and two of those three are the truck and the house. I,ve said before that I like shiny news things, but am having a real hard time reconciling that level of debt that comes with a new truck. If the financial crap can hit the fan, it probably will. We're living proof.
And yes, cash definitely is king.
Envision zero debt.
Second truck was a repo-ed truck from Bulldog. We put 10% down, 5 year note through a bank that Bulldog arranged. Should be paid off 3 years, 3 months early. We knew we overpaid (slightly), and that the truck would have warts. However, the truck came with an aftermarket warranty, that has definitely paid for itself. We knew the truck had/would have issues when we bought it. We started this purchase with $25k in reserves, earned by the paid-for previous truck. Those reserves have served us well.
I should note that we went both routes because Myrian and I lost almost everything at the start of this 'recession. We knew we were in the business to stay, and knew we needed to regain credit worthiness to someday buy other equipment. We've spent the last 3 years eating in the truck (we eat out maybe once every 6 weeks/2 months), working hard and smart, and paying off our old debts. We have exactly 4 debts left, will be 3 by the end of December, and two of those three are the truck and the house. I,ve said before that I like shiny news things, but am having a real hard time reconciling that level of debt that comes with a new truck. If the financial crap can hit the fan, it probably will. We're living proof.
And yes, cash definitely is king.
Envision zero debt.
purgoose10
Veteran Expediter
I finance C/vans with bank. Just bought a 2010 Pete through GE.
Doggie Daddy
Veteran Expediter
DTF Daimler Truck Financial had the best rate that we could find.
moose
Veteran Expediter
In my book, 'Cash flow, Cash reserves & Credit line are kings'
interesting read here :
How to Secure Commercial Financing: 10 Tips for Smart Borrowers - Truckinginfo.com
for me, each truck is a stands alone business.
i use someone's else money for the full financed & collect the rewards along the way.
once the business reached it's lifespan, i'll just give the truck away. i will never place my own hard earned money, to expend my business.
D T B, Jack.
good analysis.
a few months ago i wanted to start a post : "Expediting as an Investment"
at that time i was approached by 3 investors outside of the trucking industry, they all said the same, trucking is a very solid investment. unfortunately for me, at the time, i was not looking to expend my business.
i know for a fact that one of them ended up investing 53,000$ on a start up.(if all goe's well the online store will be open in a few days). i can't forgive my self. what a miss opportunity.
I put mine on my line of credit. I think it's prime plus 3%.