Have 6 Months OTR...Any financing recommendations?

I'm getting started pretty soon here now with penske. Of course, I have a lot more experience and a lot less expectations out of my truck than you(as long as it sounds good and pass the dyno-screw an apu I will buy that on my own)plus I'm skipping the part about a Truck Note n dem keeping the title an my $$$$. But ryder pretty good also. If I were u, I would just wait a little longer. But I'm not you, and you maybe a diesel mechanic??? Hmmm, this industry require patience and mechanical skill, amongst other things. Can u change a filter? Radiator? Maybe you should keep your cash, an take it easy. Winter maintenance is coming up!

 

I would suggest exercising some patience. It is in your best interest to gain more experience before you start spending your money. Take your time and start looking at trucks. There will always be good deals around for those who are patient. You just got your CDL. If you save $200/week out of each check you can put that with what you already have saved and pay cash for a decent used truck. You won't need to finance anything. Unless you have additional cash set aside for maintenance and a major breakdown, you need to rethink whether this is the best time for you to buy a truck. Running class 8 equipment is expensive. Trucks break down and often without any warning. A turbo or transmission can go at any time. Those repairs will cost thousands, not hundreds to repair. In addition you may also have a big tow bill to pay in order to get the truck to a repair facility. I think it is great that you are ambitious. But, you need to slow down and take a deep breath. There is a reason most lenders want to see more experience before they finance a truck. Most will fail. Most won't have the experience or resources to be successful. You probably don't want to hear it but your chances of success will greatly increase if you wait until you have a year or two experience before buying a truck. You have not really gotten your feet wet. There is much to learn. Do you have any idea what it costs to run a truck? Unless you have owned class 8 trucks you will have no idea what it costs to operate a truck. You need to know your break even point. If not you could be hauling freight for less than it costs to operate your business. When I plan on buying another truck I never get in a hurry. I usually find a good buy being patient. I let others pay top dollar. You can spend the next year or two learning what to look for in a class 8 truck. You could get a composition book or ring binder and keep track of all expenses and repairs that your employer spends on your truck. After a year you should have a much better idea what it costs to operate the truck. If you work for a major carrier, they may spend less on tires and fuel than you would as a single owner operator, but you can at least get an idea of what it takes to run a truck.

 

I'd say if it's an experience issue, go talk to Lone Mountain Truck.

Most places for your experience are going to want to have 25-30% down. Welcome to truck financing.

I just bought mine.

You can also consider working with a local foundation around you for an SBA Microloan.
http://www.sba.gov/sites/default/files/List of Intermediaries Aug 2012.pdf

http://www.sba.gov/content/microloan-program/


They helped me with my down payment for the truck and also start up costs. I was able to retain a lot of my on-hand cash for operating expenses to get going instead of using them for purchasing the truck/licensing.

I finally got financed through www.westbayleasing.com with a 10% buyout after 30 months.

 

I don't know where you live, but there are a number of leasing companies that sometimes have more liberal lending policies than conventional lenders. Freightliner has had several programs under their "Select" program where they will finance you for as little as $999 down. I believe they only required 6 months experience. I have no idea if they still have the program or something else to replace it. Four Points Capital will finance equipment under a lease. Have you checked with your local bank or credit union? Most dealers have sources for financing. Do you know where you will place the truck if you can buy one? Lenders may require a signed lease or "intent to lease letter" from the carrier where you will put the truck. Paccar, Navistar and Chrysler Credit or Mercedes Credit may be able to work with you. They all finance class 8 equipment.

I understand what you are saying about buying newer equipment. However, I have known of some who purchased newer trucks that have spent more time in the shop than running. It is more important to check to see how the truck was maintained than the age. I have found a number of good used trucks and gotten good deals in them. As I stated in an earlier post, you need to have patience when looking for a truck. I still think you would be much better off saving your money and getting a couple of years experience before buying a truck, but you have apparently made up your mind to buy a truck now. So, you can try the companies that I have noted and see what happens. Others may have additional suggestions. Some leasing companies only lease to people or companies that reside within their immediate trade area.

 

Sorry about your back bro. Now I see a little clearer. If you got a good gameplan on paper, mechanical skills, and faith-i believe in you!!! And I'm gonna be the last person to tell you that your plan will fail. Unfortunately, most lenders out here who will finance your experience is gonna charge you a RIDICULOUS interest rate, regardless of your credit. So I guess your choices are- 1) stay leased at a crazy rate for a few more months to get decent financing, or 2) get a crazy rate on your own equipment right now. And although it may seem like a no-brainer, its a tougher decision than ppl think. Have you tried getting a personal loan from the bank? I'm sorry, I don't know bro.

 

If most of these companies only want 1 year exprience, you are half way there. When you rush something you will pay a premium. I have seen interest rates for inexperienced driver to go over 20%.

 

I got a truck from GE Capital without a problem, good credit and 20% down....they didnt ask for anything else.