| The U.S. credit market has seen some dramatic | | | | start-up company whose owner has a Trans Union |
| changes mainly pertaining to the home mortgages. | | | | score of just 600. Most places that will finance a 600 |
| Recently, there has been a trickle-down effect that | | | | credit score that is also a start-up company will ask |
| emerged in other credit markets. It has become | | | | for 20% - 50% into the truck (advance payments, doc |
| increasingly challenging to for owner-operator truckers | | | | fees and a down payment). If your financing a |
| that don't have much time in business (less than two - | | | | moderate truck that costs $26,000, that can mean that |
| three years) to get financing to buy a used truck. Let's | | | | you'd need to come up with anywhere from $5,000 to |
| face it, when you are new in business the used truck | | | | $13,000. That's a lot of money. If you qualify for the |
| often times is the best option. | | | | same truck from an off-lease program, you can get |
| A new rig can easily cost from $125,000 to $175,000. | | | | into it with as little as one payment (range is roughly |
| That's more than a house in some areas. For that | | | | $600-$700 on aforementioned example) due up front. |
| reason alone, the used truck is an excellent option. The | | | | Wow! |
| problem lately is that financing for these types of | | | | Here's what to expect if you find an off-lease truck |
| vehicles is getting tougher and tougher to get. The | | | | that suits your needs: Pick the truck, fill out the |
| financing is still there, but many places may not have | | | | application, get a same day approval (or next day |
| the most favorable rates and/or will want a substantial | | | | approval depending on the time of day), get docs |
| dollar amount up front. For example, many places will | | | | delivered & then signed and notarized. The only |
| finance a new owner-operator with moderate credit, | | | | other thing to consider is how to put the truck on hold |
| but will ask for 3 payments up front and a doc fee as | | | | so that nobody else buys it out from under you (these |
| high as $1,500.00. This can be as much as $5,000 up | | | | trucks go really fast due to the eased credit |
| front for a truck that cost $25,000 or so. The good | | | | requirements). The truck can be held by wiring 10% of |
| news is this: there are special finance programs | | | | the purchase price OR by getting the executed |
| designed to help get the newer owner-operator | | | | finance documents & the 1st payment to us. |
| truckers on the road. | | | | Wiring the 10% is the quickest & best way to |
| One excellent way to situate yourself to obtain this | | | | ensure that nobody else drives your truck off the lot. If |
| special financing is to buy off-lease trucks. These are | | | | you wire the 10% and want to choose the one |
| trucks that were either repossessed or turned back in | | | | payment due up front option, that's o.k. Once you get |
| at the end of the lease. Don't expect prices any lower | | | | all your ducks in a row (sign/notarize docs, insurance, |
| than fair market value, but do expect excellent finance | | | | & any other formalities), the difference of the 10% |
| options. What is meant by excellent finance options is | | | | and the 1st payment is refunded to you. |
| this: Easy 1 page application with a 600 or higher Trans | | | | If you are newer in business and need to buy a truck |
| Union score, only 1 payment due up front, bankruptcy | | | | for your long haul (or short haul) business, lower credit |
| & time in business requirements are currently | | | | scores and lower cash reserves does not necessarily |
| being waived, and great monthly payments. | | | | disqualify you from living out your dream. There are |
| Let's look at an example comparing a typical finance | | | | special finance programs available to help get the |
| scenario to an off-lease finance scenario for a | | | | newer owner-operator truckers on the road. |