Credit Card Center Advertiser Disclosure†
11-28-2012 09:41 AM
I personally would love to answer this one for you, but alas, I have no idea. But by posting this maybe I can bump you back up to the top so someone else can chime in.
11-29-2012 11:54 AM
11-29-2012 12:00 PM
12-09-2012 06:23 PM
Buying a truck (assuming sleeper for otr) is not as easy as it once was.
Leasing is an option but also not as easy as once was. Leasing also has its downfalls as some companies will not accept lease trucks to haul their freight unless you leased truck through them.
A very good friend of mine went through this process of buying a new truck about a year and a half ago. His credit scores are around 770. He was putting down 20% and still wasnt enough for approval. I am not real sure what the issues were for being denied as I did not understand the trucking industry. I did loan him under contractual terms 35k to make his down payment reach 50% and he was approved. He presently is doing very well for himself even with the economy slump. He has paid me back in full with-in 10 months, way earlier then he had to. He works his tail off every week and spends numerous weeks on the road before coming home.
The only suggestion I can offer to start off is what he was going to do if 50% down payment was not enough to be approved. Find a decent buy here pay here lot that sells sleeper trucks and start from there. If I remember correctly they do have a few requirements to purchase also but much easier for approval. Or you can buy a good used truck from someone selling there truck if you have the funds available.
Buying the truck out right would eliminate any payments. Leasing the truck would be having payments until lease end and not owning anything. There are a few lease options that give you option to buy for dollar when lease is ended but monthly payments are much higher. Buying the truck has its tax right offs but limited to depreciation. Leasing a truck gives you tax right offs on what you pay on the lease. Buying the truck gives you unlimited miles. Leasing the truck has mileage limits unless pay additional for unlimited miles. Buying the truck has maintenance and repairs but some cosmetic repairs you would not have to do such as a torn seat as an examle. Leasing a truck you will be responsible for all repairs no matter how minor and all maintenance done on schedule.
This is not all inclusive for the pros and cons, just an idea of the differences. Things may have changed some since then maybe for the better and possibly for the worse.
Being a truck driver is hard work that many will never understand. I wish you the best and good luck with your decision process.
12-09-2012 09:56 PM
Great stuff from JM-AM.
anyone here in the forums a trucker that has purcheased a truck from a dealer?
What can you tell us about the industry? I understand that truck drivers can make very good money especially if they can purchase their own truck. Can you fill us in on any of that?
12-10-2012 06:21 AM
yes there is, there are quite a few independents out there. However since the 08 financial crash, i would not want to be one of them as the industry is so fickle and getting so regulated that it is just easier in the long run to be leased on to a company.
12-10-2012 06:38 AM
Very informative... And yes I can see whereby you would need at least fifty percent down just to keep the payments down. Especially in cases of sitting for a week without a paycheck. I do know that trucking is not what it used to be especially the pay. There are so many rules and regulations out there its amazing any of the truckers make it out there. With all the cities and towns to go after a semi for any little thing to fill their coffers.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.