It is going to be difficult to get into a truck without something as a down payment. I would suggest not getting a payment over $1,000/month. You may not have a problem making a $1,500 payment, but when times get lean it can be stressful having to worry about making payments. Most carriers that you lease to will require bobtail and occupational accident insurance. Some will deduct that from your settlements, others may want you to pay for the first month upfront. You may want a Peterbilt to start, but that isn't a really a smart move just getting into the business. There are some good Freightliners and Internationals that will give you many years of service for less than you could buy a comparable Peterbilt. I have always believed that it is better to start with low overhead and then move up to something else if that is what you want. Keep in mind that you will likely make more money with a Freightliner or International due to the lower payments/cost and better fuel economy. International has corporate stores in various locations around the country. They will often sell trucks for less than an independent dealer and have other brands than International. Freightliner seems to always have a program through their select trucks where you can get into a truck for as little as $999 down. You will pay a premium for one of those trucks. I have seen about a $20,000 higher price tag on them than one could have purchased outside of the program. I have no idea of their requirements or if they are still doing them. I would expect a high interest rate. I have heard of rates of over 19%.

There are leasing companies that will do a lease/purchase. It is a lease where you actually own the truck at the end of the lease. It is totally different that what you would experience going through a carrier. You will still usually need at least the first months payment and probably the first and last. No matter where you go to buy a truck you will likely need money for a down payment. With no credit you would be considered a possible high risk so they may require more down or perhaps a co-signer.

If I were you, I would sit down and put some goals down on paper. Then, I would take an inventory of what your assets are and make a plan to reach your goal. If you have been driving for 6 years then you have something of a track record. There are primarily three things that lenders look for when they finance a truck. Credit, years of experience and down payment. You may find a dealer who will work with you, but you should expect to have a down payment. I would expect a minimum of 10% down. You should be able to command a decent wage from most carriers as long as your work history and mvr are clean and you have not jumped around too much with other carriers. I would first find a carrier where I could make decent money and start putting money back out of every paycheck toward purchasing a truck. As I was putting money back, I would work to establish credit. A secured credit card would be a good start. You might be surprised at how quickly you can establish a good credit history, as long as there are no negatives on your credit. Rather than jumping in and paying whatever anyone asks you would be in a much better negotiating position with some credit and a good down payment. If you only put $100/week back you would be able to save over $5,000 in only 1 year. If you double that amount then you are in a much better position to negotiate a good rate due to the lower risk from the lender. It is always most difficult to finance your first truck. If you jump in without any money you are taking a very high risk for failure. I would not get too much in love with any brand. I like the look of a Peterbilt and enjoyed it when I owned one. But, it won't make you any more money than something less costly. If you are determined to make your first truck a Peterbilt, then you should count on saving more money for your down stroke since they usually cost more than something comparable in another brand.

 

Just the man I was waiting for a weigh-in from, thanks G-Man. I see you still have the avatar that children's nightmares are made of. *LOL*

Anyhow, I have been looking as well as straight up leasing companies. Does anyone have any experience with or heard anything about Lone Mountain Truck Leasing? From what I've seen they are straight up no b.s. lease company without tricks or balloon payments to buy truck at the end of a lease term, which is what I'm looking for should I have to go the lease route.

While I understand what you are saying about being in love with any one brand, the way I'm looking at it is whatever I buy, or lease purchase is what I'm going to own and live in. Yes, a Freightliner or International will make the same money...but I DO want what I want. As much as I love Peterbilts, I have to be honest and say for fuel economy and ease of living in reasons my first choice would have to be a Volvo 780. I've been driving one for a while now, and I've never driven a more quieter, or comfortable truck. I also love how it has a workstation in it. It definitely beats doing paperwork, or using the laptop on layovers on the steering wheel or bed. I've spent a long time doing it that way and I'm over it. I'm also thinking about resale value down the road, I don't want to shell out big bucks for a Freightliner and get a quarter of that out of it down the road. Thanks for your input G-Man...feel free to add more upon reading this.

 

I still have the same avatar. I just haven't found anything that I really like so I have kept the original avatar.

I have heard of Lone Mountain, but don't know anything about them. There are a number of leasing companies out there that might work for you. One of the largest is 4 points capital. They are somewhere around San Diego, CA, I believe. Another that I have heard of is Kennesaw Leasing out of Kennesaw, GA (Atlanta area). One more that comes to mind is Smokey Mountain Leasing which is near Knoxville, TN. You can also google truck or equipment leasing companies and probably come up with a lot more names. Some leasing companies only do leases regionally. Paccar has their Pac Lease, but I don't recall whether that is just for new trucks or used. You may want to check with some truck dealers and see if they might be able to point you in the direction of a decent leasing company. Some have their pets. There is really little difference in leasing and buying other than how the deal is structured. You may pay more leasing than buying but there are some tax advantages to leasing. In any case, whether you lease from a leasing company or buy you will own the equipment after all payments have been made.

I do understand what you mean about the ride and quiet of a Volvo. I haven't driven a 780, but have driven several other models. Volvo has the best ride and less road noise of any other brand that I have driven.

By the way, no truck is going to have much residual value these days. They will hold their value more than most other brands, but you will also pay much more for them. I understand what you are saying about the Pete's. I felt the same as you at one time. I thought that there was nothing like a Peterbilt. While I still like them, I have found that it makes more business sense to drive something else. I still have a couple of friends who thing that there is no truck other than a Peterbilt. Both feel that they would rather pay more for fuel and drive the Pete instead of put more money in their pocket. Like I said, I felt the same way some years ago. In any case, you are the one who will need to make the payments. On the other hand, if you like a Volvo perhaps you should consider buying one. They get decent fuel mileage and are very comfortable. If you must live in a truck you can't find anything better. It is much easier to use a work station than sit in a drivers seat or lie in bed while trying to do paperwork. I believe some of the newer Pete's with the 70" sleepers have work stations.

 

By the way, RoadKing, you may check with some of those leasing companies and see if they have any repo's.

When I am looking for a truck I have a list of things that I simply can't do without and then some things that I would like to have on the truck. It is difficult to find everything you want in a truck unless you order it from the factory. Even then, there will likely be things that you wish you had or didn't have on the truck. If I can find most of what I want in a truck then I will likely buy it. Of course, I look at things a bit differently than you probably do. But, it is good to put down in black and white what you want in your truck and then try to match most of those qualities to available equipment. I would check with lenders to see exactly what they would require. Most dealers have lending sources of their own. Many are regional. One other source many people over look are credit unions. They can often be more lenient when it comes to credit.

 

Road king, I don't mean this as a put down just good advice. Before you get into a lease or anything you need to take a class on finance and money management, then you need to get your personal finances in order before going out on your own. Buying or worse leasing a truck in the financial position your in is a recipe for failure! I know, not in trucking but I do know!

 

I do understand where you are coming from, and do agree to an extent. I don't think one needs a class on finance or money management to be successful in this. I also don't think it's a fair assumption that my finances AREN'T in order or that I don't know how to manage money. I do not have capital, that is correct. As I said at the beginning of my post, I just started back over the road.

 

I totally agree! I don't own my own truck but over the years have started/owned several business'. First of, no one else out there on the road will give two craps what you drive. I understand the appeal of driving a nice looking Pete but they are more expensive. Get profitable first which means consider fuel economy, payments, insurance rates, etc.

I've seen too many people start a business of one kind or another and the excitement gets the best of a lot of them. They have a stack of money to invest in their new business and then go out and spend it all on brand new office furniture, nice shiny equipment, and other stuff only to sell all in a year or two later when they shut the business down - all for pennies on the dollar.

Get profitable first, then, if you can justify it, go get that Pete or whatever you want. Also, when you're putting the pencil to the paper and figuring your expected fuel mileage, I'd suggest padding those numbers 25% or so on the more expensive side - for a little extra breathing room.

Good luck.
L

 

You think being financially chained to your job is going to give you more freedom? Especially in this economy? lol. Good luck with that one.

It sounds like you just don't like the job and are hoping that being an O/O will make you like it. It won't.

 

And he couldn't buy a house even when his income showed he could afford it, but the op thinks he's ready to handle the money end of business? Your gonna do what you want, so be it. Just think twice before you sign for that newer Peterworth. I do wish you the best!

 

The reason I couldn't get approved to buy a home was because of credit (or lack thereof) history, not because I lack the funds. I think some of you guys didn't read the part either where I said while I do love Peterbilts, my first choice because to me it's a wiser decision BUSINESS-WISE would be a Volvo.

Anyhow, I agree with all of you as far as the need to establish credit - that's a given. What I disagreed with was the need for a class on finance or money management. The reason I don't have credit isn't because of irresponsibility, it's because the way I was raised and lived by was...if you can't pay cash for it, you can't afford it and don't need it. I've paid cash for everything I've ever had, and until I tried to get approved for a home loan never tried to use or get credit. Now more than ever I'm finding out (through research and advice from you guys) that credit is very important to secure when it comes to this business.

Rev. said -
"You think being financially chained to your job is going to give you more freedom? Especially in this economy? lol. Good luck with that one.

It sounds like you just don't like the job and are hoping that being an O/O will make you like it. It won't."

There are things I do love about the business, and things like anyone else I could live without. I've done a lot of different things when I was younger, and honestly outside of being gone from my family so much who are my world...I wouldn't trade this trade for ANY of them. I agree with what you said, I do see how once you are an O/O with A LOT MORE responsibilities and mandatory expenses and payments you ARE in fact CHAINED to this job, however with being the big dog there IS more freedom in it than being a company driver. Being an O/O like ANYTHING on this earth, is what you make of it isn't it? If it weren't true, than why would ANYONE become an O/O?