Hey all, thanks for helping me out on my last thread. This next thread I'm looking into places that deal with ppl who are just starting out. What are my options here and what kinda upfront costs can I be looking at here? also, what kind of information should I bring in, etc? Also, since we are on it, might as well look at options for trailers as well since if I go with my own authority I'll need my own trailer most likely. Any financial info, paperwork, etc. will be appreciated. Overload me with info, lol. thx

 

as soon as you file for your authority, you will be overwhelmed with offers to help you ( for a fee, of course)

 

lol, even though thats obvious, the obvious seems to be the most overlooked. Otherwise, how could they stay in bussiness. ty

 

What kind of equipment are you looking to finance?
What is yout credit rating?Did you finance before any commercial equipment.This really matters.
What do you want to pull?
How much money you have to come down for a down-payment, registration,insurance premium? If you don't have at least 10k in hand,don't even think about anything right now because of this economy.

BOL

 

My rateing is so/so
I've never finaced any commercial equipment b4
I plan to pull any drybox frieght atm, hazmat and non hazmat to keep me running
don't plan on doing it atm, just getting doing the homework ahead of time.
I was thinking 10k would be a good figure (might have to adjust but thats about what i thought it would be)

 

It is difficult to get your first truck financed without at least a couple of years experience and decent credit. Expect to need at least 10-30% down on your equipment. A few years ago I spoke with Paccar at one of the truck shows. I later spoke with someone with Navastar. Both told me that you needed a credit score of at least 650 at that time. They also wanted some driving experience and preferred people who had previous commercial credit experience. I have no idea what their current requirement are but expect that things have probably tightened somewhat. If you need financing you may want to check with your local bank or credit union. Some of the bigger credit unions do truck loans, but may call them something else, like an auto loan.

There are second and third tier lenders who do equipment loans. Be prepared for higher interest rates and less than favorable terms. Your payments could run higher with a quicker payout. A larger down payment may also be required and some may want you to buy their equipment rather than finding your own. There are also equipment leasing companies. I don't plan on financing any more equipment. It is difficult to pay cash starting out, but that is what I did when I first got started.

You will need to pay your 2290 in order to get your base plates and permits. It costs $550 per year and is prorated from July. Your base plates and permits should run somewhere between $1,500-2,200 in most states. My base plates cost just over $1,600. There are some smaller permits you will need and your UCR. This year it cost $39 for 2 pieces of equipment. I read somewhere that it is expected to go up to $82 next year. The cost depends on how many pieces of equipment you own.

If you plan on pulling hazmat you will need additional authority and insurance. Depending on the type of hazmat you pull, you may need up to about $5 million in liability insurance. General freight can usually be put on the truck with only $1 million. You will also need at least $100,000 cargo but may need more if you haul hazmat. Motor carrier authority is a one time fee, for now. Hazmat permits or authority must be renewed. I believe it is every 2 years. I haven't hauled hazmat in a while, but the cost will vary according to the size of the carrier. Frankly, I don't think it is worth it for the extra hassle and rates. If the money was there I might consider doing it myself, but hazmat hasn't been paying much more, if any, than general freight. Starting out you need to keep your costs down. You don't need the additional cost of hazmat insurance and authority. Not all insurance companies write hazmat insurance. You need to check some rates with and without hazmat.

By the way, what is "atm?"

 

atm= At the Moment?

 

lol, yup, anyways, thanks gman. That was ome of the info and financial data I was looking for. I was thinking going haz mat might open up plenty more frieght but if the increase in frieght is nominal right now I'll pass till later.

 

Since reading the last post gman posted in my leasing rental thread, I was curious, where are some of the best places to look for used trucks and trailers?

 

The Truck Paper is one of the best sources for used equipment. They have ads from individuals as well as dealers. There are other publications but this one is probably the most widely distributed and has more ads. They publish regionally, so you will see different ads according to where you pick up a copy. They are available at most truck stops. You can also access them online at www.thetruckpaper.com (I believe that is the correct web address). There is another publication you can purchase at convenience stores called "Big Truck Trader." There are others, but I don't recall their names.

I would also visit some dealers. You can sometimes find a good deal from a dealer who is highly motivated to move some inventory. Take your time and you should find a good deal. Some dealers will sell trucks that they don't own. Individuals may pay a dealer to sell their equipment. I bought one truck this way and paid about $1,000 or so less than the wholesale on the truck. It was a one owner and had a lot of extras. Don't worry too much about brand names. When I look for another truck I have a few basic things that I want and other than those items I will look for something that meets most of my needs including a good price.