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  #11  
Old 01-26-2007, 11:41 PM
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BOL! I will be watching for your blog. drive safe!
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  #12  
Old 01-27-2007, 01:27 AM
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Quote:
Originally Posted by no_worries
"Age" of a truck as measured in miles, not necessarily time. The fact is that it's a used truck not new. Almost all lenders will charge a higher interest rate on used equipment than they will on new. By experience, I meant first-time owner-operator. How many years you've been driving makes little difference to a lender. In most cases a first-time buyer will pay a significantly higher rate than a return buyer.

I was being complimentary. You are not a buyer that qualifies for the best rates. Given today's interest rate environment I think you did very well.
I thought the same thing. That rate is almost a new-truck rate (just a point or two higher).
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  #13  
Old 01-27-2007, 02:54 AM
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I think you did quite well! As someone mentioned earlier.... the aluminum drives would finish off the look. You are in a good position to succeed.

Having a used truck that is payed down will allow you to be pickier about your freight and how much you "have" to work, but expect to pay the difference in truck payment vs. no truck payments once you depreciate your truck out. Seeing that you have a good accountant you will have someone that knows how to take advantage of this. My dad has had several trucks that were paid for after several years, and once he depreciated them out he ended up paying all the extra money he made to taxes anyway. He finally said they heck with driving an older paid for truck, and decided he could clear the same money driving a new one every couple of years - only difference is that with a payment you have to work!

Also on your tips you forgot to mention - "SAY NO TO CHEAP FREIGHT!"
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  #14  
Old 01-27-2007, 04:09 AM
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First off, Hamboner, I'll give you the benefit of the doubt and assume that this isn't what you're saying. But it's a point that should be addressed since there's so much misinformation floating around out there.

The idea that buying a new truck for the tax savings is a good one is a complete fallacy. All things being equal, the guy that buys a new truck when his depreciation is up will end up taking home less money than if he'd kept his old one. This is simple math. An O/O doing well will probably be paying, at most, 30-40% in taxes. That means that for every dollar you spend on a truck, you get a tax savings of no more than your tax rate. If you buy a truck for $60,000 and your tax rate is 35%, after 3 years your real tax savings is $21,000. So purchasing the truck ended up costing you $39,000 more than if you just continued to drive your old truck.

I'm not saying that buying a new truck isn't a good idea. Or even buying one every few years isn't a good idea. There are many factors that determine when the right time to buy is and they even vary on an individual basis. However, the idea that you should buy equipment just for the tax benefit is completely wrong. If you find a tax adviser that tells you this it's time to look for someone else.
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  #15  
Old 01-27-2007, 05:07 AM
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Quote:
Originally Posted by no_worries
First off, Hamboner, I'll give you the benefit of the doubt and assume that this isn't what you're saying. But it's a point that should be addressed since there's so much misinformation floating around out there.

The idea that buying a new truck for the tax savings is a good one is a complete fallacy. All things being equal, the guy that buys a new truck when his depreciation is up will end up taking home less money than if he'd kept his old one. This is simple math. An O/O doing well will probably be paying, at most, 30-40% in taxes. That means that for every dollar you spend on a truck, you get a tax savings of no more than your tax rate. If you buy a truck for $60,000 and your tax rate is 35%, after 3 years your real tax savings is $21,000. So purchasing the truck ended up costing you $39,000 more than if you just continued to drive your old truck.

I'm not saying that buying a new truck isn't a good idea. Or even buying one every few years isn't a good idea. There are many factors that determine when the right time to buy is and they even vary on an individual basis. However, the idea that you should buy equipment just for the tax benefit is completely wrong. If you find a tax adviser that tells you this it's time to look for someone else.
Without being too technical - the increased upkeep, depreciation factors, and the fact that you are driving an older tractor when you can be in brand new one are just a few of the reasons there is little difference in being paid for. Assuming the average O/O has a note that is gonna be around 60 months to pay off a brand new truck with zero miles ($120,000). When that truck is paid for you will be looking at an over-haul ($15,000) and the fact that your re-sell is gonna be next to nothing.

Yes, I do agree with you that on paper keeping a truck that is paid for is quite enticing numbers wise, but when you get into the rest of the picture there is very lil benefit to being paid for. A guy can run a truck three years, take the best part of his depreciation, and still have good re-sale on his truck. All of this without spending the extra money on overhauls etc. At the very same time you could be trading for a new truck and see very lil difference.

My dad has owned around 15 trucks in his career and has tried both sides of the debate we are having. He is back in a brand new truck after having his last paid off for about 5 years. Somehow, regardless of your calculations he ends up netting about the same money while owning a new truck versus having an older one.

True.....on paper looking strictly at depreciation it does seem like you are better off financialy, but from what I have seen there are no REAL benefits!
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  #16  
Old 01-27-2007, 05:20 AM
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The trailers make the money not the truck. Pay off the truck and buy a 53' step with a beaver tail and slide axle or better yet an RGN. Better yet buy both.

$.02
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  #17  
Old 01-27-2007, 06:47 AM
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Quote:
Originally Posted by rank
The trailers make the money not the truck. Pay off the truck and buy a 53' step with a beaver tail and slide axle or better yet an RGN. Better yet buy both.



$.02
That is true if you are talking trailers. My dad is in the process of buying an XL Specialized RGN. He is already hauling some loads with another guys and has been getting some good rates. My cousin pulls an RGN for Lonestar and they have the Fedex account here in Memphis. It is an awesome setup. They haul those light jet engines and fall offs back and forth to all the Fedex terminals across the country. He recenly hauled a couple to Washington St and back here to Memphis that was paying him $12,000 a turn. He made four strait turns!
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  #18  
Old 01-27-2007, 10:16 AM
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If you had a rgn like this one,
with the full top deck it seems you take advantage of alot of step and flat freight no?
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  #19  
Old 01-27-2007, 11:33 AM
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That is a nice looking trailer. I came close to buying one like that. The problem with those trailers is weight. They tend to be heavier than most step decks and other types of trailers. While you can carry some loads that are taller, some that are heavy cannot be hauled. No trailer will handle everything. You just need to find what works best for you and go with it.
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  #20  
Old 01-27-2007, 11:55 AM
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on average what is the weight on a trailer like that?
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