[jpeters72155]

Hi everyone, this is my first post on the forum. Here are the usuals:

Sorry if I posted this in the wrong section
Yes I did use the search function first :]
No it didnt give me good results, mostly none

Anyway, I handle all the financials and large financial decisions for a small trucking co based in Souther California. We have been in busn for about a decade but only until recently has there been a need to get a lot of new equipment. I have spent a lot of time researching semis, engines, mpgs as well as leasing vs purchasing. Here's what I would like some help with:

I've heard that if you need a semi for local work (picking up light to medium weight loads in 53 ft or shorter trailers M-F), you could get an inexpensive, low hp and torque semi and it would be fine. Which ones though... International Prostars look like a good deal but I know to stay away from the Maxxforce engines pre-SCR. What about post EGRs that are using SCR tech from Cummins I believe? Or if not, what about the one's with Cummins ISX engines? Its almost 2015 and want to know if it would be a good idea to buy some used ones. If thats a BAD idea, what other day cabs would you recommend?

We also need some sleeper trucks for long haul and I have read mixed reviews on a lot of trucks. However, it seems you can't go wrong with Freightliners, Kensworths or Peterbuilts. Unfortunately, we cant afford the last two new because we need 3-4 day cabs + 1-3 sleepers. Any recommendations on specific models or engines? Will be hauling dry freight 150,000-200,000 miles/year from CA to FL, NJ.

Which brings me to my last 2 questions. I've talked to a private leasing co that does full service leasing but only on Peterbuilts. They are saying the co should have about $500k in equity (total assets above total debts/liabilities in order to get a 2-3 yr lease on 2 (two) $134k Peterbuilts (day cabs). I know this is way too much for what we need right now but using that as reference, can I expect the needed equity to pretty much be double the value of equipment being leased? Ex: Trying to lease 4 day cabs worth $40k-60k each would mean a needed co. equity evaluation of $320k-480k? Im still waiting on Ryder to set up an appt, I think they are spending time with bigger customers. I'll prob just show up.

I do understand a regular lease and how it compares to a purchase. Basically, you are paying interest on a lease on both the residual value and the net lease cap cost where cap cost minus any cash down payment and cap cost is the MSRP minus any discount off msrp. With a loan you are paying interest on the MSRP minus any discounts off msrp and any cash down payment. Since the loan's payments are meant to pay off that entire amount, purchase payments are usually higher than on a lease for the same vehicle but lease payments include higher interest per month which means more overall in interest Anyway, I've heard 10-20% down for a purchase is typical with average to good credit. Do you guys agree?

I am not a trucker myself but my uncle is and I love the guy. I'm extremely driven to help the co. succeed. Sorry for the lengthy post but to whoever can offer advice, thank you!

[solo379]

Well, it's all gambling anyway, and i'd suggest you stop worrying about "brands", and look for something nice and sound, considering price, technical condition, and your particular needs. Get the best that you could afford, but don't go overboard. If you have a good mechanic, let him inspect the trucks, if you don't hire the one. Make sure he is know what he is doing, it's will be money well spend. And than of course do your math the proper way. If you've been in this business for decade, i'd not tell you how to do it. Good luck!

[GMAN]

I agree with solo about brands. When you take the skin off the trucks they are all pretty much the same. International has a good reputation and has been around for a very long time. Regardless of brand, most of the DEF trucks seem to spend a lot of time in the shop. As long as the truck is in good shape, age doesn't really make much difference. Make a list of what you really need and then one about what you would like in a truck. Then you can go shopping. Take your time and don't buy anything for the name. Match your needs with what is available. You can manage with a smaller engine and a 10 speed transmission. We used to cross the country with fewer gears and much less horsepower.

[jpeters72155]

Originally Posted by solo379

Well, it's all gambling anyway, and i'd suggest you stop worrying about "brands", and look for something nice and sound, considering price, technical condition, and your particular needs. Get the best that you could afford, but don't go overboard. If you have a good mechanic, let him inspect the trucks, if you don't hire the one. Make sure he is know what he is doing, it's will be money well spend. And than of course do your math the proper way. If you've been in this business for decade, i'd not tell you how to do it. Good luck!

Hi, sorry I hadn't seen this. I was only stuck on the brands for a bit because the initial set of info I was reading on a few forums. I've now learned that all brands have both good and bad things behind them.


And initially, I thought newer was not better because of the new emissions technology, DPF and DEF etc but it looks like 2013 and newer should be fine. The bugs must be getting worked out. I'm still on the hunt for the right set of equipment and right combo of purchasing and leasing. Thank you for the advice.

[jpeters72155]

Originally Posted by GMAN

I agree with solo about brands. When you take the skin off the trucks they are all pretty much the same. International has a good reputation and has been around for a very long time. Regardless of brand, most of the DEF trucks seem to spend a lot of time in the shop. As long as the truck is in good shape, age doesn't really make much difference. Make a list of what you really need and then one about what you would like in a truck. Then you can go shopping. Take your time and don't buy anything for the name. Match your needs with what is available. You can manage with a smaller engine and a 10 speed transmission. We used to cross the country with fewer gears and much less horsepower.

Thanks for the info. I could have sworn I saw you on another forum! :]

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