After 16 years of driving for different companies I've decided I want to buy my own truck. I live in the middle of Binghamton and Rochester, NY. I moved here from NJ 3 years ago and there isn't really any major companies in this area unless I want to run garbage or maybe containers. Garbage is definitely a no-no. Been there done that. I'm looking to run NY, NJ, and eastern Pa. I think I want to finance something like a 2000-something Mack Vision or CH.

Can someone give me some info on financing a truck, taxes, stickers, etc.? I would really appreciate it.

Are you considering leasing your truck on with a company or getting your own authority? Either way, GMAN has posted many times in great detail all the expenses involved in going both ways.

Don't do it until you can afford to buy the truck outright. I don't know about the US, but in Canada, the finance company will wamt you to have collision insurance to protect their asset. This, plus interest, will eat into your profit.

Banks in the US will also require you to have collision insurance. Even if the truck is paid for you're still gonna want collsion insurance incase you crash or someone without insurance crashes into you.

Tbone_NY, you might want to do a search to find much of what you are seeking. You didn't mention whether you plan on running your own authority or leasing on to a carrier. You also didn't mention what type of freight you want to haul. As far as base plates, each state charges a different rate. I pay just over $1,700 for base plates, IFTA, SSR, etc., in my state. Some of the northern states charge more. In Illinois you could pay around $2,200 for the same thing. New York is one of the high tax states. Other than the items listed, you will need a NY Hut sticker. If you only want to tag in 3 states, your costs could be less, but I would advise against only tagging in those 3 states. You will likely find yourself running in more than those areas or limiting your income. Paying cash is always the best way to buy a truck. However, most people will finance their purchase. If you have good credit and a good relationship with a bank, I would start there first. Not all banks finance class 8 equipment. They will sometimes lend you money for that type of purchase if you have a good relationship with them and good credit. GE Credit, Paccar, Navistar and Mercedes Credit also finance trucks. Most of them will require a credit score of at least 650 with driving or previous truck ownership experience. They will likely also require a copy of a contract for the company with which you plan on leasing, if that is the direction you plan on going. More information would help. You will probably also need a down payment of from 10-30% of the purchase price. There are several companies who lease purchase trucks. I am not talking about the "fleece purchase" program offered by some carriers. I am talking about a true lease purchase where you can buy the truck at the end of the lease. I don't recommend that to most people. Good luck.

On a 2000 model year truck, the insurance company will write it off and pay out $10,000. Then cancel your insurance or jack the rates so high you can't afford to drive.

Thanks for the replies. I want to lease with a company...preferably dry van or reefer. Maybe containers. I hear enough horror stories from company O/Os to last a lifetime. I know there's a lot involved...especially insurance...but I just want to get an idea of what's ahead of me and I'll do a search on GMan's posts. Thanks again for your help.

Collision or comprehensive insurance usually runs around 3-4% of the stated value of the equipment. I have seen is as low as 2.5% and as high as 5%. You can give OOIDA a call and they can give you a good idea of what it costs through them. If you lease to a carrier, you may get it for less through them. I have always preferred to have my own insurance away from a carrier from whom I lease. There are several companies who will write collision or comprehensive insurance. Most charge about the same. If you lease to a carrier you will be required to have some sort of accident or workers comp insurance. Unless you live in North Carolina, it will be less expensive to have the Accident insurance. It pays about the same and is much less of a hassle to deal with if you ever need it. It should run you around $125-140/month. You will also be required to have bobtail insurance. That should run you around $30/month. Landstar requires unladen liability instead of bobtail insurance. It is basically the same thing, but will cost a little more. You can get all of this type of insurance through OOIDA. Some of the larger carriers also have it available from them.

Just a thought, heres what I did, right or wrong....I took out a home equity loan for 40 grand, bought the truck and trailer for 35, on a 10 year note..payments are 475 mnth, but I pay at least 1000 mnth, sometimes more depending on the month I had, my goal is to pay it off in 3 years or less. saved me lots of interest, plus the interest is tax deductable. In 4 months Ive managed to stockpile about 25grand even after Ive paid myself a decent wage, allthough I admit my wife makes good money and so far ive just paid myself what I needed to pay my share of the household bills and will wait till the end of the year to decide what to do with all the rest of the money.

I have known of several owner operators who have gotten started by borrowing on the house. I have mixed feelings about that type of loan. The problem comes in when the economy slows and you may not be able to make your payments. The result can be that you lose the home. I have never liked risking everything on an uncertain venture. The interest should be deductible on a truck if you use it in the business, whether it is through a mortgage or business loan. The advantage is that you will have a lower monthly payment. The interest rate will probably be lower than if you borrowed on the equipment by itself.