Being an independent truck driver is an exciting career, but if you are just starting out, it is a good idea to buy a used semi-truck rather than a new one. The following are four reasons for doing so.
Less up-front investment
This is important because, as much enthusiasm as you may have about your new career, there is a chance you may have second thoughts. You may have been on many trips with another truck driver and taken a couple of driving shifts, but once you start working solo with your own truck, the work may not be what you imagined. And in general, there are many pressures when you are in business for yourself. If you change your mind and want to pursue another career or want to drive for a trucking company, then you will have less money tied up in your truck.
A used truck will not depreciate as much as a brand new truck
A semi-truck purchase is different in many ways than a car purchase, but one thing that is similar is that a new semi-truck will depreciate the moment you drive it off the lot. If you finance a brand new truck, it will take many months before the value of the truck is greater than the loan. A used semi-truck will have already seen the largest percentage of deprecation in its first few years.
The resale value of semi-trucks is very good
A used semi-truck will lose some of its value over time, but they hold their value quite well. This is because they are used to produce income. If you purchase a used truck and take care of it, you will have an asset. In the future, if you want to upgrade to a better truck, you will be able to sell your truck and get much of your investment back or use it as a down payment for a new one.
You can pay off your loan faster
Due to a number of factors involved in financing, your monthly payments may not be cheaper than a new truck, but the length of the loan will be less. This is an important factor when making a living as an independent trucker. There are a great many expenses involved for a independent driver, and having that loan payment hanging over your head is a big one. You will be able to pay back a loan for a used semi-truck more quickly than a new one, so your monthly profits will increase sooner.
An independent truck driving career is exciting, but you are also an independent business person, and not every business succeeds. It is best to keep your initial investment small, and purchasing a used semi-truck is an ideal way to accomplish this. For more information, check out sites like http://www.arrowtruck.com/.Share