Good news for those looking to buy a truck. Better news from a cash flow perspective. Here’s what I mean: The average truck that we financed last year was about $25,000. Today that average is down to $14,000. Both trucks do the same thing but the cost to finance them is almost half what it was last year. This is important in today’s trucking economy where loads are not as steady and pay is not what it was last year. What is interesting is the customers are coming to us with these cheaper trucks. We are not approving them for less. This tells me truckers are smart business people. They are aware of the current economy and are being conservative in what they get into. They are also smart enough to take advantage of the glut of trucks on the market and the subsequent drop in prices. Commercial truck financing is based on cash flow and a cheaper truck allows a driver to service the contracts he has while staying lean on the payment. I see this trend continuing for the foreseeable future.
Archive for October, 2009
Truck Values Continue To Plumet
Monday, October 19th, 2009Spike in Dump Truck Submissions
Thursday, October 1st, 2009What’s going on out there? All of a sudden we have been hit with lots of dump truck business over the last couple of weeks. No complaints we love dump trucks due to there strong value. Could this be sign of a recovering economy? What makes this better is the customers that are coming to us have business already lined up for the trucks and they are paying higher than average rates. Most of this is concentrated in the great lakes region and south east. We will continue to monitor this activity and keep you posted. Another interesting point is most of the guys were previous over the road drivers making a move into more local business. Interesting.
If your thinking of making a move into something different give me a call. Next week I’ll give another report on whats hot in the commercial truck financing world.