Blown Motor Deal Of The Week
Capital Solutions
Deal Of The Week
Customer Blows A Motor In His Freightliner
The Problem: Customer Blows The Motor In His 2002 Freightliner With No Money To Fix It
We get these calls all the time where the guy needs money to fix his truck and get back on the road. He doesn’t have the money to fix it or the credit to finance the problem. He faces going out of business. There are some unique issues when facing this type of transaction:
- We’re putting money into a older truck. Sometimes it makes sense to sell off the truck as is and finance another truck
- Even though we are getting the title to the truck in question we still need another title. This can be difficult for a single truck owner operator
- With truck values being so low often the cost of the repairs exceeds the value of the truck
We have to look at these added concerns when doing a deal like this. We ask, Does it make sense to do the repairs or should he go buy another truck.
The Solution: Customer Had A 2004 Reefer Trailer He Could Put Up For Additional Collateral
And since we offer trailer financing as well this made sense.
Additional Collateral is the basis of our approvals. This customer had a reefer trailer he had just bought for $18,000. This made us secure on equity. Here were some of the other strong points:
- The cost of fixing the motor was $10,000. This made sense as it related to the value of the truck and trailer
- For $10,000 it made sense to do the repairs instead of purchasing another truck
- He had solid sources of business and had been in the business for a long time. This provided for stable income and experience
Doing this deal made sense all the way around and got the customer back on the road. He saved money over buying another truck.
Keeping them on the road is in everyone’s best interest. We were able to keep this customer in business by getting him back on the road with a fresh rebuilt motor.