What First-Time Truck Buyers Need to Know
to Start Their Business
Starting a new trucking business promises immense potential. But to take advantage of the opportunities out there—and establish yourself as an owner-operator—it's essential for first-time truck buyers to have a sound plan. Below, we've outlined what you need to know to start your trucking business.
Trucking is an industry that always endures. No matter what's going on in the world, cargo has to move, and trucks transport the vast majority of all freight in the country. Hundreds of billions of dollars in goods are shipped each year. According to the American Trucking Association, that number is steadily increasing, signaling healthy demand for the foreseeable future.
As an owner-operator, the rig you drive is your truck. When you buy or lease a truck from Gabrielli, you can choose to sign a contract with a trucking company. This is the more reliable option when you're just starting. On the other hand, you can start as an independent owner-operator, where you find your clients and handle business aspects such as marketing and accounting. As an owner-operator, you can also choose to work with a different carrier – or start building your customer base – if your current company doesn't work out. Essentially, as an owner-operator, you'll have more freedom and flexibility to make your trucking business work for you.
Preparation is key in financing a commercial truck.
Trucking is an industry that always endures. No matter what's going on in the world, cargo has to move, and trucks transport the vast majority of all freight in the country. Hundreds of billions of dollars in goods are shipped each year. According to the American Trucking Association, that number is steadily increasing, signaling healthy demand for the foreseeable future.
Owner-operators vs. Lease-operators
As an "owner-operator," you drive your own truck, and you're free to either get shipping contracts with carriers or operate under your authority. As a "lease operator," you'd lease the truck as part of your work contract with a carrier. As a lease operator, you may be bound to one carrier. If the carrier doesn't offer you consistent loads to haul, you may earn little for some periods, especially after subtracting your financial obligations to the carrier. You're also typically responsible for maintenance and repair costs while making lease payments for the truck. If this is the road you decide to take, have the contract reviewed by a lawyer before signing so you know exactly what it entails.As an owner-operator, the rig you drive is your truck. When you buy or lease a truck from Gabrielli, you can choose to sign a contract with a trucking company. This is the more reliable option when you're just starting. On the other hand, you can start as an independent owner-operator, where you find your clients and handle business aspects such as marketing and accounting. As an owner-operator, you can also choose to work with a different carrier – or start building your customer base – if your current company doesn't work out. Essentially, as an owner-operator, you'll have more freedom and flexibility to make your trucking business work for you.
Preparation is key in financing a commercial truck.
It pays to be prepared as a first-time truck buyer with a down payment, pending work contracts, and a good credit score.
Down payment - Commercial truck financing works differently than retail auto loans because you're investing in a business by investing in a truck. Most banks will ask for a 20% down payment and finance the remaining 80%. A good used truck will cost around $100,000, so plan to have at least $20,000 on hand to purchase your truck.
Work contracts - In most cases, commercial vehicle finance lenders will also want to see what contracts you have lined up for work. If you don't already have a carrier or customer, you may want to find one to qualify for financing.
Credit score - In addition, clear any credit card debts and follow best practices to improve your credit score. As with any loan, this will make qualifying for commercial truck financing easier.
Getting started with a carrier
Many carriers handle some of the business aspects for both owner-operators and lease operators. This can include finding an insurance provider and handling licenses, permits, and tax documents. Some also provide credit card systems that make paying for fuel easier. The workload is the most significant advantage of an owner-operator lease agreement versus operating under your authority. You don't have to find loads to transport. Instead, the carrier has the loads. This can translate into consistent earning potential – a huge plus for first-time truck buyers. Then, once you learn the ropes of the industry, you can start working directly with customers instead of through a carrier. If you're business savvy, you can earn more this way. And you have complete control over which loads you take.Create good financial habits to be more successful in
the trucking industry
If you don't already have excellent money management skills, now is the time to improve your spending habits and strengthen your finances. Having a good credit score and minimal debt before buying a commercial truck won't just make it easier to qualify for financing; it will also enable you to thrive as an owner-operator. The reality is that there are a lot of expenses to manage – insurance premiums, oil changes, and unexpected repairs. You also want to set aside a financial cushion in case of downtime if your truck breaks down. Get on top of your finances, create a business plan with a financial advisor, and consider adding a good accountant and legal advisor to your team to help you make critical decisions for your business.
Only pay for the features you'll use
There are so many options when buying a commercial truck. Don't rush the decision – do your research. Make sure you're buying a truck with the right specs for the hauling you'll be doing. Then, decide whether you should buy a new or used one. A new one always comes with a warranty. A used commercial truck costs less upfront; make sure it's reliable. At Gabrielli, we pride ourselves in helping you find the exact truck you need for your budget—nothing more, nothing less—to give you the best possible return on your investment.Buy from a trusted company with industry expertise.
Your truck is a significant investment, and buying from a reliable dealer is essential. Gabrielli Truck Sales is a trusted resource for first-time truck buyers in New York, New Jersey, and Connecticut. We're a family-owned and operated company servicing and selling commercial trucks in the Tri-State area since 1966. Please browse our vast selection of used and new trucks today and find the perfect vehicle to start your trucking business. As a one-stop shop for trucking professionals, you can count on us for service and repairs, parts, and industry insights. Contact us anytime – and let us help you start your business with a reliable truck.