In today's unstable economy, the start up and seasoned
business has an unique opportunity to acquire an attractive
deal for off leases and repos for semi trucks, big rigs and
over the road trucks. Due to a contracting economy, many
lenders have excess inventories on their books that they
need to put back into their revenue stream as quick as
possible. These in-house inventories are non income
producing, therefore putting pressure on the lender to make
a deal with the consumer. These deals can be found in the
price, the financing or a combination of both.
An off lease and repo semi truck has been returned to the
lender as the lease has expired. The lessee has made a
decision to return the item in lieu of exercising the
buyout option. A repo has arisen due to a default of the
lessee for non payment terms or a violation of the terms of
the lease. Either way, the lender has taken these trucks
back and/and now must recondition them and either sell
these trucks or re-lease them.
The lender will either advertise their inventories through
their internal sales force, trade journals such as
truckpaper, truck trader etc or utilize outside
professionals such as brokers to move their inventories as
quick as possible. Sometimes, as these inventories either
sit or whatever reasons aren't moving, the lender will put
these items up for auction.
Some of the lenders in the market have advertised personal
credit qualifications as low as 575, prior bankruptcy rules
amended or ignored and start ups welcome. Additionally, the
front money to commence the lease can start as low as first
payment to whatever you might able to negotiate. Some of
the lenders have application only programs up to $250,000.
There are no financial statements, income tax returns or
bank statements required. Additionally, some lenders may
defer some of payments to get the semi trucks financed. The
buyout clauses on these over the road trucks can range from
a $1.00 buyout to 10% to 20% Trac leases to possible fair
market value buyouts. One should understand these clauses
because they have an impact on the passing of title.
For this article, the type of items we are going to
identify as potential deals for the customer are the
following manufacturers.
Petebilt, Mack, Kenworth, International, Freightliner, and
Volvo.
Additionally, these semi trucks utilize a substantial
amount of diesel fuel and this gasoline cost should be
evaluated in conjunction with the finance costs of the
truck. As the price of oil keeps going up, the decision
making on both the dealer/lender and the customer has made
it more difficult to balance the factors of profitabilty
and survival.
In conclusion, this is a buyers market for semi trucks and
one should evaluate all the factors relating to this
acquisition including gas costs, air emissions,
environmental type requirements, buyout clauses and the
related financing.
Happy hunting for your acquisition and related financing...
----------------------------------------------------
J.M Luna has thirty years experience in the financial
field. This includes accounting and taxes, leasing,
commercial and hard asset money loans. U.S Corporate
Capital Leasing Group assists the start up as well as the
seasoned business.
http://www.cclgequipmentleasing.com/trader.htm
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