To have a successful trucking business, you must find ways to cut costs. One of the biggest expenses involved with any trucking business is the cost of equipment including trucks and trailers. A new 18-wheeler can cost as much as $200,000. Multiply that by five, or even 10 rigs, for a small-to-medium size trucking business, and you have a multi-million operation going. That’s a lot of money. Thankfully you do have options for reducing costs starting with commercial truck financing and equipment upgrades. Improve your bottom line with a focus on decreasing these fixed costs for your business.
Save Money with Commercial Truck Financing
Starting a trucking business is a huge investment in both time and money. Back to the price of a new tractor-trailer. If you have $200,000 in cash sitting around, you’re one lucky duck. For 99 percent of the rest of Americans that kind of cash investment for a trucking business is only a dream. The main way to establish a trucking business is through commercial truck financing. But what if your credit score wasn’t as good as you would have liked when you originally took out commercial truck loans?
Consider partnering with a truck loans finance company who has flexible payment terms. You may be able to reduce the amount of interest you owe, or stretch out and extend your payment schedule. Before you go to your truck financing provider to negotiate your trucking loans, note the following:
- Your loan and lease payment history should show that you have consistently paid on time and without issue before you ask to negotiate these costs.
- Have all of the proper paperwork on hand, such as your loan papers or latest credit report. Read through these and have a solid understanding of your costs and credit history before you contact your lender for negotiation.
- Have an idea of how much you want to negotiate for, along with a valid reason backing up your request.
- The more prepared you are for a negotiation, the more likely you are to come out on top.
Benefiting from Equipment Upgrades
Another way to reduce your cost per mile is by upgrading your equipment and replacing old rigs. One money saving route to take is through semi truck leases. Your drivers will be in newer equipment, which means fewer repairs and less costly maintenance. By the time the drivers have put 100,000 miles on the trucks, which is the typical mileage for a full-time over the road trucker, it’ll be the perfect time to return the leased rig for a newer model. Newer, more efficient trucks are better on fuel use, as well, for an overall cost saving maneuver.