Can YOU Afford a Brand New Truck? (Freightliner, Volvo, Kenworth, Peterbilt) Financial Breakdown
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- Опубликовано: 31 май 2024
- Can YOU Afford a Brand New Truck?
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Join Ronen in this insightful video as he delves into the burning question: Can you afford to invest in a brand new truck? With popular models like Freightliner, Volvo, International, Peterbilt, and Kenworth all fetching around $220,000, the financial commitment is significant. Ronen breaks down the numbers, considering realistic interest rates, monthly payments, and the crucial threshold freight rates must meet for aspiring truck owners to make their dream a reality.
Whether you're a seasoned trucker or an aspiring owner-operator, this video provides essential insights into the financial considerations of purchasing a new truck in today's market. Don't miss out on this practical guide to navigating the costs of truck ownership and achieving your entrepreneurial goals.
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📚 Chapters
00:00 Introduction - Can you afford a brand new truck?
00:16 How much money do you need to make to afford a brand new truck?
00:44 Commercial Equipment Financing Link
01:10 Realistic Interest Rates on a Brand New Truck
01:58 Monthly Payment on Brand New Truck for 5 Years
02:28 Analyzing Freight Rates
02:55 Where do freight rates need to be in order for you to afford a new truck?
03:58 New 2024 Volvo Trucks
04:18 When should you get in to the trucking industry?
04:37 Lease Purchase Programs
05:19 Company Drivers VS Owner Operators
05:44 Commercial Equipment Financing Link
06:05 Why you should NOT get into the trucking market
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Having worked in both the construction and trucking industries for a lifetime, I have always wondered why a single o/o would finance the purchase of a truck. I see a truck the same way as any other investment and not necessarily as a vehicle for me to drive around in. I've never gotten an answer to this but I'll try again. If you had the money in the bank to buy a new truck without borrowing along with 3 months operating expenses, would you do it? If not, why not? Strictly from an investment perspective, it's not at all passive. Given the time commitments of working in your business rather than on it, the hours of service limiting revenue generation, the non funded down time for warranty repairs, the unforeseeable fuel costs, the amount of compliance and tax documentation required, maintenance and insurance costs , and the depreciation of the only asset, doe's the potential ROI justify the purchase? The way I see it, being an o/o with a single unit is like buying a job you can't walk away from and the payments never end. Take the same driver with the cash in the bank and they invest it in a stable and boring, widows and orphans dividend paying bank stock and reinvesting the dividends into more of the stock resulting in a compounding effect, and while driving for another carrier for wages, he/she will be far ahead financially over a twenty year period than an o/o. without the health threatening worry and headaches. If you take the emotions and egos out of the equation and do a responsible cost - benefit analysis, I think you would agree with me.
I agree 100% with everything you said. You are spot on in believing I would agree!
Don’t forget you have to work all day 11 to 14 hours and 7 days a week away from home. Don’t touch these prices. Fix up the used stuff and work happily with days off in your month.
I cant afford a steer tire with these rates 💔😭
PA to Texas paying $2200 on 1400 miles… no O/O should even consider something as dumb as a new truck purchase 😂😂
I'm a company driver running reefer for some reason they always email me the rate con with the amount they are getting. I'm about to go pickup an Ohio to PA for $1900.
LoL I can second that and I got my Next Gen for $168,000 dumbest thing I ever did
@@Jackknife-TVyou seriously not making money? Even with a bad market you should clear 6 figure income if you work it.
The main problem is such a vast swinging in freight rates, you take a gamble with a 40k down payment while the freight rates are high and as soon as they collapse again you’re screwed 💀💀💀
I always love your analysis and videos, dreaming of being a truck driver, I just love it with passion ❤
I appreciate that!
I had to recently because my Kenworth transmission completely blew. I used the sale of it as a down payment for my Volvo. All I can say is, unless you've got contracted freight like I do, don't try it right now. Contracted freight = more on average pay.
Good points on new or used. Any hopeful new owner operators need to take into consideration running capital at least 6 months of it. If they don't have enough running capital and also for the huge insurance premiums, then stay as a company driver.
Between this channel and the channel trucking maid successful, I've learned so much! Thank you, please keep making videos.
Same
Thanks again, great perspective❗️😎 👍
If you have $40k, buy a used truck for $30k and spend $10k getting it road worthy. Then save money each month for maintenance and repairs.
Why buying a brand new , if you could get a 2020 good condition
The only truck I can find for $220,000 Canadian is in an international. Volvo 230 and that's a mid-roof Freightliner 235 that's a mid-roof Kenworth Peterbilt they're off the charts anywhere from 250000 $300,000 for Packer products and that's in Southern Ontario the prices are nuts
nobody cares about canada. your money is worthless
Why would anyone work for the rates offered in Canada?
@@Knightrem easier immigration for flip flop peeps
@@604h22agreat point
Are you going to do a video on how to spec a truck for max profit next?
The only people in the trucking business getting rich are the salesmans. I never thought I'd see those numbers for a brand new truck
I don't understand how you didn't see the government print money left right and center..
The only people getting rich are the ones with paid off equipment and don’t need to get in debt on a new unit.
@@Haulin_n_Ballin That would be me and no i'm not getting rich....
Lmfao if you think it's the salesman getting rich you got another thing comin
@@duvasio4204but you are seeing profit margins right? If you don’t maybe trying having your own authority and dispatchh for yourself to cut the middle men. I came in this business last May and I can say it went pretty well for me this year.
Those numbers hurt my soul.
Fantastic clock management Ronen! With that type of skill; you’d make a great basketball coach.
I think so too!
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
)I just looked up the broker you suggested on Google and I'm incredibly impressed with her credentials, so thank you for sharing. I'm going to send her an email right away.
Just buy one or two big names like apple and just keep saving little from every paycheck from your main job that you may have
You need $2.50-$3 per mile long haul if you want to be profitable
Whatever you can make with a brand new you can make with a use one. There is not money outhere with prices under 2.45 don't make sense
My local truck dealers are stacking trucks like cord wood, they are looking like my local Camping World with RV's... And I know guys with no payments, and they are struggling. I could not imagine having a $4000+ monthly cash outflow with the current rates... And it will not take much to disrupt this market, fuel spikes, the influx of illegals into the industry suppressing rates, etc. I want out.
Running bulk just got a brand new 57x , heavy spec. $277,000 out the door 8 percent interest $100,000 down and good rates . But u also gotta be good with money
When you're talking about fueling milage, you need to calculate in your def cost too.
Is this Canadian dollars or American?
U can buy a 2017-2018 for 20-30k inframe it and be out the door 50 all in no payments! U save 4k a month
Put $150k down and a new w900L is $250 out the door and at $1800 a month that’s not bad plus for me I use the write off and I never owe Uncle Sam a dollar after fuel and Payment deductions so it’s another $30k in my pocket or more to cover having a nicer rig and sell it every 4 yrs.
150k down? $1800 a month? That equals $49xx payments over 48 months. Thats insane
@JimmyD6977 not to mention with that much money down he could have bought a apartment building and been bringing in all kinds of money!
@@gregwilliams2875 hes just talkin. I don’t believe anyone would do that in this environment with these prices. Ill keep running my 17 389 til the wheels fall off.
The US government and corporations have been in bed together fixing the system against the owner-operators and independent contractors for years now.
"You will own nothing because we will steal it".
World WrEckonomic Forum
One of the main reasons the borders open too imo, thousands of 0.3/mile drivers for the mega carriers coming in every week
Very true. But have u seen the farmer protest that happening in the country? Pretty much what happened to them it’s what happening in the trucking industry here in the us. Now I believe if they do put speed limited that would be the last straw. Owner operator and small company will unit and go against the system. Just my two cents.
WEF agenda 101
$220k is way too high, if you look at MHC Kenworth in the US they have new T680's listed right now for 180k. My company just purchased a new Mack ordered to our spec for 170k including FET. Don't fall for dealers marking up trucks 30k+, shop around.
They are stacking new trucks like cord wood here in the Detroit area. They are going to have to do something with the pricing, because it is apparent there are not very many buyers out here. At least that is what my lying eyes tell me.
just like you just figured out potential earning on a calculator, they just figured out how more they can charge up on everything.
so, if rates go up, all the expenses will just go up with it...
The fun part on any level is fuel is so volatile it all makes sense, then on a whim fuel skyrockets. Even on used equipment you go from saving a few hundred a week & paying bills to oh crap 💩 in a few months. Committing to new is a he'll of a gamble. W2 for now again dammit but, just found a 16 volvo with 710k for auto hauling in very good condition for $18,500 n no payments. I'll save the payments n when back under my own steam save for a backup unit. One to the shop, roll on in another. Isn't a perfect outlook but if fuel goes to 6$ again I won't be tied to 4k a month in truck payments. I haul cars regionally when under my own steam. Currently D&H local home nights income at around 1k a week. Just over a decade out there on my own n as W2. Whatever pays the bills. 4k a month payments is not a great idea unless you have the known work to cover that. + + +$$$'s.
If you price out a new unit and you don't have five years in the industry and at least three trucks, you're also going to take an insurance premium hit on the value at the time of purchasing the truck which has $5000 value increments so your insurance is going to go up dramatically For that first year
The 2025 Volvo 860 I’m looking at is about $300,000, can’t wait to have my own truck and have no financing for a paid off truck ❤❤❤
By the time you paid it off it’s gonna be junk
For whom do you drive and for what?
Lol short answer no
5 year term slavery 🎉
You are counting on 11,000 miles per month, and that all the year through?? With national long haul, or maybe with large regional long haul, e.g., Western 11, yes, achievable for the super-full-time, highly industrious. What percentage of total drivers are in that situation?
Not the percentage I'm in, that's for sure. I like doing other things than driving and sleeping from time to time.
I rather spend $12000 rebuilding my 2007 coulmbia and settle for 6.3 mpg. Im out here to make money not making big payments and living in the truck.
Even after that huge price tag, you are still not guaranteed any reliability.. 😂 ❤
The fact that those payments are more than most peoples rent and mortgages is crazy af to me. ....smh
how is 10% huge when they were getting 7 miles to the gallon? that is .7 of a mile more, that is lost at a stop sign somewhere, or idle at the fuel pump.
Up to 10% so,
Does et do tanker??
Does it worth to buy extended warranty on a new freightliner cascadia? Thanks.
Well, I would invest that money in tools and diagnostic equipment and learn everything you can about the motor and driveline. These are 500,000 mile throw away trucks, when the emissions start failing along with the associated engine components, they are a real money pit if you are relying on a dealer to maintain your truck. So, if you plan on keeping the truck, refuse to maintain it and let the dealer do it for you, yes, I would get the warranty.
these manufacturers are no building for the truck driving individual. p-ricing is ridiculous. at best new should start at 70K and end at 90K.
No way not even 60,000
Fun fact: thr high end for cryogenic freezing is 200000
Wouldn't it be better to buy a few years old unit that has manufactured warranty and low miles and checks out with pre sale inspection
Bonne Question
200,000 truck..that's a lot of sleepless nights..when freight gets slow...don't need that stress..
Ronan... Where are you getting these prices? my boss just financed two new vovlo 860s cost was 184000 usd a piece...
Could he be talking in Canadian money??
@@semiretired6033 no because 220k is 165k usd and trucks arent that cheap
I've seen them at 180K on truckpaper
I was at peterbilt dealership and the price for peterbilt with cummins engine is 270k. Not including apu, warranty & other extras. Where is 220k price??? 😂
He's breaking down fleet buying power! Swift probably pays 180k a unit or less. ET transport is large enough to get a decent discount
Only if I won the Lottery?
There are brand new trucks for 180k , T680 , Volvo 760
He's an idiot
I enjoy your channel but I think your numbers are off here. I live and work in the Chicago market, one of the hottest trucking areas in the US, I work in financing and see truck prices all the time.
Internationals are 165k
Freightliner around 175k
Peterbilt and Volvo over 180k
If you are buying from a dealer and not a reseller you should never be paying over 180k
Rates are currently 7.7% Tier 1 customers, north of 8% for everyone else.
Is Freight rate 2.15$ usd or Cad ?
Usd.
@arminfejzulai1321 2.15 usd = 2.89 cad => Canadian company drivers are paid 0.55 average only. => Canadian trucking companies are still doing ok
I m an owner operator for 12 years. I cant figure out can you afford new truck nowadays.
Your math are completely wrong what about the interest rates how how much are s that?
no. not for the individual. for the fleets and the fleets only. you may buy one in 2027, 2028.
Who the heck has $40,000 for a down payment ? And whoever does will probably not be buying a semi truck.
I don’t know good business and people that know how to handle money like myself just easily put $100,000 down on a truck
@@89gw well at $100,000 I wouldn’t be buying a truck. I’d be buying a house or investing into stocks. If I have $100,000 laying around I’d probably not buy a truck with it
@@EddieV19 if you are new to trucking with 100k to put down, you are the type of customer dealers look for.
@@xidptl exactly , I can do so much better with $100k tho , I can buy 3 used semi trucks that are reliable and make money
@@EddieV19 not a bad thought although not the best strategy
Why u use 11 000 miles in the equation
the new ones are not as good as the old ones i'd prefer an old classic.
If u play the corporate play the game can afford 160k but 200k u crazy .
You can buy a good working truck for 40K at auction
Even with $23,540/month and you can't afford a $3500-$4000 truck payment?
I don't understand, unless you folks are in severe debt and have like a family of 10 or something lol.
😂😂😂😂
Ronen i cant even afford 5g internet. How u want me to afford a 250k truck
1 year old 200k miles 120 000 $ more realistic
Looking at those numbers you have to be pretty bad at math to go into the business.
Swift can afford many new trucks.
Only the largest mega carriers that’s correct…. They are normally leased though, not sure on how all that works…
@preppertrucker5736 swift don't lease they buy.
They use slave labour to survive
@@RedRedred-ld4pbNot what I was told
Everyone gets their trucks from compass
Trucks are $180,000 do a realistic video dude
Why buy new get a 15000 dollar truck run it for a year buy another 15000 dollar truck and keep going
Go company driver, problem solved.
Sure. Keeping up with its bullshit issues is another thing lol
Noooooooooooooooo
Is this Canadian dollars or American?
Is this Canadian dollars or American?
Is this Canadian dollars or American?