All businesses require equipment to operate, some more than others. The problem is that commercial equipment is often very expensive and is prone to breaking down over time. This can leave companies in a tight spot. Not only is equipment a large upfront cost, but it also represents a liability over time. Used equipment often loses its resale value rapidly, and if something goes wrong, then your company can be stuck in a bad position with a huge repair bill and unable to operate. The solution: equipment leasing.
For those who have never heard of leasing, it’s similar to renting equipment, but the length of a lease is often much longer than a rental, and the cost of leasing is usually significantly less than you would pay if you were to rent your equipment for a long time. These days, many companies prefer to lease their equipment for a number of reasons.
First and foremost, when you lease, you don’t have to pay for the equipment upfront. The cost of the lease is spread out over time, which helps with cash flow. Also, if something breaks down, then you won’t need to pay for expensive repair bills; the leasing company will handle the repairs and may even lend you a replacement in the meantime. Finally, when your lease is up, you aren’t stuck with equipment that has lost its value; you can return the equipment and lease something new again or purchase it outright. Let’s look at the type of equipment you can lease.
This guide will go over the different types of commercial equipment you can lease and explain how you can lease the equipment you need today.
Transportation Equipment Leasing
If you need highly reliable equipment such as tractors, excavators, forklifts, trailers, or other heavy equipment to help run your business, then transportation equipment leasing may be a good fit. These assets help firms transport goods, schedule and coordinate work activities, and support the delivery of critical services. Transportation equipment leasing can help a number of industries, including construction, mining & minerals processing, oil & gas, and of course, transportation.
Some of the most commonly leased transportation equipment is as follows:
Highway Trucks
Dump Trucks
Dry-Vans
Crane Trucks
Tow Trucks
Cement Trucks
Pickup Trucks
Sprinter Vans
Plow Trucks
Utility Trailers
Reefer Trailers
& Much More
Aviation Equipment Leasing
Aviation leasing is a great way to get the equipment you need to support your aviation business. This type of financing is a great option for those who need equipment right away, are not able to purchase the equipment outright, and would like to avoid taking on more debt.
In addition, aviation equipment leasing is a great option for the aviation industry, which regularly experiences a high volume of demand for new and used aircraft. Whether you need a commercial jet for your aviation business or an amphibious aircraft, either way, leasing might be the perfect solution for you.
Some of the most commonly leased aviation equipment is as follows:
Single Engine Propellers
Twin Turboprops
Light & Heavy Jets
Helicopters
Fishing Boats
Sail Boats
Catamarans
House Boats
Tugboats
Yachts
& Much More
Agriculture Equipment Leasing
Agriculture is an extremely competitive industry, and it’s important for farmers and ranchers to be able to lease the equipment they need to stay competitive. Equipment leasing for agriculture can help you get the best price and terms for your new or used equipment.
With less risk compared to purchasing new equipment, you can lease the equipment you need and get right to work right away. There are all sorts of agricultural tools available through leasing, including farm equipment, dairy equipment, grain equipment, and more.
What type of agriculture equipment can you lease?
Tractors
Harvesters
Sprayers
Field Cultivators
Ploughs
Balers
Irrigation Equipment
Wood Grinders
Barns
Grain Bins
Combines
Processing Equipment
Dairy Equipment
& Much More
Construction Equipment Leasing
Construction is one of the most competitive industries. In addition, the industry is highly regulated, which makes it even more difficult to be successful. Leasing construction equipment can be a good decision when a business needs new or used equipment right away and is not able to secure a loan.
Construction leasing can also be a great way to secure the long-term use of equipment so that you can bid on new jobs and complete projects on time and under budget. Whether you need a crane, bulldozer, or excavator, there are many different types of construction equipment that you can lease today.
What type of Construction Equipment can you lease?
Excavators
Backhoes
Aerial Lifts
Cranes
Dozers
Generators
Cement Mixers
Cold Planers
Trenchers
Telehandlers
Skid Steers
Pipe Layers
Utility Vehicles
& Much More
Industrial Equipment Leasing
Industrial equipment leasing is a popular financing option for a number of industries, including manufacturing, food & beverages, and mining. With industrial equipment, you may also be able to lease equipment with elevated utilization rates for a short period of time.
Warehousing, cross-docking, and cold-storage facilities almost always lease their equipment due to the high cost of buying the equipment outright. So, whether you need forklifts, aerial lifts, or even warehouse shelving, there is an industrial equipment leasing solution that will be perfect for your company.
What type of Industrial Equipment can you lease?
Forklifts
CNC Machines
Laser Cutters
Compressors
Power Tools
Aerial Lifts
Chippers
Presses
Pumps
Grinders
Welding Equipment
Industrial Scales
Warehouse Shelving
& Much More
Hospitality Equipment Leasing
The hospitality sector is a lucrative but expensive industry to break into. If you plan on opening a new restaurant, then you probably already know how expensive some of the equipment can be to purchase. Grills, Refrigerators, Ventilation Systems, and POS systems are all necessary, and they all cost a small fortune to buy outright.
Fortunately, by leasing this equipment, you can open your doors as soon as possible and start taking reservations today. Best of all, by spreading out the cost of the lease over time, you’ll still have access to the cash flow needed to operate a successful business in this competitive industry.
Some of the most commonly leased hospitality equipment is as follows:
Ovens and Ranges
Ventilation Systems
Refrigerators
Walk-In Freezers
POS Systems
Ice Machines
Blast Freezers
Blenders
Kegs
Washing Equipment
Janitorial Equipment
Furniture
& Much More
Office & Tech Equipment Leasing
Offices and tech companies often require a ton of equipment in order to start conducting business. Some of this equipment is relatively inexpensive, but much of it can stretch your budget thin. From computers and printers to desks, copiers, projectors, and of course, office furniture, it can be difficult to gather the money you need to buy everything all at once. The good news is that by leasing your office equipment, you can start conducting business right away. Many offices and tech companies lease their equipment, and you can too.
Some of the most commonly leased office & tech equipment is as follows:
Coffee Machines
Desks
Copiers
Printers
Projectors
Security Systems
Telephone Systems
Computers
Servers
Lighting
Monitors
Filing Systems
& Much More
Medical Equipment Leasing
Medical equipment leasing provides a unique way for doctors and other medical professionals to access the high-quality equipment they need. This type of financing allows professionals to focus on providing the best care for patients while medical equipment leasing companies provide the necessary resources. Medical equipment leasing is a good fit for many industries, including medical, surgical, and laboratorial.
In fact, many science centers and research facilities also choose to lease the technical equipment they need due to the high cost of purchasing this equipment outright. With each industry, equipment leasing can help alleviate the impact of budget constraints and allow you to start practicing your profession immediately.
Some of the most commonly leased medical equipment is as follows:
X-Ray Machines
Intraoral Cameras
3D Imaging Systems
CAD/CAM Systems
Apex Locators
Lab Freezers
Lab Chillers
Climate Chambers
Anaerobic Chambers
Incubators
Computers
Analyzers
Centrifuges
Microscopes
& Much More
Type of Equipment you Can Lease with Equipment Finance Canada
Equipment Finance Canada is the premier commercial equipment leasing company in Canada. Serving all the industries discussed above, EFC has helped thousands of businesses get the tools and equipment they needed to start operating, and they can help you too.
The application process is simple and straightforward, the terms are favourable, and the selection of equipment available is second to none. So, if you are looking to lease commercial equipment in any of the above-mentioned sectors, then be sure to check out Equipment Finance Canada for the best terms and customer service in the industry.
Summary
In summary, many companies, equipment leasing is an ideal solution that helps with cash flow, eliminates a big liability, and allows business to get going as soon as possible. There are many different industries that can benefit from equipment leasing, including: Transportation, Aviation, Agriculture & Farming, Construction, Industrial, Hospitality, Office & Technology, and the Medical industry.
By working with Equipment Finance Canada, you can gain access to the tools and equipment you need right away. Secondly, the application process is quick and easy. So if you are looking to lease equipment for commercial purposes, then be sure to get in touch with Equipment Finance Canada today.
There are many businesses that can be started from home with a small investment. Perhaps the most unique of these is owning your own truck and operating it as a business. As an independent owner-operator, you get to set your own hours and working conditions. While also enjoying the benefits of operating your own company. However, if you’re looking to start a trucking business, there are a few things you need to know.
In this comprehensive guide, we will explain everything you need to know about starting a trucking business. Including the best reasons to start a small business in the first place, why trucking is a lucrative business opportunity, the different jobs available in the trucking industry, how to actually start a trucking business, and much more.
The Best Reasons to Start a Trucking Business
There are many reasons to start a small business. Some of the most common reasons include being your own boss, setting your own hours, and having great income potential. People who choose to become independent owner-operators enjoy all these benefits.
You are your own boss, controlling your finances and working conditions. Plus, you get to set your own hours and work whenever you want to. This allows for a much more flexible lifestyle than working for someone else. It can also be a great option for parents who need flexibility in their schedules.
Also, as the owner of the business, your earning potential is nearly unlimited. If you put in the work and seek out clients, you’ll be able to make a very good living. Probably much more than you imagine is possible right now.
Let’s look at some the benefit of why your should start a trucking business in more detail. So that you can understand these perks a little bit better.
Self-Employment
One of the main reasons to start a trucking business is to become self-employed. A self-employed individual is responsible for paying their own taxes, insurance, and benefits through their own company. This is opposed to being an employee who gets a salary and benefits from an employer. Being self-employed can be extremely rewarding, but it also comes with some risks.
When you start a small business, it will cost you money upfront. This means you will need to have enough saved up to cover all expenses until you start making a profit. That said, you will be your own boss, accountable only to yourself and your clients. This is a huge quality-of-life upgrade that most independent truck drivers really enjoy.
Work Your Own Hours
Another great advantage of working for yourself is the flexibility in your schedule. You are free to work when you want, where you want, and with whom you want. If you have children or other dependents, you can choose to work full-time or part-time. You can also choose to take time off for vacations, sick days, or any other reason you might need. Best of all, you won’t need to run your decision by anybody else because you are the boss.
However, although you can work whenever you want, you will need to work enough to generate a consistent income. If you don’t work enough, you won’t be able to pay your bills. A large part of being self-employed is learning how to manage your time and striking the perfect work-life balance. That said, as an independent small business owner, you will eventually be able to enjoy much more time off than would ever be possible if you were an employee working for somebody else.
Great Income Potential
Starting trucking business can also be an excellent way to attain financial security because you have more control over your income than if you were working at a normal job as an employee. If the company you work for decides to cut your pay or lay you off, it will affect your financial situation. But if you own your own business and have a steady stream of customers, you will always have a way to earn money.
There are many types of small businesses that have high earning potential. Trucking is one of them. The demand for truck drivers is projected to grow as the economy expands. Therefore, trucking is expected to be a very lucrative business opportunity for many years to come. As the owner of a trucking company, you will probably be your very first driver as well. But in time, you will probably want to expand and hire other drivers while you oversee the client side of things. But we’ll come to that.
Trucking is a Lucrative Small Business Opportunity
If you’re thinking of starting a small business, then you’re probably considering a few different industries and wondering which ones offer the best opportunities. After all, not every business is equally profitable, and some are more challenging than others in terms of the capital required, the time required, and the amount of stress involved with starting the company.
Rest assured that the trucking industry is a great choice and has become an extremely lucrative small business opportunity for savvy entrepreneurs. In addition to its low entry cost and favorable demand outlook in the coming years, there are many other reasons why this industry offers a lot of potential for those willing to invest in getting started.
Why You Should Start a Trucking Business
The trucking industry is a lucrative small business opportunity for many reasons. The first is the low entry cost of starting a trucking company. To start a trucking company, you’ll need to invest in a small fleet of trucks and employ a few drivers. Although the upfront cost may be significant, the average capital required to get started is low compared to other business models. This is especially true if you decide to finance your first truck rather than purchasing it outright.
The second reason is the urgent demand for qualified drivers in the coming years. The trucking industry is expected to face a shortage of nearly 200,000 drivers over the next decade. As such, the demand for truck drivers is expected to continue to rise as the economy grows and online shopping becomes more prevalent. This means that there will be lots of money to be made as a truck driver in the decades ahead and even more money to be made if you own a trucking company.
But as is the case with any business, if you’re thinking about starting up an enterprise, then it’s important to be familiar with the ins and outs of the industry. So, let’s look at an overview of the trucking industry, examine the pros and cons of operating a trucking business, and see what insights we might be able to discover. This way, you’ll be able to make an informed decision about whether a trucking business is really the right choice for you.
Overview of the Trucking Industry
The trucking industry is massive. It involves the operation of trucks and other large vehicles on roadways for the purpose of transporting goods and materials from one location to another. It’s one of the largest industries in North America and supports more than 8 million workers across Canada and the United States.
The need for truck drivers will only continue to grow as technology continues to advance, resulting in a shortage of qualified drivers. In the coming years, the demand for truck drivers is expected to exceed 1 million people due to an aging driver population, increasing adoption of autonomous driving technology, and an increase in e-commerce deliveries.
With that in mind, let’s look at a couple of key statistics and answer a few important questions you may have about the trucking industry and the day-to-day responsibilities of a truck driver. We’ll also give some insight into what it takes to run a successful trucking company and what a normal day might look like for an independent owner.
What is the Job Outlook for Truck Drivers?
There are more than 3 million truck drivers in North America, and the vast majority of these drivers work for for-hire trucking companies. The job outlook for truck drivers is expected to grow exponentially by 2026, which is much faster than most other industries.
That said, the job outlook varies significantly according to the size of the company in question. This is because larger companies have a higher demand for truck drivers since they typically have more commercial trucks on the road at any given time compared to smaller companies.
All things considered, the outlook is very favorable up to 2026 and even for the foreseeable future beyond that, making now the perfect time to start working as an independent truck driver or, even better, to start up your own trucking company.
How Much Can You Earn If You Start A Trucking Business?
The average truck driver’s salary for an entry-level driver is about $40,000 per year, but this varies significantly based on your employer, experience, and the types of routes you’re driving.
With a few years of experience, you can expect almost double this. Something in the neighborhood of $60,000-$80,000 per year is fairly standard for an experienced long-haul driver working full-time.
Owner-operators with their own clients and truck can easily earn six figures a year; it really just depends on your clients and how much time you want to spend on the road. Much like with any other business, you’ll get out of it what you put in.
Different Jobs in The Trucking Industry
Trucking is an interesting and complex industry. Depending on the type of truck you drive, and the company where you work, your job as a truck driver can come with various responsibilities, duties, and challenges. If you’re interested in pursuing a career in the trucking industry, it’s important to know about the different types of jobs available.
From entry-level positions to management roles and everything in between, there are a variety of opportunities for those looking to work in this field. Depending on where you live and your career goals, there are many different paths that lead to working as a driver in the trucking industry.
Let’s go over a few of the most common types of truck driving positions so that you can decide what type of trucking business you want to start.
Long Haul Freight Drivers
Long-haul freight drivers are responsible for driving their shipments from one end of the country to the other. These drivers spend a lot of time on the road and typically have to adhere to strict deadlines when it comes to getting their load to its destination on time. Depending on the company, a driver may be required to make certain stops along the way to pick up or drop off other loads. This type of driver usually has a set schedule and typically drives during daylight hours. When it comes to pay, long-haul truckers usually make more than short-haul drivers.
Short Haul Freight Drivers
Short haul drivers usually make local deliveries within a certain region, typically within 100 miles of their start and end points. While both long-haul and short-haul drivers often have set schedules and have to adhere to tight deadlines, short-haul drivers often work nights, weekends, and holidays. Short haul drivers often make less than long haul drivers, but the difference in pay isn’t drastic.
Dump Truck Drivers
Gravel or dump truck drivers haul dirt, aggregates, and other materials used to build roads and other types of construction projects. Dump truck drivers often work with a crew and have to make sure their truck stays stocked with the appropriate amount of material for each project. Dump truck drivers make sure that their truck is loaded within the weight limit and that the load is evenly distributed. This means that the weight is evenly distributed throughout the truck bed.
Tanker Drivers
Tanker drivers haul chemicals, fuel, and other hazardous materials. If you drive a tanker, you might have to have special training and licensing. It’s important to understand the different regulations and restrictions associated with the type of material you transport. Tankers are often required to have a placard on the side of the truck that shows the type of hazard being transported. This helps other drivers and law enforcement officials recognize the load being hauled in the truck.
Flatbed Haulers
If you’re driving a flatbed, you haul large, bulky items that don’t fit in a truck bed. This could include furniture, appliances, large pieces of construction equipment, or other large pieces of cargo. Flatbed drivers often have to pick up and drop off their load at the shipper or the shipper’s location. If you drive a flatbed, it’s important to have a designated securement system to secure your load. Your load could be anything from furniture to construction equipment, so you have to make sure it stays in place while you’re driving.
Dry Van Haulers
These type of trucks haul just about anything, although they typically transport dry goods such as food, clothing, and other non-hazardous materials. As a Dry van hauler, you typically pick up their load from a shipper, transport it to its destination, and then drop it off at a receiver. Dry van drivers often have a set schedule and work a regular work week. This type of driver often makes less per mile than other types of truckers.
Automotive Haulers
Automotive haulers haul cars and other vehicles. This type of trucking job often requires special training and licensing, and the company you work for may have special requirements when it comes to the type of vehicle you use. Automotive haulers typically have to load and unload their vehicles at a shipper or receiver. This type of driver may have to work nights and weekends to accommodate the pick-up and drop-off times of the shippers they work with.
Truck Driver Instructor or Trainer
If you enjoy teaching others, a truck driving instructor or training position might be the right fit for you. While you might not be on the road hauling loads all the time, you still get to be a part of the trucking industry. Truck driving instructors and trainers work at truck driving schools or training facilities.
This is a great profession for those who want to work in the trucking industry but don’t want to be on the road all the time. Working at a driving school allows you to help new drivers get their licenses and start a career in the trucking industry. You can share your knowledge and experience with new drivers, and you can help them feel more confident when it comes to the road and the classroom portion of their training.
How to Start a Trucking Business
Now that you know about all of the different types of truck driving and you’ve decided on one that seems perfect for you, you’ll need to actually start up the business, and there is a lot involved with starting a small business. The trucking industry is no exception to this.
So, let’s go over everything you’ll need to do in order to launch and grow a successful trucking company.
Gain Some Experience Behind the Wheel
If you’re new to the industry, one of the best ways to start your trucking business is to get some on-the-road experience. You can do this by applying for a job as an entry-level driver or company driver. During your time as an entry-level driver, you can focus on building your skills and gaining experience under your belt. Once you have enough experience under your belt, you can focus on growing your business from there.
Another option is to apply for a company driver position at a logistics company that might be hiring. These companies often hire experienced team drivers to drive for them. This will give you the opportunity to work with a variety of different loads and customers. Plus, this will also give you the opportunity to earn a solid paycheck while you’re waiting to launch your own trucking business.
Create a Detailed Business Plan
Now, before you finance your first truck, you need to have a detailed business plan. This will help you to understand the industry and your specific niche, as well as give you a clear path to follow as you grow your trucking business. Your business plan should include information about your industry, your competitive advantage, your company, and your finances.
You should also include a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), which will help you identify potential issues and opportunities in your business. When it comes to finances, you’ll need to have a strong understanding of your expenses, profit margins, and revenue projections. This will be very important when you’re trying to secure financing for your business.
Finance Your First Truck
When you start your trucking business, you’ll need to finance your first truck. The good news is that trucking is a very capital-intensive industry, which means there are lots of opportunities to finance. Here are a few different financing options you can explore when you’re getting started:
Bank Loan
If you’re starting a trucking business, you may be able to finance your first truck with a bank loan. However, this type of loan is difficult to get and will generally come with high interest rates. Plus, in most cases, you’ll need to put down a significant amount as collateral. And if you miss a payment, you could lose your truck.
Commercial Loan
If you’re planning to start an operation that involves specialized equipment, such as a refrigerated truck, you’ll likely need to go with a commercial loan. These loans are designed for larger operations and are available from commercial lenders. Like bank loans, a commercial loan can be difficult to secure. They will almost always have a very high interest rate.
Finance Your Truck
In most cases, the best option for securing your first truck will be financing. Financing allows you to get your truck right away and spread the cost out over many years. This way, you won’t need to come up with a huge down payment. Another benefit of financing is that, in most cases, it is not required to produce collateral. This is often the easiest way to get a loan. Especially when you work with a company that specializes in financing the transportation industry, such as Equipment Finance Canada.
Find Some Clients (or Sub-Contract)
Once you’ve secured financing for your first truck and have some driving experience under your belt, you can start to find some clients to subcontract with. Sub-contracting is a common practice in the trucking industry; you’ll provide your services to another trucking company that has clients and a need for drivers.
Finding sub-contracting work is easy. All you have to do is start calling companies and asking if they have sub-contracting opportunities. The best time to start looking for sub-contracting opportunities is as soon as you start trucking. You can keep a list of companies that have work available and then start calling them when you have time.
Another option is to search for your own independent clients. This is more lucrative, and you’ll make more money when you secure the clients yourself. However, there is a lot of work that goes into finding clients. So, as a new business owner, your best bet will almost always be to work as a sub-contractor, at least while you’re learning the ropes. Once you have some experience, you will almost certainly make connections with clients, which will open doors for your company.
Expand by Financing a Second Truck
Once you’ve established yourself in the industry and developed a solid customer base, you can start to expand your business by financing a second truck. This will allow you to take on more work and bring in more revenue. Furthermore, financing a second truck will enable you to collect a better rate of return on your assets. You can do this by applying for a loan on a truck title loan. Truck title loans are like car title loans in that you use the truck title as collateral.
Alternatively, you can stick with what is already working for you and finance your second truck. The process is easy, and it will be even easier if you’ve already paid off the first truck that you financed when you started up your company. Again, we highly recommend that you contact Equipment Finance Canada, as they are specialists in this industry and have helped thousands of people get financing for first and second trucks. They can even help you finance an entire fleet if you qualify.
Build a Team of Employees
As your business grows and you start to hire more employees, you’ll want to get a copy of the employee handbook. This will help you to lay out all the rules and regulations for your employees and will provide a guide for you to follow as you manage your team. You’ll also want to make sure to get workers’ compensation insurance coverage. This is a type of insurance that every employer should have. It provides coverage for employees who get injured on the job.
Having coverage will protect you and your employees in case of injury. Finally, you should also get a general liability insurance policy. This type of insurance provides coverage if someone gets injured while on your property or while using your equipment. Having coverage will protect you in case someone sues you because of an accident.
Keep Investing in Your Business
As your business grows, make sure to keep investing in it. This can include investing in new equipment, expanding your customer base, and hiring new employees. Keeping up with industry trends and staying on top of new technology will also help you to stay successful.
Additionally, you should try to network with industry professionals, such as trucking company owners and other truck drivers. By leveraging relationships with these individuals, you may be able to get advice, references, and more work as your business grows.
Equipment Finance Canada Can Help!
Equipment Finance Canada is the premier source for transportation industry financing. The application process is quick and easy; all you need to do is get in touch with a representative at EFC, explain your situation, and go over some details about the type of business you’re looking to start. After providing a few documents, you can be approved for financing for your first truck almost immediately.
As your business grows, Equipment Finance Canada can help you expand by financing your second and third trucks as well. They can even finance an entire fleet if you qualify for that sort of lending. By starting off with your first truck, you’ll be able to build up a payment history with EFC so that even if you don’t qualify for fleet lending right away, you may be able to get that sort of financing at some point in the future when you’re ready to expand.
What is the cost of Purchasing A Semi Truck in 2022?
When it comes time to purchase your next commercial vehicle, there are many factors to consider. One key question you might have is about the cost of purchasing a semi-truck. After all, commercial vehicles aren’t cheap.
Depending on the make and model of your new truck, the cost of purchasing a semi will vary widely. Fortunately, with a little research, you can get a good idea of what to expect from your next purchase.
The good news is that we have already done that research for you, and in this article, we will go over everything you need to know in order to purchase your next new or used semi-truck.
In this guide, you will learn how much a semi-truck costs, the additional expenses involved with buying a semi, whether you should buy new or used, how much most semi-truck drivers earn, and much more.
How Much Does it Cost to Purchase a Semi Truck?
This is a tough question to answer, as it depends on a few factors. One factor is the make and model of your semi-truck. Next, it depends on the condition of the truck you choose. Some manufacturers list their models as “drivable,” while others state they are “as is” or “where is.”
That said, some good general guidelines can be helpful when purchasing a new semi. As a very basic rule-of-thumb, a high-end semi-truck, such as a Peterbilt or a Kenworth, should cost around $200,000+ if purchased new or around $175,000 used. A mid-range model such as a Freightliner, International, or Volvo truck will be cheaper and can often be found for around $150,000 new or $100,000 used.
However, you also need to consider the other expenses involved with buying a semi-truck. This includes such things as the purchase price of the truck, taxes, and the cost of using it. If you buy a used truck, you should also factor in the cost of repairs.
Other Costs When Purchasing a Semi Truck
When you purchase a new vehicle, you won’t have too many expenses. However, there are some unavoidable expenses associated with owning any semi-truck.
First and foremost, you will need to make sure you have enough fuel to run the truck. Some trucks require a lot of fuel to operate, while others only require a few gallons at a time. It’s a good idea to have a set amount of money for fuel while you’re on the road.
Of course, you will also need to have a license to operate the vehicle. Training and licensing vary in price, but generally speaking, if you don’t already have a license, you should budget around $10,000 for training and licensing. Make sure you also clear your calendar for the training and testing.
Next, you will need to insure the vehicle. Insurance for commercial highway trucks isn’t cheap. You’ll need to shop around and get a few different quotes before making your decision on an insurance policy for your semi. For an average truck driver with an average truck, you’re looking at between $2000 – $18,000 per year for insurance.
Finally, don’t forget about the taxes. When you purchase a truck, whether it’s new or used, you will need to pay tax. It’s important to keep in mind that the tax rate is not based on the purchase price but rather on the truck’s book value. So, remember to inquire about the taxes before finalizing your purchase.
Should You Purchase a New or Used Semi Truck?
The short answer to this question is that it really all depends on your budget. Used trucks will almost always be cheaper to buy upfront. However, new trucks are usually less expensive in the long run because they require fewer repairs and are typically covered under warranty.
Regardless of whether you decide to buy new or used, there are a few things to consider before making your purchase.
First, you should make sure the model you choose fits your company’s needs. This might mean that your next purchase is a bigger model. Or it might mean that you choose a different model.
Next, you need to make sure that your chosen truck is profitable. Remember, some models are more profitable than others. You should always do a lot of research on your truck’s profitability before you make a purchase.
To help you with that task, we have compiled a list of pros and cons associated with purchasing both new and used semi-trucks so that you can decide which option will be best for you, your business, and your budget.
The Pros and Cons of Buying New vs Used
Keep in mind that there may be additional benefits and drawbacks of buying both new and used semi trucks. However, this list details the biggest advantages and disadvantages of each option.
The Pros of Buying a New Semi Truck
New trucks have the latest technology
There is a large selection of new trucks to choose from
New trucks come with a large warranty
New trucks are often cheaper to operate than used trucks
New trucks are more profitable than used trucks
The Cons of Buying a New Semi Truck
New trucks cost more upfront
The taxes will be higher with a new truck
New trucks are more expensive to insure
The Pros of Buying a Used Semi Truck
Used trucks are cheaper upfront
Used trucks can be a good investment
Used trucks have lower taxes
The Cons of Buying a Used Semi Truck
Used trucks may need expensive repairs
Used trucks are less fuel efficient
Used trucks cost more to operate
As you can see, the best option is usually to buy a new semi truck rather than a used one. But, if you do your homework, shop around, and get lucky, you may be able to find a profitable used truck that doesn’t require many repairs for a good price.
Consider Leasing or Financing Your Semi Truck
One thing to remember about purchasing a semi-truck is that it will cost a lot of money. However, you can often lease the truck or finance the purchase. These options allow you to get a new or used semi truck without paying the full amount upfront.
Of course, if you have the money to purchase your new truck outright, then that is probably the best option. But new trucks are expensive, and most people don’t have a few hundred thousand in cash on-hand to purchase a semi.
Leasing and financing are great alternative options that can help you get the truck you need today and spread the cost out over the course of several years.
The Benefits of Semi Truck Leasing
For those who don’t want to take on the financial risk of financing a truck, leasing a semi-truck can be a good alternative. With a lease, you have the security of knowing your costs of purchasing a semi truck. At the same time, you don’t own the truck and don’t have to worry about driving it off the lot. Should the need arise to buy a truck, you can simply end the lease and walk away.
There are also a number of other benefits to leasing a semi-truck. First, the lease payments usually include maintenance and fuel. This means you’re getting a truck with fewer out-of-pocket expenses. In addition, since you’re leasing the truck and not buying it outright, you don’t have to pay any taxes on the purchase price. This can help you save thousands of dollars over the lifetime of the truck.
The Benefits of Semi Truck Financing
The downside of leasing a truck is that you don’t own the asset. If you choose to finance your truck, you do own the truck, but you pay for the purchase over time. Typically, you will pay a small percentage of the value of the truck each month until it’s paid off, at which point you are free to sell the truck or do whatever you want with it. There are a number of advantages to financing a truck over owning it. First, you don’t have to worry about maintenance and fuel expenses. This can help save you money in the long run. Plus, financing a truck can help you save a considerable amount of money on taxes. Most truck drivers choose to finance their semi-trucks, but leasing can sometimes be a great option.
Being a Truck Driver is a Good Career
Truck driving is a good career if you are looking for a job that pays well and is flexible. Truck driving can be rewarding in terms of both money and experience. A lot of drivers are self-employed, so they can work when they want to.
While there are some disadvantages to being a truck driver, such as long hours and difficult weather conditions, it’s worth considering if you want to earn a consistent income while being your own boss and travelling across the country or continent.
How Much Can Truck Drivers Earn?
The salary of a semi-truck driver will vary depending on the type of trucking you choose to do, your experience, and the company you work for. Depending on these factors, the salary for a semi-truck driver can be upwards of $100,000 dollars per year, or even more for owner-operators.
Of course, this is assuming a long work week. It’s also important to note that you won’t see these wages right away. New truck drivers will start off with a lower salary while they are still in training, and it could take several years before they have the experience required to earn the highest rates in the industry.
That said, it’s not unreasonable to expect that you will be making a six-figure income after only a few years, as long as you are willing to put in the work and the long hours behind the wheel.
Common Expenses of Truck Drivers
Keep in mind that there are some expenses associated with truck driving, such as insurance and maintenance. You’ll also have to factor in the cost of fuel, as well as new tires and any repairs that may be needed from time to time.
In addition to these expenses, you’ll also be responsible for your vehicle payments. Depending on the type of truck you choose to drive, this can amount to thousands of dollars every month. However, the vast majority of truck drivers are able to pay for these expenses and still make a good amount of profit.
Conclusion
Truck driving is a good career that allows people to work flexible hours and earn a great amount of money. However, in order to get started, you will need a truck. Semi-trucks are expensive. So, what are the cost of purchasing a semi truck? Depending on the age, make, and model, you could be looking at $200,000 or more for a new semi. This is why it makes sense to either finance or lease your truck.
If you decide that you want to finance a semi-truck, then Equipment Finance Canada can help. Equipment Finance Canada works with people who need to acquire industrial equipment, such as semi trucks, and offers great financing options with low-interest rates. So, if you want to get into a brand new or gently used semi today, then be sure to contact Equipment Finance Canada.
Purchasing equipment can be very expensive, and you may not always need to own the equipment required for a project. By leasing equipment, you can save money and still have everything you need to complete the job. That said, leasing is a form of credit and, as such, requires approval. In this guide, we will explain how to get approved for equipment leasing. And offer some tips that can make the application process easy and straightforward.
Keep reading to learn:
What equipment leasing is
The documents required to lease equipment
How to increase the odds of being approved
Where you can lease equipment
And much more
What is Equipment Leasing?
Equipment leasing is similar to financing equipment. The main difference between equipment leasing and financing, is that when leasing, it’s actually the lender who purchases the equipment. In other words, when you lease, you will own the equipment outright once the term of the lease has expired. Because the client is actually not purchasing the equipment, leasing is generally easier to get approved for than typical financing. Equipment leasing rates are still very competitive. Especially for those who are well qualified, making leasing an attractive option for those who only need the equipment for a limited time.
How to Get Approved for Equipment Leasing?
Because leasing is a form of credit, you’ll be subject to credit and background checks. This is because equipment is often very expensive, and the lender needs to be sure that you have the means to cover the cost of the equipment if it’s lost, stolen, or damaged. Not every business gets approved for leasing, but there are a few things you can do to give yourself the best chance of being approved. So, let’s go over what you can do to increase your likelihood of being approved for equipment leasing.
Ensure your credit is in good standing
First and foremost, your business will need to have a good credit score in order to be approved for equipment leasing. You won’t necessarily need perfect credit, but your credit should be good and be in good standing. If your credit isn’t good, then there are a few things you can do to improve your credit score.
How to improve your credit score to get approved for Equipment Leasing
The best way to improve your credit score rapidly is to pay off any outstanding debts you’ve incurred. If it isn’t possible to pay those debts off entirely, then ensure you make payment arrangements and stick to the agreed-upon schedule. You can consider consolidating your debts into a single payment which might make repayment easier. Also, try not to use all of your credit. A good general principle is to keep your debt utilization at or below 30% of your available credit, meaning that if you have $100,000 in credit, you shouldn’t use more than $30,000.
Have an accountant prepare your documents
When you apply for equipment leasing, you will need to submit financial statements showing that you have the means to pay for the equipment if it’s lost, stolen, or damaged. By having an accountant prepare those documents on your behalf, you can ensure that they are accurate and lend more credibility to your application.
Audited financials can help you get approved for Equipment Leasing
Likewise, by having your financial statements professionally audited, you can greatly increase your odds of being approved for equipment leasing. Generally speaking, anytime you can have a third-party objectively audit your finances, it will be to your benefit in the eyes of the lender. This is especially true if the audit was done by an established accountant or firm. So be sure to hold on to any of your company’s previous tax returns as these can be a great asset when applying for credit facilities, such as leasing or financing.
Providing the correct information and details about your business
Another important and often overlooked aspect of a leasing application is your business information. So, when applying for equipment leasing, always ensure that you provide accurate and up-to-date information, as this will be required in order to verify your company’s assets and finances.
Create a business plan with projections if the business is new
Many people assume that if their company is new, then they won’t be approved financing. This is not always the case. By preparing a detailed business plan that includes future projections, you can significantly increase your odds of being approved for equipment leasing.
Show how the new equipment will be beneficial to your business
By explaining how the equipment you intend to lease will help your business generate new or more revenue, you will be able to increase your odds of being approved for that particular equipment.
Provide Corporate or Personal Guarantees
Providing some sort of personal or corporate guarantee in writing can also work to your advantage when applying for equipment leasing. This is because the lender will have something in writing should you default on the agreement. Having another company vouch for you can also be an asset on your application.
Showcase your experience
It also helps to demonstrate your expertise in your particular industry. By preparing a list of your clients and showing the lender that you have regular customers, you can again improve your odds of being approved for equipment leasing.
Where to lease equipment in Canada?
There are many different companies that provide equipment leasing services to businesses in Canada. However, most of those lenders require all of the documents mentioned above, and possibly even more. Equipment Finance Canada is one of the most trusted sources for equipment leasing. EFC specializes in helping businesses get approved for new equipment when other lenders say no.
So, if you need to lease some new equipment for an upcoming project, or to help your business get off the ground, then be sure to get in touch with Equipment Finance Canada today. The experts at EFC will be able to help you through every step of the application process. They offer competitive rates to help your company grow and succeed.
Purchasing equipment is expensive, and as such, it pays to shop around. Oftentimes, the best way to secure a great deal is leasing equipment from a private sale, either second-hand or through an independent seller, as opposed to buying new or directly through a vendor. But banks typically don’t finance private sales. Fortunately, there is a solution that allows customers to secure financing for equipment purchases through private sales, and that’s what we’ll be looking at in this article.
Keep reading to learn:
What a private sale is
The pros and cons of private sales
The precautions to take when buying privately
How to lease equipment from a private sale
And much more
What is a Private Sale?
In simple terms, a private sale is when you purchase something from another person rather than from a company. Buying used equipment or finding equipment for sale through classified sites like AutoTrader and Craigslist are great examples.
The Differences Between Leasing Equipment From a Private Sale and Leasing from a Vendor
There are some key differences between buying privately and buying from a vendor. For starters, when you buy privately, you’ll almost always get a much better deal. However, when you buy equipment in a private sale, it may not be in perfect condition, and it can sometimes be difficult to secure financing for private sales. That said, it’s very possible to find like-new equipment for a fraction of the normal price when purchasing via a private sale, and there are financing options available if you know where to look.
The pros and cons of leasing equipment from a private sale
There are definitely some pros and cons to consider when deciding whether you want to buy privately or through a vendor, let’s look at them now.
Pros
Prices are often negotiable
When you purchase something through a private sale, you can usually negotiate the price, whereas when you buy from a store, retailer, or other vendors, the prices are usually firm.
You can find a better deal
In almost all cases, you’ll be able to save a ton of money when purchasing your equipment privately rather than through a vendor. Sometimes you can even source equipment for half the price that it would cost when buying from a traditional outlet.
Equipment is often like new
Many people think that buying privately means getting subpar equipment, but in many instances, this is simply not the case. Very often, private sellers are looking to off-load gently used equipment that is almost brand new and is in perfect working condition.
There is no tax to pay
When you buy equipment through a private sale, you won’t need to pay sales tax, which in some cases can amount to thousands of dollars saved.
Cons
Equipment may be damaged
It’s true that sometimes, disreputable sellers may list damaged equipment for sale in hopes of recuperating their money on the equipment. As such, it’s important to protect yourself when purchasing privately, and there are a number of ways to do that, which we will look at momentarily.
A warranty may not be included
More often than not, when you purchase equipment privately, it will not include the original warranty, which means that repairs will generally need to be covered out-of-pocket. However, sometimes a portion of the original warranty will still be in place and can be transferred over to you as the new owner.
The precautions to take when purchasing from a private sale
As mentioned, some private sellers list damaged equipment for sale, so when buying privately, it’s always wise to exercise due diligence and do your homework before going through with the purchase. Let’s go over a few of the ways that you can protect yourself when purchasing equipment from a private sale.
Overall condition of the equipment
You should always inspect the overall condition of the equipment before you buy it. Simply put, you should never take a private seller’s word that their equipment is in perfect working condition; the only way to ensure this is by testing and inspecting the equipment yourself.
Inspection reports
Always ask to see any available inspection reports for the equipment you’re considering before handing over your money. If no inspection reports are available, then that’s a red flag that could indicate something isn’t quite right with the sale.
KMs and Hours
Be sure that you consider the mileage or hours before making a purchase. Vehicles and other pieces of equipment that have high mileage are much more likely to require costly repairs in the immediate future.
Private sales can be leased by Equipment Finance Canada
If you find a great piece of equipment and would like to purchase it through a private sale but don’t want to invest all of the money upfront, then you’re in luck. Equipment Finance Canada can help you finance equipment purchases from private sales, and there are a number of excellent advantages you’ll enjoy when financing through EFC.
Why lease through Equipment Finance Canada
Equipment Finance Canada helps businesses and individuals with leasing equipment from a private sale. Let’s go over some of the best reasons to finance your equipment through Equipment Finance Canada when buying from a private seller.
Local banks do not specialize in private sales
In most cases, your local bank or credit union will not help with financing a private sale. The same goes for equipment leasing and equipment financing. Simply put, it’s almost never possible to finance used trucks / used equipment through a traditional lender. That’s where Equipment Finance Canada is different. We help people finance the equipment they want regardless of who’s selling it.
We have a wide variety of lenders who are willing to fund private sales
At Equipment Finance Canada, we take pride in having some of the best lenders anywhere. We have a large network of lenders who are willing to fund private sales, and almost always at very competitive rates.
We can pre-approve buyers
When you want to finance equipment, it helps to know what your budget is. At Equipment Finance Canada, we pre-approve buyers so that they can search for equipment that they know they’ll qualify for.
We are able to pay sellers directly
Unlike most traditional lenders, we pay sellers directly so that you never have to worry about handling a large cash transaction yourself. Simply file your application, get pre-approved and let us know what you’d like to buy and from whom; we’ll take care of the rest.
We ensure equipment is free and clear
To further assist you when buying equipment from a private sale, we personally ensure that the equipment is free and clear, that there are no liens on the equipment, and that everything is above-board, which can save you a ton of problems down the road.
Summary
Purchasing equipment from a private sale is a great way to get the equipment you need for a fraction of the price you’d pay to a vendor. That said, it’s important to do your homework when buying privately, but as long as you inspect the equipment yourself, this can be a great cost-effective means to acquire the equipment you want without breaking the bank. Traditional lenders often don’t finance private sales, but Equipment Finance Canada can help. So, if you want a equipment lease from a private sale, then be sure to contact EFC today to learn more or submit an application.
