- October 12, 2021
- Posted by: Sergey Grushetskiy
- Category: Semi Truck Financing
Being an owner-operator gives you the most freedom and flexibility as a trucker, but for many drivers, owning their own truck might seem like it’s out-of-reach. Most truck drivers don’t have the resources to purchase a truck outright, and this is where owner-operator truck financing comes into play. Financing allows you to own your own truck and make payments on it that fit into your budget. Here are some of the benefits of owner-operator financing.
More Money Available for Your Business
When you’re an owner-operator, you’re running your own small business, and that means you’ll need to cover your own expenses. If your truck needs repairs, you’re responsible; if you get sick and need to take time off of work, there’s no sick pay. Investing all of your savings in your truck leaves little left for those unforeseen expenses all small businesses face.
Financing your truck leaves you with money in the bank. You decide how much you can afford for a down payment and how much you want to spend on monthly payments. Small monthly payments mean you’ll have the cash on hand to grow your business, rather than scrambling to pay for unexpected expenses.
Your truck is considered a business asset, which means that when you pay taxes every year, you can write off the annual depreciation against your profit. You can do this even before you pay off your truck loan.
Interest on auto loans is deductible when a vehicle is used for business; your CPA can advise you as to whether this is an option in your case. These tax benefits are valuable for any small business, especially as they grow and become more profitable.
Benefits of Ownership
Just like with a personal vehicle or home, your truck is yours to use however you like, even before you’ve paid off your loan completely. You can drive as many miles as you want, make any changes you like, get it repaired by your choice of mechanic, etc. This, too, gives you more freedom and flexibility than you’d get from leasing a truck.
Owner-Operator Financing Is Designed With Your Needs in Mind
You could go to your bank to get a personal loan to use to pay for your truck, but it’s unlikely that your bank will be knowledgeable about the trucking industry. At 10-4 Financing, working with the trucking industry is our specialty, so we have in-depth knowledge you won’t be able to find with other lenders.
In fact, we’re more than just a lender—we’re a resource. We can help you find a truck, secure financing even if you have bad credit or past bankruptcies, and advocate on your behalf to get you the best possible rates and terms. Our underwriters look beyond your personal finances and also take into consideration your business prospects.