5 Tips before Buying your First Semi-Truck

1. Do your due diligence

Analyze the facts. If it is coming straight from a dealer, then paying a local mechanic or inspector to come into the dealership and do a full 60 point inspection will always save you money. Once you have the exact details of what needs to be replaced from the jump, it gives you more bargaining power on the ticket price of the unit.
Some personal points of view are as follows. Take the precautions heavily but in my opinion with a grain of salt.
If it‘s from a direct seller, make sure you get a diagnostic link inspection as well. It‘s the closest you’ll come to a history of the units problems or upcoming problems in the next 100,000 miles. Whether the seller is stating he just wants to get out of the industry or they are in a bind, never let anyone rush you into buying a used truck. Check the upholstery and whether you see any rust in major components such as the leaf springs or even the rims themselves from use. This is a big tell showing how well the previous owner has been taking care of the unit. If they have chipped paint and rims that are rusted then I guarantee they’ve been only patching issues from the start rather than replacing with brand new parts as needed. Test driving a unit is also a necessity when buying used equipment.
If a used unit has a different color hood, then you can assume it has been in an incident. Always check for a clear title and always look behind the hood and fenders for any discoloration to ensure they did not just paint over the incident.

Welding on the frame and you’re out of the game. If the truck has a cracked frame then I would not waste my time starting my company with it unless I want a big target on my back when it comes to the DOT. Other than your standard thorough DOT and mechanical inspection also ensure the title of the unit is clean if you are not buying this truck from a dealership (Which I recommend for first time buyers due to the agreeable discounts on parts from the dealership as well as financing capability).

If you’re buying a brand new unit right off of the lot you are signing a 5 year contract. This enables some peace of mind however, you will still have mechanical problems with a brand new unit as no truck is made perfectly.

One great saying is, “Fleets never sell working trucks, they sell their problems.” So always realize and expect that a company will sell you their worst trucks to get them off their books.

2. Set up your hedges

Trucking is risky, especially when starting with a used truck. There will always be something happening to either yourself, your driver, your workflow, or the truck itself. It is always best to set up some assurances beforehand to make sure you have the greatest chance possible to make a profit. If you always have an expect the worst and hope for the best attitude your realism will be rewarded. Being proactive is the key to staying consistently successful in the trucking industry especially from the jump.

Most veterans in the industry realize that you cannot make any money if your truck is parked. Every day that your wheels are not turning, another day of profit is lost. So to ensure this does not happen, you must first network with local shippers that are focused in your trade of business. It all depends on what trailer type you are using.
Signing up for freight load boards is also key to your success in starting out. I suggest www.Dat.com which is most popular for freight brokers to use. This will also accustom you to any trends in the industry and show you where the hottest markets are inside of the U.S. If there are any memberships to have, it should be this one due to the necessity of needing a stable stream of loads.
Before your truck runs its first mile as well, another hedge to set is a fuel account. I personally recommend running with Pilot directly but, whichever company you choose, you’ll receive a discount on your fuel which adds up by the end of each month. Join a tire and mechanic program as well to ensure your downtime is set to a minimum.

3. Have an emergency fund

There’s an old saying I always live by that states trucking makes you lose hair. You must follow Murphy’s Law (Things will go wrong in any given situation, if you give them a chance.) Understand that even when buying a brand new truck you can run into mechanical issues. Have that emergency fund and constantly build it up. Trucking is high risk but, a high reward game. This will increase your chances of not only being successful but more importantly consistent. Trucking is a competition for who can last the longest. You will see others come and go but the ones who are investing in their own futures and emergency funds will be the owners who succeed in the long run. This lesson also is practiced throughout your owners journey for example: the load you get for over $4 a mile is the one that needs to be saved in order to ensure your clutch can be replaced in the coming months.

4. Industry knowledge is power

Most of the time an experienced CDL driver is the one making the move to buy their first unit. You will know the roads like the back of your hand from I-10 through California to I-90 through New York although owning a company is another beast. This is specifically why I have created this blog, future owners should not be rolling with the punches with third party fees and contract clauses on their bank notes or government requirements. You need to be ahead of the pack when it comes to what can stop your truck from making money. Spend. time. reading. https://www.fmcsa.dot.gov/regulations is a huge help when it comes to knowing your rights and requirements as an trucking company owner. If your IFTA (International Registration plan), is not up to date and paid for then I guarantee you will be stopped at the first weight station you pass and be put out of service with the only option being a tow to the local impound lot.
Know to keep strict accounts of where your money is going and what fees factoring companies and fuel accounts are charging along with your initial note when buying the semi truck itself. Study the local market and where you will be headed in order to get the best chance at receiving the rate you require to continue business.
Research the best factoring companies of which to create the relationship with. Always know that the rate is not the only thing to go off of because factoring companies can charge many other service fees hidden inside of their contracts. I Recommend https://otrcapital.com of which are at a higher initial factored rate but are guaranteed transparency which is one thing that is rare in the trucking industry.
Companies charge for this knowledge. I have learned the hard way getting burned constantly from people I gave the chance to (emphasis on Murphy’s law once again.)

5. Be Prepared

Trucking is not something you will take lightly. This is not a get rich quick scheme to where truckers are making a high dollar with every mile they run. It is a cutthroat environment where everyone wants a piece of your profits and other companies want your line hauls and will take it from you if given the chance.
I do not recommend buying a truck as a hobby or with the thought of just sending it to work and not worrying about any other details. This is not real estate.

If you take it this seriously and are ready for an investment not only in a truck but in yourself, then I recommend nothing more than to follow the previous steps. Good luck.

Andrew Gomez
Andrew@AJGTransport.com