Buying Your First Truck: Financing vs Leasing

Buying Your First Truck: Financing vs Leasing

If you’re thinking about making the jump from being a driver to an owner-operator or starting your own trucking company with yourself at the top, getting your first truck is a major hurdle to overcome. With most large commercial vehicles costing six figures, you probably won’t be paying out of pocket.  One way or another, you’ll almost certainly need assistance buying your first truck.

One option is a traditional bank loan for vehicle financing, or you could work with box truck lease companies instead, and you have a couple of options there. Let’s look at the differences.

Buying Your First Truck: Financing vs Capital Leases vs Operating Leases

I. Financing

The first and most obvious option is to go to a bank for a vehicle loan and finance the truck much like you would a personal vehicle. This is the most simple and straightforward option. The truck becomes your property once the deal is set and remains yours if you make the payments.

The big X factor is your credit rating – and first-time truck buyers often don’t have the best credit. The worse your credit is, the more you’ll be paying in interest – potentially up to 30%.  Also, you will likely have to provide a significant down payment.

II. Capital Leases

A capital lease is similar to financing, except that you’re dealing with the box truck leasing companies directly rather than going through a bank.  You are considered the legal owner of the truck once you begin leasing, and you pay the value of the truck through monthly payments. At the end of the lease term, the truck becomes yours.

Your credit rating still impacts your leasing terms, but potentially not as much. Zero-down leasing is also often an option.

III. Operating Leases

Finally, there are operating leases, but be aware – this is functionally a rental. The truck does not become your property and will be returned to the original owner at the end of the lease period. However, this is the easiest option to qualify for. Also, you will end up paying less money than you would in a capital lease, typically saving around 25% of the truck’s value, compared to lease-to-own options.

This doesn’t gain you assets, but it can be an effective way to get a new trucking company off the ground at the lowest up-front cost.

Lease Your Box Truck Today

C&M Motors offers highly competitive terms and rates for leases on new Hino trucks! Click here to learn more about our leasing programs.

Overcoming Commercial Truck Fleet Challenges

Overcoming Commercial Truck Fleet Challenges

While most businesses focus on reducing costs and increasing profits, let’s take a little closer look at the challenges faced by business owners running a small fleet of commercial vehicles.

Reducing Costs

For those business owners, reducing costs can be tackled several ways. Costs can arise from rising fuel costs, fines due to lack of compliance with Motor Carrier Safety Regulations, and accidents. Fleet scheduling efficiencies which include right sizing your fleet to meet the demands of your clients is a way to avoid some of these costs.

Fuel Costs

Fuel cost began a fairly sharp rise in around 2004, where the average price of fuel was just over $1.50 per gallon. That climb topped in the summer of 2008 where fuel was over $4.10 per gallon. By the end of 2009, the fuel prices dropped back to just over $1.70 per gallon where they began yet another climb to nearly $4.00 per gallon again. In the past couple years, prices have fluctuated from $2 to $3 per gallon on average, nationwide, all formulations of retail gasoline and diesel.

Planning for those prices changes is a challenge and the costs vary depending upon the number of commercial trucks in your fleet. The good news is that powerful, electric technology is helping to minimize and/or eliminate the need for diesel powered trucks.

That’s why C&M Motors has partnered with SEA Electric to help you overcome the unpredictable costs of fuel. These exciting new electric trucks will deliver power and efficiency, and even help reduce maintenance costs. Overall, the cost of ownership is well worth the investment.

Accidents

Accidents involving your fleet drivers can be a huge expense to your business. These expenses come not just from the costs of truck repair, but also in loss of productivity, damage and worker comp claims, insurance increases, and potential lawsuits. Equipping your fleet with the latest safety equipment such as automatic braking, backup cameras, and telematics are a great way to reduce these risks.

Right Sizing and Maintaining Your Fleet Vehicles

Another way to keep costs in line is through good fleet management and having a fleet that keeps your committed deliveries on time without having too many idle vehicles. Another important aspect is vehicle maintenance. When your fleet is well-maintained, there are less unexpected failures and the need for extra trucks is minimized. Having a good partner for fleet maintenance can help you run a profitable operation. C&M Motors offers HinoCare, a planned maintenance program to help you stay on schedule and on budget.

Why C&M Motors

C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors.

Give us a call to learn more.

 

C&M Motors Inc

www.cmmotorsinc.com

(800) 736-3443

Hino Trucks is Cranking Up Production

Hino Trucks is Cranking Up Production

Hino Trucks is gearing up its production of 2022 model year trucks for the US. These Class 6-8 trucks will be powered by diesel engines supplied by Cummins Inc. The new Hino L Series trucks will be available toward the end of 2021 and will be offered with 240 HP and 260 HP rated engines from Cummins. The XL Series model will roll out in 2022 with the Cummins L9 engine in three engine ratings 300 HP, 330 HP, and 360 HP.

Production of these new trucks will begin in Hino facilities in West Virginia and Woodstock. Hino and Cummins plan to evaluate additional opportunities to collaborate in the future.

Project Z Development Accelerates

Hino is using this opportunity to redirect development and engineering resources toward Project Z, the company’s battery-electric vehicles (BEV) zero-emissions vehicles (ZEV) projects. The plan is to begin production of the BEV models in Q4 of 2022 and ramp up production from there.

This is especially welcome in California, where vehicles are being incented to move away from fossil fuel powered toward low and zero emission electric in order to reduce the greenhouse gas emissions.

HVIP (Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project) is preparing to open to new voucher requests later this spring. Stay tuned for updated information on this excellent incentive program.

Also, South Coast AQMD offers financial incentives to replace older heavy-duty diesels with cleaner technologies. You can learn more about this program HERE.

Why C&M Motors

C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors.

Give us a call to learn more.

 

C&M Motors Inc

www.cmmotorsinc.com

(800) 736-3443

Why Electric Trucks are Better

Why Electric Trucks are Better

Electric trucks provide reduction in greenhouse gas emissions which is especially beneficial in an urban setting. In fact, electric trucks have been shown to cut greenhouse gas emissions by a third or more over diesel trucks.

Other Benefits Electric Trucks Offer

Less Noise.

While this seems obvious, why is this a benefit? Lack of noise means they can operate at times when a diesel truck cannot. This can provide a significant benefit to businesses operating in congested urban areas with evening noise restrictions.

Regenerative Braking

An electric truck has a highly efficient drivetrain and offers energy recovery during braking. When measured together, the regenerative braking and super-efficient drivetrain can lead to about five times higher efficiency for an electric truck.

Alternate Energy Sources

If you drive a diesel truck, there is only one way to fuel your truck. Diesel. If you invest in an electric truck, you have more options. You can charge your electric battery with standard plugin, paid-for electricity OR you can invest in solar for your company which would significantly drive down the cost of operations for your fleet.

Why SEA Electric and C&M Motors

SEA Electric was founded in Australia in 2012 and has been providing outstanding automotive technology for many years. In 2017, SEA Electric launched its first all-electric power-system that can be added to the truck chassis of your choice. These electric engines are the world’s most cost-effective solution for the commercial market. Zero emissions, super quiet, and a powerful, smooth ride.

C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors.

Give us a call to learn more.

 

C&M Motors Inc

www.cmmotorsinc.com

(800) 736-3443

Expanded Used Truck Inventory

Expanded Used Truck Inventory

We are expanding our used truck inventory at C&M Motors, with the local business owners in mind. The climate of the country during COVID has meant businesses operate on thinner margins, which includes purchasing new vehicles. Acquiring a quality used commercial truck makes sense. Many can be eligible for extended warranties from Hino, which only enhances the used truck prospect.

Now available at C&M Motors, an exceptionally clean 2016 Hino 268A 26″ dry box van. This truck has only 135,635 miles and is in great condition. Also just in is a 2018 Hino 195 16′ dry box van with only 54,453 miles. We have completed a thorough inspection of these trucks to ensure they are safe and sound vehicles. Both include a lift gate and rear roll-up door. C&M also has a complete custom truck fabrication department that can add custom boxes or other components tailored to your business requirements. We have other used commercial trucks as well as truck bodies on our used trucks page.

C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors. Contact us if you have any questions regarding used trucks, new trucks or our service department. We look forward to hearing from you!

 

 

C&M Motors Inc

www.cmmotorsinc.com

(800) 736-3443

Espanol / English »