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What is a Simple Interest Contract?

 

From contracts to complex legal documents, the process of buying a commercial vehicle can quickly become intimidating for any customer. Luckily, there are dealership financing options created to meet the unique needs of the trucking industry and make the process of getting a loan as seamless as possible. By offering simple interest contracts, acquiring financing and paying it back can be easy and uncomplicated for owner operators and dealers. Here is how simple interest contracts can make dealership lending mutually beneficial for dealers and their customers. 

What is a Simple Interest Contract?

With a simple interest contract for commercial lending, customers have the chance to accrue little interest by paying their loan back in a quick an easy manner. Simple interest contacts calculate interest daily, based on what is still owed on the loan.

When a customer makes a payment on the loan, their money first goes to the interest that has accrued that month. The rest of the payment then goes toward paying the principle of the loan. If the customer is able to pay off the interest each month without fail, that interest will not accrue for the next month. On the other hand, if the interest is not paid by the end of each month, more interest will accrue on top of the interest from last month, which is known as compound interest. This means if payments are not made on time, the customer runs the risk of building up compound interest. This compound interest could mean the final payment of the loan is far higher than what was projected when the contract was first signed. However, it also means that if payments are made on time or earlier, the final payment could be even less that what was originally projected.

The Difference Between Simple Interest and Precomputed Contracts

Since interest is calculated daily, and simple interest contracts give customers the opportunity to only pay interest on the current balance of their loan. This means interest amounts will get smaller as your loan is paid down.

However, with the precomputed interest method, the only number used to calculate interest is the amount of the loan at the time the contract was signed. This means there is no way to change the amount of interest you will need to pay. Even if you choose to pay down your loan faster than scheduled, you will not be able to reduce the interest amount like you would with a simple interest loan.

The total payment can vary greatly between a precomputed loan and a simple interest loan if you choose to make early or late payments. However, if you make all payments exactly on time, there is little difference between the two contract types.

Products Included in Simple Interest Contracts

Simple interest contracts vary, but Mission Financial provides more than just financial independence. Our contracts come with a variety of perks to keep you and your investment safe on the road. These products can be bundled into any contract to help you drive with confidence.

Mission Auto Protection

Every simple interest contract through Mission Financial comes with Mission Auto Protection (M.A.P.) A membership to M.A.P. offers truckers a variety of services to keep you safe and secure on the road. M.A.P. features include:

  • Roadside Assistance

If you experience a breakdown, M.A.P. will reimburse you for up to $200 of on-site labor. This can include repairs as well as the delivery of fuel, fluids, or parts. Roadside assistance does not cover the cost of parts or expenses from labor at a facility. 

  • Towing

M.A.P. will cover towing expenses from the site of a breakdown up to $200. The service covers only one tow per breakdown. 

  • Trip Interruption

If a breakdown occurs when you are further than 500 miles from home, M.A.P. will reimburse up to $300 for room and board while you wait for truck repairs. 

  • Lockout Services

In the event that you get locked out of your truck, M.A.P. will reimburse up to $50 in expenses for unlocking the vehicle’s door. 

  • Flat Tire

M.A.P. will reimburse drivers up to $50 dollars for tire repair services.

  • Battery Boost

If a battery boost is needed, M.A.P. will reimburse drivers up to $50 in expenses. 

TrüNorth™ Heavy Duty Coverage

Mission Financial has also partnered with TrüNorth™ to offer its customers coverage on their vehicles for 12 months or until the vehicle reaches 100,000 miles.

Benefits of Financing with Mission Financial

As a commercial driver, it is imperative to have reliable protection and coverage plans in the event of a break down, blown tire, or other incident on the road. With M.A.P. and TruNorth, truckers can drive with confidence knowing that a backup plan is already in place no matter what happens.

Mission Financial is a commercial lender people can trust. Not only does Mission Financial offer peace of mind through financial independence, but by ensuring that help is on the way when the unexpected happens.

Colleges Begin Launching Commercial Trucking Programs

 

Choosing a trucking school is the first big step to starting your career as a commercial driver. You want to make sure you pick a school that will prepare you and deliver the proper training for life on the road. This includes proper accreditation, experienced teachers and plenty of practice time behind the wheel. Previously, the only place to get semi-truck driving training was at a trucking school.

However, now it is easier than ever to find proper training thanks to community colleges across the country who are beginning to provide trucking classes at their facilities. Here is what you need to know about how community colleges are changing the way future truckers are being educated.

Community Colleges Offer CDL Classes

Previously, depending on location, students would have to travel to other cities to receive a commercial driver’s license. And because CDL courses typically last four to six weeks, it can add excessive extra cost on top of tuition expenses. Students often have to find lodging and spend extra money for food and necessities while away from home. Now, truckers-in-training can take courses in their area at their local community college. This gives more people access to training at an affordable cost without having to leave their families and homes behind.

Many of these community college programs offer added bonuses to make learning this industry even more attractive to young men and women. Some schools, like North Idaho College, have teamed up with driving schools to offer students a unique experience. In the case of North Idaho College, the partnership is with Spokane driving school Drive509. Because the partnership crosses state lines, students at the community college have the chance to qualify for CLD in both Washington and Idaho. This empowers students to broaden their search during their initial job hunt. As of March 2019, over 300 students have graduated from the four-week course, and many have gone on to earn starting salaries of over $40,000 per year.

Pros of Community College CDL Training Programs

While the addition of commercial trucking programs to community colleges will open doors for new young truckers, there are some pros and cons to consider before choosing which school is right for you. Community college programs are a great way to give more students access to quality training. However, not all courses are created exactly the same.

CDL courses at a community college are often less expensive than traditional trucking schools. And because they are not sponsored by a certain company, students are able to work for any trucking company they choose after graduation. Community college classes also often have more flexible hours. You may be able to choose to make morning, afternoon, or evening classes to work around your existing schedule, and weekend classes are usually offered. Community colleges can also offer truckers some of the same financial aid opportunities they can extend to students with a regular two-year curriculum. This can help you manage expenses and get on the road quicker.

Cons of Community College Commercial Trucking Programs

The flexible schedules of community college training courses may be convenient, but it also means taking longer to graduate than at a traditional trucking school. For instance, if you choose weekend-only classes, it could take many more months to complete the number of necessary classroom and driving hours to qualify for your CDL. While many CDL training schools can guarantee students jobs after graduation, many community colleges cannot make the same promise. However, many community colleges are able to offer job placement assistance, which can help in your search. The final con of community college is that the classes may not be offered all year-round. You may have to wait until the beginning of spring or fall semester to take the needed classes.

Future of the Freight Industry

The future looks bright for the commercial trucking industry. Thanks to more and more community colleges opening their doors to future drivers, it is now easier than ever to get quality training and launch your career. This new variety of schooling choices also allows future truckers to have more options than ever and find a school that is perfect for them. We look forward to seeing how education continues to change the transportation and freight industry. After you complete your CDL training, Mission Financial is here to help with all of your commercial lending needs.

How New Platooning will Make Trucking Safer than Ever

 

Excitement is building in the commercial trucking industry as people wait for the leader in platooning, Peloton, to announce the release date for its two-truck platooning system, PlatoonPro. In hopes of temporarily satisfying truck enthusiasts, the company released a list of the safety measures they have put in place to make sure their platooning technology will increase safety for truckers and other cars on the road. Here are some of the ways Peloton is ensuring their tech will make driving safer once it is released.

What is Platooning?

Platooning is a new way we are seeing artificial intelligence working in the trucking industry. This technology is a legal, digital way for a fleet of trucks to communicate with one another using a wireless internet connection. When the front truck brakes, the truck behind can automatically brake or slow down to avoid a collision. Reaction time is improved, allowing trucks to follow more closely behind each other compared to manual driving or cruise control.

Platooning is spreading rapidly thanks to the technology being adapted by numerous truck manufacturers. Companies now working to equip their trucks with platooning technology include Tesla, Volvo, Daimler Truck North America, and many more.  

Expanding Upon Proven Technology

In their article, Peloton states that its goal is to make platooning safer for truckers than ever before. That means the moment they hit the button to activate the platooning feature of their truck, their risk of collision or accident should decrease dramatically.

From safety systems to air disc brakes, Peloton’s goal is to not disable any preexisting technology when platooning is enabled. Instead, they are building upon these proven safety systems to make platooning even safer. They also plan to hold their trucks to a high standard with strict maintenance and inspection requirements that will ensure all trucks are in working order before hitting the platoon button.

How New Platooning is Increasing Safety

Apart from proven technology already found in commercial vehicles, the new platooning system will also add features not commonly seen behind the wheel of a semi. Features of Peloton’s new system will include:

  • Connected Braking

One of the biggest aspects will be the new vehicle-to-vehicle direct communication. This technology will be possible due to industry-standard digital short-range communications (DSRC.) This will allow two trucks to accelerate, slow down, and brake together. With this technology, truckers will be able to follow closer than ever before without having to worry about reaction delay. This will decrease fuel consumption, allow for more space on the highway, and make driving easier and safer.

  • Platoon ProXimity Dissolve

Platoon ProXimity Dissolve will use camera sensor data and radars to gage traffic conditions in front of the leading truck during a platoon. In case traffic becomes too dense, or if a car cuts in front of the lead truck, the following truck automatically slows down to create more space. This allows all drivers to avoid any situations that may require hard and sudden braking during a platoon.

  • Platoon Dissolve

Platoon Dissolve allows the following driver to manually dissolve the platoon. With the follow-truck system, the driver can slowly increase the gap between the two trucks until there is enough space to safely start controlling the brake and accelerator pedals.

  • Display Awareness Video and Info Display

To help the following trucker have a better understanding of what is going on ahead, PlatoonPro features an Info Display in the dash. This display will provide a live video feed from a forward-facing camera in the lead truck, so following drivers will be able to see changing road conditions, upcoming traffic, ramps or bridges, and any other objects up ahead.

  • Voice Communications

To help promote efficient communication and teamwork between drivers, the new platooning system is equipped with a hands-free driver-to-driver radio that can be activated with a foot pedal. This will help with synchronizing lane changes, upcoming road changes and when to dissolve a platoon.

  • Cybersecurity

Because platooning systems could potentially be hacked or tampered with from outside sources, it is important that these systems have top-notch cybersecurity to keep truckers and surrounding drivers safe. This system has been highly tested to prevent hacking and will immediately dissolve if a system becomes jammed.

Future of Platooning

Platooning is still in its early phases and requires more research before all 50 states will allow it. Only half of the U.S. currently authorizes the technology, but companies like Peloton are embracing industry standard testing. Substantial in-lab and track testing must be done first before moving on to on-road testing in order to maximize safety standards. As more and more companies continue to do this, then more states will continue to change their laws.

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