News

Why Proactive Risk Management Is Key for Today’s Lenders

Financing is critical for keeping drivers and fleets on the road, and lenders play a central role in making that possible. But with regulations growing more complex and fuel prices swinging unpredictably, lenders can’t afford to take a wait-and-see approach.

Proactive risk management (identifying risks early and embedding safeguards into lending operations) is no longer optional. It’s what allows lenders to navigate an industry where the rules and risks are changing by the month. Understanding what’s changing, why it’s happening, and how it shapes the way lenders make decisions is the first step to staying ahead.

The Evolving Risk Landscape And Technology’s Role

The Federal Motor Carrier Safety Administration (FMCSA) is overhauling its Safety Measurement System (SMS) – the framework used to track violations and prioritize carriers for enforcement. Starting in 2025, violations will be grouped into categories, with scoring based on a 12-month window. For lenders, this means safety performance will be tracked more tightly, and borrowers with poor safety scores could face higher commercial trucking insurance costs or operational disruptions that increase loan default risk.

MC Numbers Retired in Favor of USDOT Identification

Another significant change is the phase-out of Motor Carrier (MC) numbers. By October 1, 2025, carriers, brokers, and freight forwarders will operate under USDOT numbers only, streamlining identification and reducing fraud.

This change affects permits, contracts, insurance, and compliance systems, which must be updated to use USDOT numbers exclusively. Although the phase-out is firm, the first URS release will allow existing MC numbers to remain valid, and the “suffix” system for types of operating authority will be introduced gradually.

Driver Qualification Rules Tighten

Driver qualification rules are tightening as well. Since late 2024, the Drug and Alcohol Clearinghouse requires state licensing agencies to downgrade commercial driver’s licenses (CDL) for drivers with unresolved violations. Borrowers who fail to maintain a valid CDL create heightened risk for lenders, which is why ongoing license verification is an essential part of responsible lending practices.

Equipment Mandates on the Horizon

The National Highway Traffic Safety Administration (NHTSA) is considering an Automatic Emergency Braking (AEB) requirement for new Class 7 and 8 trucks. The federal proposal estimates incremental per-vehicle costs of $716–$1,083 to equip new heavy vehicles with AEB.

Technology Steps In as a Safeguard

Technology is becoming a frontline defense for trucking lenders. Automated compliance engines, digital documentation and e-signatures, and fraud-detection tools help ensure contracts meet state and federal rules while reducing errors. Telematics and connected vehicle data also give lenders visibility into asset use and borrower performance, allowing risks to be identified and addressed before they escalate.

Compliance As The Foundation Of Risk Management

Responsive compliance is no longer enough. In 2025, lenders are expected to embed compliance into every stage of the loan lifecycle. A strong program includes:

Automate regulatory integration: Leading lenders use loan origination systems that update in real time to reflect mandates like the FMCSA Safety Measurement System overhaul, the Clearinghouse CDL downgrade rule, and proposed equipment requirements such as AEB.
Map asset-level compliance: Responsible lenders track whether financed trucks meet equipment standards, confirm active USDOT numbers as MC numbers are phased out, and keep fleet records current.
Verify CDLs digitally: Strong compliance programs connect directly to the FMCSA Drug & Alcohol Clearinghouse to confirm borrowers maintain valid licenses before loans are issued or renewed.
Monitor safety scores: Lenders that review borrower SMS ratings under the updated 12-month scoring system can intervene early, thereby reducing the risk of defaults triggered by enforcement actions or higher insurance premiums.
Disclose clearly and proactively: Proactive lenders explain regulatory impacts to borrowers upfront – for example, how the potential costs of AEB requirements could affect repayment schedules or loan terms.

By moving beyond reactive fixes and treating compliance as an ongoing, technology-enabled process, lenders demonstrate stability and reliability. For borrowers, that means working with partners who anticipate challenges, protect portfolios, and build long-term trust.

How Strong Lenders Manage Risk In 2025

Proactive risk management in trucking finance is about turning abstract risks into concrete, manageable steps. Good lenders put strategies like these into practice to protect portfolios and support their borrowers.

Keep Contracts Flexible To Prevent Losses

Flexibility can be the difference between salvaging a loan and writing off a loss. Leading lenders may:

Adjust payment schedules: When fuel prices rise sharply, some lenders shift borrowers from fixed monthly payments to a per-mile structure that better aligns with revenue flow.
Include early exit clauses: Loan agreements may allow buy-outs or refinancing when market or regulatory conditions shift, keeping borrowers from defaulting when circumstances change.
Offer grace periods for seasonal operations: Agricultural haulers and other seasonal carriers often experience predictable swings. Lenders that account for these cycles in repayment schedules reduce delinquency risk.

Build Protections Into Every Loan Agreement

Contracts are a lender’s first line of defense against fraud and compliance failures. Strong lenders typically:

Add cybersecurity and fraud provisions requiring multi-factor authentication for digital portals and shifting liability if borrowers fail to safeguard access.
Apply dealer verification protocols by checking licensing status, financial stability, and prior performance before funding loans tied to dealer sales.
Mandate insurance compliance clauses that require active liability, cargo, and physical damage coverage, with penalties or auto-default triggers if coverage lapses.

Catch Issues Before Defaults

The best lenders don’t wait until a borrower is in trouble to act. Rather, they use tools that protect both their portfolio and their customers. For example, they may:

Use telematics to confirm financed commercial trucks are being operated as expected, which helps keep loan terms fair and accurate.
Automate insurance tracking so drivers get reminders before a policy lapses, preventing costly coverage gaps.
Run periodic financial check-ins to identify strain early and offer restructuring options before a missed payment turns into a default.

For borrowers, this means working with a lender who is proactive and committed to long-term relationships, not just collecting payments.

Stay Connected to the Industry

Good lenders know what’s happening in the industry, with close connections to American trucking associations and other organizations. These partnerships give lenders early insight into regulatory changes, market trends, and best practices.

For borrowers, that means working with a lender who understands what’s coming down the road and can adjust loan programs to match industry realities, rather than reacting after it’s too late.

Conclusion

In the trucking industry, risk will never disappear. But it will continue to evolve. That’s why the best lenders treat compliance, technology, and proactive strategies as essentials, not extras. By embedding safeguards, anticipating challenges, and staying flexible, they protect their portfolios while building long-term trust with the drivers and businesses they serve.

At Mission Financial Services, we put these best practices into action every day. We work to reduce risk for our customers and keep financing simple and reliable. That’s why truckers across the country trust us when it’s time to finance their next commercial truck.

Ready to move forward with confidence? Start your credit application today.

Cass Transportation Indexes July 2025: Freight Volumes Decline and Tariffs Hit Hard

The July 2025 Cass Freight Index confirms what many drivers have already felt: loads are lighter, costs remain stubborn, and tariffs are reshaping the market.

For semi-truck owner-operators, small fleets, and first-time buyers, the combination of weaker volumes and higher costs is pushing margins thin – and making access to reliable trucking financing more critical than ever.

July 2025 Cass Index Reveals Freight Slowdown

According to the Cass Freight Index report, shipment volumes fell 1.8% month-over-month and 6.9% year-over-year, marking the steepest annual decline so far in 2025.

While volumes retreated, expenditures only slipped 1.5% from June and actually ticked up 0.4% compared to July 2024, showing that carriers are still paying nearly the same for less freight.

The real standout is the “inferred freight rate,” calculated by dividing expenditures by shipments. In July, this metric jumped 7.9% year-over-year, meaning the cost per unit of freight rose sharply even though volume shrank.

Analysts from ACT Research, which partners with Cass on index analysis, describe it as an “air pocket” in demand worsened by tariffs and uneven inventory cycles.

Tariffs Intensify Pressure on Trucking Costs

The July report makes it clear that new tariffs introduced in 2025 are magnifying the strain.

Tariff increases, including a 25% duty on most goods from Canada and Mexico, plus tariffs on Chinese imports that have increased from 10% to 20% retroactively, have reverberated across supply chains, disrupting pricing and sourcing strategies.

Some shippers pulled freight forward earlier in the year to beat tariff deadlines, leaving a mid-year demand slump in their wake.

Tariffs also raise costs beyond freight demand. Higher import prices mean more expensive replacement parts, tires, and even new trucks, squeezing owner-operators already contending with volatile diesel prices and elevated insurance premiums.

As Cass notes, freight demand is weakening at the same time operating expenses remain high – a double hit for small commercial truck carriers.

What Declining Freight Means for Small Carriers

For large carriers, diversified contracts and stronger shipper relationships provide some cushion. Conversely, the July Cass Index depicts a harsher scenario for independent drivers and small fleets:

Fewer load opportunities: With shipment volume down nearly 7% year-over-year, competition intensifies for every available haul.
Rising cost per mile: Even as freight spend softens, higher inferred rates reflect modal shifts toward truckload, leaving small carriers paying more to move less.
Cash flow uncertainty: Reduced freight options can delay truck payments, repairs, and insurance premiums – critical obligations for small operators.
Tariff exposure: With imported equipment and parts becoming more expensive, repair costs climb at the worst possible time.

These pressures are especially acute for first-time buyers or drivers with limited credit history. Without steady access to capital, even one unexpected repair bill or fuel price spike can take a truck off the road.

Financing as a Lifeline for Owner-Operators

This is where Mission Financial Services becomes a critical partner. While banks and traditional lenders may tighten credit in soft freight markets, we continue to provide tailored solutions for drivers often overlooked elsewhere.

With approvals in as little as four hours and consideration for credit scores as low as 460, Mission Financial Services supports:

Commercial Truck Repair Loans that reduce costly downtime when repairs can’t wait.
Small Fleet Loans for operators growing beyond one truck.
Bad Credit Loans and First-Time Buyer Loans that keep opportunity within reach, even with limited history.

By smoothing cash flow, ensuring trucks stay operational, and covering unexpected costs, financing becomes a lifeline for small carriers navigating downturns.

Practical Takeaways from the July Cass Index

The July 2025 Cass Index is more than a set of figures. It’s a guide for how drivers and fleets should respond in a shifting market.

Key takeaways include:

Prepare for tighter competition: With shipment volumes down 6.9% year-over-year, expect fewer freight opportunities and more carriers bidding for the same loads.
Track costs against revenue: Tariffs and inflation are driving up prices on parts, tires, and equipment. Using tools like the Cass Index to ensure you’re not hauling freight at a loss.
Protect your cash flow: In a downturn, steady access to working capital is just as important as finding loads. Flexible financing options, such as commercial truck repair loans or title loans, can cover expenses when income dips.
Plan with cycles in mind: Cass data shows freight markets move in waves, not straight lines. Positioning your business with a strong financial footing now ensures you’re ready to scale when demand rebounds.

Final Thoughts

The July 2025 Cass Freight Index tells a tough story: freight volumes are shrinking, tariffs are raising costs, and small carriers feel the pinch most. Yet downturns don’t last forever.

By combining smart load evaluation with steady access to financing, owner-operators and small fleets can stay in business today and be ready for tomorrow’s rebound.

Ready to keep your operation moving despite freight headwinds? Start your credit application with Mission Financial Services today, and get the financing support you need to stay on the road and ahead of the curve.

Cass Transportation Index Update for May 2025: Freight Volumes Decline

The Cass Freight Index by Cass Information Systems, in partnership with ACT Research, is one of the most reliable barometers for North American freight activity. It tracks monthly data for shipment volumes and expenditures across multiple transportation modes.

But the May 2025 report reveals trends of declining freight volume. The data paints a picture of an industry grappling with the aftermath of trade policy uncertainty and adjustments to inventory levels. So, what’s really behind the decline, and what does this mean for the trucking industry?

We examined all the facts behind the scenes to get to the answers.

May 2025 Cass Freight Index Freight Volume Trends

Shipment Volume Decline

The numbers in the May 2025 Cass Transportation Index Report are very telling.

In a month when domestic shipping volumes typically rise, May freight volumes contradicted seasonal patterns with a month-over-month (m/m) decline of 0.4%. The seasonally adjusted (SA) data indicate a 3.4% decline in the same period. The year-over-year (y/y) decline of 4.0% is a major source of concern.

The numbers highlight real-world challenges for small trucking operations.

The normal seasonal pattern for May usually sees freight volumes increase as retailers prepare for summer demand and manufacturers ramp up production. The data shows that the market is moving in the opposite direction.

This is partly due to destocking of pre-tariff inventory buildups and a shift from full truckload (FTL) to less-than-truckload (LTL).

Destocking Effects

A significant shift in inventory management strategies across industries is at the root of the decline. The ongoing trade disputes have had a variety of effects.

Pre-tariff consumer spending still supports freight demand. However, many businesses rushed to stockpile goods ahead of potential tariff implementations in late 2024 and early 2025. Because of this cautious inventory management and inventory build-up, companies must now work through the excess.

Pre-tariff inventory stocking has turned to destocking.

This reduces their current need for inbound freight across multiple sectors. This destocking trend is expected to persist through the summer months, creating ongoing challenges for fleet operators seeking consistent load volumes. But those excess stocks will eventually start to thin.

Freight Expenditures and Rate Dynamics

The Cass report presents a complex picture for the industry. An increase in spending, despite fewer shipments, reflects underlying rate pressures.

Expenditures Increase

The Cass Freight Index expenditures component for May 2025 indicated a rise of 1.4% m/m. This index includes changes in modal mix, intramodal mix, fuel, and accessorial charges. It’s more volatile than the Cass Truckload Linehaul Index.

The Cass Truckload Linehaul Index, which measures the ups and downs in truckload rates on a per-mile basis, fell 0.8% m/m in May, after a 0.5% decline in April. While load volumes remain challenging, the rates per mile or shipment are stabilizing.

Inferred Freight Rates

Cass Inferred Freight Rates, expenditures divided by shipments, rose 1.8% m/m in May, and 4.8% SA.

Freight rates are influenced by many factors, from supply and demand, seasonal trends, and regulations to fuel prices, interest rates, and even weather conditions. But in the current market, the main issue is an increase in expenditures despite fewer shipments.

The average cost of a shipment rose 5.0% y/y in May.

Modal Shifts and Market Implications

The inferred rate increase reflects both market conditions and changes in freight mix.

The mix is moving from LTL toward FTL, which is ordinarily a sign of an improving freight cycle. But in this case, it appears to have been influenced mostly by pre-tariff shipping. Shippers are consolidating loads to achieve better efficiency.

This modal shift creates distinct opportunities and challenges for different types of trucking operations.

Full truckload carriers with efficient operations that have made a savvy business investment in modern equipment may find improved pricing power as demand concentrates in the full load segment. However, operators in the LTL truckload market face reduced volumes.

Carriers adapt to these changes by adjusting their services and pricing. The shift also reflects inventory management changes. As companies move away from just-in-time models, they’re often willing to pay more for full truckload services.

This trend favors owner-operators and small, private fleets that can provide dedicated or semi-dedicated services to specific customers.

Economic and Policy Influences

The current freight market cannot be understood without considering the broader economic and policy environment shaping freight transportation demand.

Trade policies and tariff implementations have created significant uncertainty for businesses. Recent policy developments have particularly impacted freight volumes in import-dependent industries, which have had to navigate changing cost structures and supply chain risks.

The inventory buildups, followed by the current destocking phase, are a direct response to this policy uncertainty rather than underlying demand changes. And the broader economic implications extend beyond immediate freight demand.

As higher prices reduce goods’ affordability and consumers’ earnings, the current challenges facing the trucking industry may persist. Manufacturers and retailers in the trucking industry are also feeling the effects of economic uncertainty, with sharp declines in the North American Class 8 truck market.

Freight Market Future Outlook

The Cass Transportation Index Reports offer insights into the health of the trucking industry. But while the current Cass Shipments Index may cause alarm, it’s not all doom and gloom. Looking ahead, we see the freight market facing a mix of challenges and opportunities.

The equipment cycle is a big influence. As older equipment reaches retirement and new truck orders remain below replacement levels, the industry may be setting up for tighter capacity conditions. This means a greater demand from shippers than carriers, which typically offers trucking companies more pricing power.

In time, markets adapt to new conditions. As inventory build-up supplies thin, and destocking runs its course, the market will eventually adjust to a new normal after the trade disputes. And the freight data is likely to stabilize.

Conclusion

In the Cass Transportation Index data, we see a freight market in transition, with declining freight volumes. The key factors driving this are destocking from pre-tariff inventory buildups, modal shifts toward truckload services, and policy uncertainty.

These are likely to continue influencing the market in 2025, but small fleet operators may find new, profitable opportunities as market conditions continue to evolve.

Mission Financial Services offers specialized solutions designed for the trucking industry. Need financing to expand your fleet or do the repairs to keep your existing equipment running? Contact us. Our quick approval process and flexible credit requirements help you seize opportunities in any market conditions.

Do You Need a CDL to Finance a Semi Truck?

You’re ready to expand your trucking business or become an owner-operator. But a critical question arises: do you need a Commercial Driver’s License (CDL) to finance a semi-truck?

While having a CDL certainly makes the process smoother, it’s not always a strict requirement for financing. Understanding your options and the implications of each path can help you make the best decision for your business goals.

Understanding CDL and Its Role in Truck Financing

Do you need a CDL to finance a semi-truck? The answer depends on various factors. So, let’s dive in and uncover the facts.

CDL Overview

A Commercial Driver’s License serves as your official authorization to operate commercial motor vehicles.

The Federal Motor Carrier Safety Administration (FMCSA) has developed and issued standards for state testing and licensing of CDL holders. This ensures that drivers meet specific safety and competency requirements before hitting the road.

Your CDL status significantly influences what your semi-truck financing requires. Most lenders prefer applicants who can legally operate the vehicles they’re financing, as this demonstrates your ability to generate income and reduces the risk of loan delinquency.

How a CDL Influences Financing Options and Lender Perceptions

Having a CDL dramatically improves your financing prospects. Why do you need a CDL to finance a semi-truck? Many lenders won’t let you borrow money to buy a truck that you cannot drive. So, check if the lender you’re applying to insists on a CDL, and get yours before applying.

Lenders view CDL holders as lower-risk borrowers because they can provide proof of professional qualifications and generate immediate income from the financed vehicle. A CDL is also seen as a demonstration of commitment to the trucking industry.

You’ll get better loan terms and rates from banks if you have an established trucking business or have held a CDL for at least two years.

Requirements for Obtaining a CDL

The process of obtaining a CDL involves several steps:

Age requirements: Most states require drivers to be at least 18 years old for intrastate commercial driving and 21 for interstate commercial driving.
Knowledge tests: Written exams covering general knowledge of truck components, truck driving, and road rules.
Skills tests: Practical driving tests demonstrating your ability to safely operate the new semi truck and other commercial vehicles.
Background checks: Clean driving record and criminal background verification.
Medical certification: You must pass a Department of Transportation (DOT) medical examination.

Types of CDL

The CDL system includes three main classes, each allowing you to operate different types of commercial vehicles:

Class A: This license allows the driver to operate any combination of vehicles with a gross vehicle weight rating (GVWR) of 26,001 pounds or more, inclusive of a towed unit(s) with a GVWR of more than 10,000 pounds.
Class B: This covers any vehicle with a GVWR of 26,001 pounds or more, or any such vehicle towing a vehicle with a GVWR that does not exceed 10,000 pounds.
Class C: Any single vehicle, or combination of vehicles, that does not meet the definition of Class A or Class B but is either designed to transport 16 or more passengers, including the driver, or is transporting hazardous materials.

For semi-truck financing, you’ll most likely need a Class A CDL, as this covers the majority of commercial trucking operations. Check out our guide to learn more about semi-truck weight.

Drivers who operate special types of commercial motor vehicles, such as fuel tankers and hazmat transport, must pass additional tests to obtain the necessary endorsements on their CDL.

Financing a Semi-Truck Without a CDL

Do you need a Commercial Driver’s License (CDL) to finance a semi-truck if you won’t be doing the driving? The short answer is no. If you won’t be driving the truck yourself, you can finance a semi-truck without holding a CDL.

Scenarios Where Individuals or Businesses Can Finance Without a CDL

The person paying for the semi-truck and the person driving the vehicle can be two different people. This separation of ownership and operation creates several viable financing scenarios.

Business fleet expansion: Established transportation companies can finance additional vehicles for their CDL-holding employees.
Family business operations: Family members can finance vehicles for CDL-holding relatives.
Future CDL acquisition: Some people arrange truck financing while pursuing their CDL, with the understanding that they’ll obtain proper licensing before operation.
Investment partnerships: Investors can purchase trucks and lease them to qualified drivers.

Role of Investor Buyers and Hiring CDL-Licensed Drivers

In the trucking industry, we refer to individuals considering buying a commercial truck without a Commercial Driving License (CDL) as investor buyers.

In these investor-driver partnerships, the investor finances the truck while partnering with an experienced CDL holder who operates the vehicle. The arrangement can be structured as lease agreements with driver-operators, employment relationships with company drivers, or revenue-sharing partnerships.

Some investors purchase multiple trucks and hire CDL-licensed drivers to operate them, building a transportation business without personally driving.

Considerations and Potential Challenges in These Arrangements

While financing without a CDL is possible, it presents unique challenges for drivers and small business owners in the trucking industry.

Limited lender options: Fewer lenders offer financing to non-CDL holders.
Higher interest rates: Lenders may charge premium rates due to perceived increased risk.
Stricter requirements: You’ll face more stringent credit, income, and down payment requirements.
Operational complexity: Managing driver relationships and ensuring continuous operation requires business skills.
Insurance complications: Finding appropriate coverage for non-owner operators can be challenging.

Semi-Truck Financing Requirements and Considerations

Just like when applying for a car loan, you’ll have to meet certain lender requirements for commercial truck loans.

Common Criteria Lenders Assess

When evaluating applications from non-CDL holders, lenders focus on several key factors.

Credit score requirements: The applicant must have a minimum credit score of 625. Many lenders set even higher thresholds when non-CDL holders apply for a commercial vehicle loan. If you own a trucking business, you may need to have a specific business credit score.
Down payment: This program requires 2 years of tax returns and a down payment of 35-40%. Non-CDL holders typically face higher down payment requirements compared to licensed drivers.
Financial documentation: Lenders typically require comprehensive financial records, including bank statements, profit and loss statements, business plans showing projected income, and tax returns for the past 2-3 years.
Driver documentation: The driver who will be doing the hauling must provide a copy of their CDL. You must demonstrate that a qualified driver will operate the vehicle.

Can You Get a Semi-Truck Loan if You Have Bad Credit?

If you have bad credit, don’t stress, you still have semi-truck financing options! Certain lenders, for example, Mission Financial Services, offer semi-truck financing even to people with poor credit. Be aware that you may need to put down a larger down payment or satisfy other criteria.

Importance of Demonstrating the Ability to Operate the Truck Legally

Lenders need assurance that your financed truck will generate income legally and safely. This means providing:

Driver contracts: Formal agreements with CDL-licensed drivers.
Hauling contracts: The applicant must provide a solid hauling contract showing guaranteed work for the truck.
Insurance coverage: Comprehensive commercial insurance policies.
Compliance documentation: Proof of DOT registration and other regulatory requirements.

Potential Need for Co-Signers or Additional Documentation

Non-CDL financing often requires additional security measures. Additional assets, collateral, or co-signers might be required to secure the financing, and family members or business partners with strong credit may need to guarantee the loan.

These extra measures mean there is a possibility of having to deal with a lot more paperwork and extra verification processes for the co-signers.

Benefits of Holding a CDL When Financing

Having a Commercial Driver’s License can significantly improve your financing options when purchasing a truck.

Let’s get into the beneficial factors to consider.

Increased Financing Options and Potentially Better Terms

CDL holders enjoy more opportunities for securing semi-truck financing.

Drivers with at least three years of verified driving experience will qualify for financing much more easily than those who don’t have a CDL. Drivers with less CDL experience who can provide a larger down payment will be evaluated on a case-by-case basis.

Benefits include:

More lender options: Traditional banks, credit unions, and specialized commercial truck financing companies.
Lower interest rates: Reduced risk translates to better semi-truck financing terms.
Flexible down payments: Some lenders offer low or no down payment options to experienced drivers.
Faster approval: Streamlined application processes for qualified drivers.

Enhanced Credibility with Lenders

Your CDL demonstrates several positive attributes to lenders. A CDL implies that you understand commercial vehicle operation, safety, regulations, and best practices, and can generate revenue from the financed vehicle.

Greater Flexibility in Business Operations

CDL holders maintain complete control over their operations. They can start generating income as soon as the truck is delivered, and have the freedom to choose loads and routes without depending on hired drivers. There’s no need to pay driver wages or manage employment relationships.

Steps to Take if You Don’t Have a CDL

1. Exploring Lease-to-Own Options

If you lack a CDL but want to enter trucking, consider commercial truck leasing. With lease-to-own arrangements, you have the option to return the vehicle or purchase it at the end. There’s a lower initial investment for this type of semi-truck leasing compared to traditional financing.

This type of leasing provides you with gradual equity building toward eventual ownership. Best of all, many lease agreements include maintenance and warranty coverage. However, take note that some lease agreements will still require a CDL.

2. Partnering with Licensed Drivers

Strategic partnerships can provide immediate entry into trucking. Find experienced CDL holders looking for truck access, and establish fair profit-sharing arrangements with clear alignment on document responsibilities and financial obligations.

Remember to set clear expectations for mileage, maintenance, and profitability.

3. Planning for Future CDL Acquisition

Some lenders offer financing contingent on CDL completion.

If you’re committed to eventually driving yourself, budget for CDL school costs and lost income during training. Also, create a realistic schedule for CDL training and testing. Alternatively, look for trucking companies that offer CDL training in exchange for a commitment to driving for them.

Conclusion

Do you need a CDL to finance a semi-truck? No, you don’t. Non-CDL financing is possible through investor arrangements, partnerships with licensed drivers, and specialized lender programs. But while it isn’t necessarily mandatory, having a CDL simplifies semi-truck financing and opens more opportunities.

For aspiring truckers, obtaining a CDL before seeking financing offers favorable terms, operational flexibility, and long-term success potential in the transportation industry. But you have various options, and we’re happy to help you find one that suits you, at Mission Financial Services.

How Many Gallons Does a Semi Truck Hold? All You Need to Know About Fuel

Fuel is one of the biggest operating expenses in the trucking industry. This is true whether you’re a fleet owner, an independent owner-operator, or just entering the world of commercial trucking. Understanding how fuel works in semi-trucks is crucial for planning trips, managing costs, and maintaining your rig.

A common question among drivers and trucking business owners is: How many gallons does a semi truck hold? The answer, however, is not always straightforward. It depends on the tank size, configuration, and the method used to fill the truck.

This guide breaks down the fuel system of semi-trucks, tank capacities, rules for safe filling, and how far you can expect to go on a full tank.

Average Fuel Tank Size for Semi-Trucks

When it comes to answering: how many gallons does a semi truck hold, it helps to understand standard tank sizes.

So, the first question we need to address is this: How big are semi-truck gas tanks? Semi-trucks pull heavy trailers, often over very long distances, and therefore need to hold a lot of diesel fuel. This is why most semis have two fuel tanks.

The typical semi truck fuel tank capacity typically falls within these ranges:

Single tank setup: 100 to 150 gallons of fuel
Dual tank setup: 200 to 300 total gallons of fuel

Dual tanks allow for extended range between fuel stops on long-haul operations. For instance, many over-the-road (OTR) trucks carry two 125-gallon tanks, totaling 250 gallons. That said, not every gallon in the tank will be used, as we’ll explain below.

The 95% and 25% Rules, and the Gas a Semi-Truck Can Hold

When someone asks, “How much gas does a semi truck hold?” the answer depends on whether you’re talking about total tank volume or usable fuel. To ensure safety and prevent fuel system damage, most truck drivers follow what’s known as the 95% rule and the 25% rule. This practical fuel limit is key when planning routes and calculating fuel expenses.

Fuel expands in hot temperatures, increasing the risk of spills. The 95% rule requires filling tanks only up to 95% of their total capacity to allow for fuel expansion and avoid spills. Truckers agree that this delivers roughly the same miles per gallon (MPG) as a full tank.

The 25% rule helps prevent running the tank too low. Refueling when it reaches around 25% of capacity lowers the risk of drawing air into the fuel lines or harming the truck’s engine.

For example: If a truck has dual 125-gallon tanks (250 gallons total), filling to 95% would mean around 237.5 gallons of fuel. Running the tanks down to 25% of 250 gallons leaves about 62,5 gallons. In this scenario, the drivers refuel after consuming about 175.25 gallons.

Reasons for the 95% Rule in a Semi-Truck

The 95% rule isn’t just a suggestion. It’s a safeguard built on years of trucking experience and engineering expertise. Overfilling a semi-truck tank can lead to some serious problems. So, let’s break down the main reasons why truckers follow this standard.

Expansion

Diesel fuel expands and contracts with temperature changes. On hot days, the fuel inside the tank can expand significantly. Overfilling can lead to overflow, which poses environmental hazards and safety issues.

Spills

No matter how many gallons your truck holds, it’s best to avoid overfilling the tank. An overflowing tank can lead to spills. When diesel spills out during refueling, it creates a slipping hazard at fuel stations and on roadways. It also violates environmental regulations and can result in fines.

Weight

The weight of diesel fuel varies depending on its gravity and density, as well as factors such as temperature and pressure. That said, diesel fuel typically weighs approximately 7 pounds per gallon in the US. Filling up 200 gallons adds about 1,400 pounds to your truck!

That weight impacts payload capacity, braking, fuel economy, and compliance with gross weight limits. Understanding how many gallons of diesel a semi truck holds is critical for staying within legal weight limits.

Understanding the Weight of Fuel per Gallon in a Semi-Truck

The question “How much gas does a semi truck hold?” can be answered in another way: weight. Many drivers focus solely on semi-truck fuel capacity, but weight matters just as much. Diesel fuel is denser and thus heavier than gasoline and can significantly affect your load.

One gallon of diesel equals roughly 7 pounds. But multiply that by 200 gallons, and we’re talking about 1,400 pounds! That’s a really big load on your overall vehicle weight.

For carriers hauling loads close to the federal 80,000-pound limit, fuel weight can reduce how much freight you can legally carry. Experienced dispatchers and owner-operators plan loads and refueling stops accordingly.

Key Considerations When Filling a Semi-Truck Fuel Tank

Knowing how to refuel responsibly is even more critical than understanding how many gallons your semi-truck can hold. Several factors affect when, how, and where you should fill up. Ignoring them can lead to inefficiencies or even mechanical issues. These are the factors that have led to widespread use of the 95% rule.

Fuel Expansion

Diesel expands with an increase in heat. Avoid filling up during the hottest part of the day if possible. Fueling in the early morning or evening can help reduce the risk of overflow and spills. Follow the 95% rule for added peace of mind.

Risk of Spilling

Overfilling a semi truck’s gas tank can cause diesel to leak out of the cap or vent. This wastes money and can lead to environmental issues and potential fines. Avoid this problem by avoiding parking on an incline.

Fuel Weight

Diesel fuel weighs more than most people think. And as the fuel tanks fill up, gross vehicle weight increases. Balance refueling needs with load weight, especially when hauling near the legal limit. Overloading can lead to DOT fines and extra wear on brakes and suspension.

Main Factors Affecting How Many Gallons a Semi-Truck Can Hold

Several variables determine a truck’s fuel capacity beyond just the number stamped on the side of the tank.

Tank configuration: Single vs. dual or customized fuel tank, tank shape, and installation method
Truck make/model: Freightliners, Kenworths, Volvos, and Peterbilts come with different configurations.
Some drivers replace stock tanks with larger aftermarket versions.
Local trucks may only need 100–150 gallons, while long-haul rigs may need 250+ gallons.

So, how many gallons do semi trucks hold? Semi-truck fuel capacity and consumption depend on the truck’s specifications and use.

How Many Miles Can a Semi-Truck Go on a Gallon of Gas?

Fuel economy is a significant factor in operational planning. Most modern diesel-powered semi-trucks average 6 to 8.5 miles per gallon (MPG) on highway routes. However, stop-and-go city driving or mountainous terrain can deliver lower MPG.

Theoretically, a truck with 240 usable gallons at 7 MPG could go about 1,680 miles on a full tank. However, how far a semi-truck can go on a full tank depends on speed, road grade, idle time, and load weight.

Additional facts to consider:

Trucks with aerodynamic fairings get better mileage.
Driving conservatively extends range. This is why continued driver training is so necessary.
Newer engines may offer better fuel efficiency.

Understanding your semi-truck’s range on a full tank helps plan fuel stops, reduce downtime, and keep delivery schedules on track.

Conclusion

How many gallons of fuel does a semi hold? The simple answer ranges from 100 to 300 gallons. The real answer is more nuanced.

Tank size, fuel expansion, weight limits, and safety regulations all impact how much fuel your truck can use at any given time. The real-world MPG range depends on route conditions, driving behavior, and truck configuration.

Newer semi trucks often have fuel efficiency technology that can improve your gas mileage range and give you a competitive edge. But don’t worry about affordability. Mission Financial Services offers semi-truck loans to suit all business types and budgets.

What Is a Commercial Truck? Definition, Types, and Uses

From delivering goods across the country to transporting heavy construction equipment, commercial trucks form the backbone of American commerce. But what exactly is a commercial truck, and how do you decide which type fits your business needs?

This guide explores the definition of commercial trucks, how they’re classified, and the different types by weight and use. You’ll also find useful buying strategies and tips for choosing trailers.

Exploring your options at a commercial truck dealership, considering new commercial trucks, or browsing used commercial trucks for sale? This guide will help you make informed decisions.

How Are Commercial Truck Classifications Determined?

The Federal Highway Administration (FHWA) and U.S. Department of Transportation (DOT) classify commercial trucks in North America by Gross Vehicle Weight Rating (GVWR). This is the maximum total weight of the vehicle, including its chassis, body, engine, fuel, passengers, and cargo.

Understanding GVWR helps businesses comply with safety regulations, licensing requirements, and insurance guidelines.

The FHWA divides trucks into three broader categories after classifying them into eight classes:

Class 1–2: Light-duty (GVWR up to 10,000 lbs)
Class 3–6: Medium-duty (GVWR 10,001–26,000 lbs)
Class 7–8: Heavy-duty (GVWR over 26,001 lbs)

These classes reflect the trucks’ capacities, which roads they can operate on, what licenses drivers need, and how the vehicles are insured and taxed.

What Are the Different Types of Commercial Trucks?

Commercial trucks come in a wide variety of builds and applications, from box trucks used for deliveries to semi-truck tractor-trailers shipping cargo. The type you choose depends on your business function, cargo type, and travel needs.

Let’s take a closer look at these truck types divided by weight class.

Heavy-Duty Commercial Trucks – Class 7 and Class 8: GVWR 26,001–33,000 lbs+

These trucks are built with power, endurance, and long-distance hauling in mind. They’re common in the freight, logistics, and construction industries.

Common types:

18-Wheelers / Tractor-Trailers (Class 8): These trucks are designed for long-haul trucking and pull-enclosed trailers, flatbeds, tankers, or refrigerated units. Ideal for freight and logistics operations, they often require lots of maintenance.
Cement Mixers (Class 8): Cement mixer trucks carry wet concrete to construction sites.
Dump Trucks (Class 8): Dump trucks are used for moving large volumes of gravel, sand, or demolition debris.
Refuse Trucks (Class 7 or 8): Waste management fleets rely on heavy-duty refuse trucks to collect and haul trash.
Tow Trucks (Heavy-Duty): What happens when a heavy-duty vehicle breaks down? You call for a heavy-duty tow truck, of course. Manufacturers specially design these vehicles to tow buses and other trucks.

Drivers of heavy-duty trucks like these require a Commercial Driver’s License (CDL).

Medium-Duty Commercial Trucks – Class 3 to Class 6: GVWR 10,001–26,000 lbs

Medium-duty trucks offer versatility for regional deliveries, service calls, and vocational uses like towing or utility work.

Common types:

Box Trucks / Straight Trucks (Class 4–6): These are popular among delivery companies and removal businesses. They have an enclosed cargo area attached to the cab rather than a separate trailer.
Flatbed Trucks (Class 5–6): Flatbed trucks are used to carry oversized or irregularly shaped loads. These commercial vehicles are ideal for the construction and lumber industries.
Utility Trucks / Bucket Trucks (Class 5): Utility trucks have an extendable boom for elevated work. They are common among electrical, telecom, and public works departments.
Refrigerated Trucks (Class 5–6): Refrigerated trucks are crucial for the food and medical transport industries. They maintain cold temperatures essential for perishable products.

These trucks don’t always require a CDL, depending on the GVWR and state laws, making them accessible for small to mid-sized businesses.

Light-Duty Commercial Trucks – Class 1 to Class 2: GVWR Less Than 10,000 lbs

Light-duty commercial trucks are perfect for small business owners, tradespeople, and delivery services within cities or suburban areas.

Common types:

Pickup Trucks (Class 1–2): Widely used in construction, landscaping, and agriculture. They’re versatile, fuel-efficient, and come in many configurations.
Cargo Vans (Class 1–2): Ideal for last-mile delivery, plumbing, HVAC, or repair businesses. Offers secure storage and easy urban maneuverability.
Passenger Vans (Commercial Use): Used by shuttle services, hotels, and churches for transporting multiple passengers.

Many new trucks in this class are available through retail dealerships and often qualify for business tax deductions.

How to Choose the Right Trailer for Your Commercial Vehicle Business

A commercial truck’s job isn’t complete without the right trailer. Trailers expand hauling capabilities and enable businesses to customize their operations.

Popular trailers:

Dry Van Trailers: Fully enclosed for general inventory and dry goods.
Flatbed Trailers: Open design for oversized or heavy materials like steel beams or lumber.
Refrigerated Trailers (Reefers): Temperature-controlled trailers used by food distributors and pharmaceutical companies.
Tanker Trailers: Used to transport liquids, chemicals, or gases.
Dump Trailers: Construction, agriculture, and landscaping professionals use hydraulic lift trailers for various tasks.

Consider these factors:

Cargo type: Is it perishable, hazardous, or fragile?
Load size and weight: Match trailer specs with your commercial truck’s towing capacity.
Operational terrain: Will you operate on highways, rural roads, or off-road environments? Optional equipment may be necessary for off-road use.
Regulatory compliance: Ask the sales team about DOT and state regulations for your cargo and vehicle class.

Working with a reputable commercial truck dealership helps you get the right trailer-to-truck match and ensures compliance with all legal requirements.

How Construction Crews Buy Work Trucks vs. Utility Companies

Fleet managers from both sectors often attend commercial truck sales events to find bulk discounts or demo models with low mileage. However, construction crews and utility companies prioritize different features and specs.

Construction Crews

Construction businesses need trucks that handle tough environments, haul heavy tools, and carry building materials. These trucks must be rugged, powerful, and often 4×4 capable.

Common construction trucks:

Heavy-duty pickup trucks with toolboxes and towing hitches
Dump trucks for debris and raw material transport
Flatbed trucks for moving pallets and lumber
Crane trucks for lifting equipment on-site

Best buying strategies:

Choose durability over luxury.
Buy based on payload capacity and off-road performance.

Utility Companies

Utility companies focus on efficiency, safety, and access. They equip their trucks for specialized tasks like line maintenance, underground inspections, and storm response.

Typical utility trucks include:

Bucket trucks for aerial work
Service trucks with onboard tool storage and generators
Cable spool trucks for telecom work

Best buying strategies:

Look for trucks with high uptime and easy maintenance.
Invest in vehicles with telematics and GPS for fleet tracking.

Finding the Work Truck That’s Right for Your Business

The right work truck boosts productivity, supports your team, and improves customer satisfaction. Whether you’re expanding a fleet or buying your first work vehicle, there’s a truck that fits your business.

Here are a few tips for making a smart investment:

Consider what your truckers are hauling, how far, and how often. Consider the terrain and weather conditions along your routes. The latest technology will give your drivers the confidence they need.
In your search for the perfect truck, match the vehicle to the job. Don’t overspend on a heavy-duty Freightliner-type model if a light-duty vehicle meets your needs.
Factor in the total cost of ownership, not just the initial price. Include fuel costs, maintenance, insurance, and depreciation.
Explore available financing options for the best deals. Many commercial truck dealerships offer flexible financing, leasing, and warranty packages.
Don’t get hung up on brands like Ford, Mack, RAM, Peterbilt, or Isuzu and then forget about scalability. If your business grows, will the truck live up to dealer promises and still meet your needs?
Before you buy, review the truck’s history and maintenance records and have a mechanic inspect it if it’s a used vehicle.

Conclusion

A commercial truck is an essential business asset. From light-duty delivery vans to heavy-duty haulers for construction materials, these vehicles support industries across America.

Understanding truck classifications will help you find the ideal vehicle for your needs when you’re looking to buy a truck. And Mission Financial Services will help you get the funds you need to get those trucks.

We offer owner-operators and fleet services the commercial truck financing they need, even with limited or bad credit. Contact us today and get the funding you need for your next commercial truck purchase.

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