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semi trucks for sale with financing

Where To Find Semi-Trucks For Sale With Financing

semi trucks for sale with financing

Has your semi-truck credit application been approved? Are you ready with your downpayment? We have great news if you want to learn where to find semi-trucks for sale with financing! Joining thousands of owner-operators in the trucking industry is a fantastic idea.

We’ll show you where to find semi-trucks for sale with financing, discuss the best places, and ensure you get your rig!

The Importance Of Finding Semi-Trucks With Financing

Investing as a semi-truck driver is a significant expense; only some have the cash flow to purchase one outright. That’s why finding semi-trucks for sale with financing is important.

Semi-truck financing allows you to spread the cost of the truck over time. This approach makes it more affordable and manageable for your business. However, some financing will require down payments.

Additionally, a loan can help you build credit, which can be beneficial when seeking funding for future business expenses. This financing allows you to grow your company and stay competitive.

Places To Find Semi-Trucks For Sale With Financing

With your first-time buyer semi-truck loan in hand, here are some places to approach for your future semi-truck purchase:

Dealerships

Dealerships are the most popular and common places to buy semi-trucks. These dealerships specialize in selling commercial trucks and have a wide range of inventory. They offer a variety of brands, models, and years. Here are some benefits of buying from a dealership:

load transportation

  • Wide Selection: Dealerships offer a wide selection of semi-trucks. This variety can be helpful when looking for a specific make, model, or year.
  • Warranty and Service: Dealerships often provide warranties and services for their semi-trucks. This can benefit drivers, giving them peace of mind knowing they can get their trucks serviced and repaired at the dealership.

Buying a semi-truck from a dealership can be an excellent option for drivers looking for a wide selection, warranty and service, and trade-in options.

Online Marketplaces For Semi-Trucks

Online marketplaces for semi-trucks have become increasingly popular. Websites like Truck Paper and Commercial Truck Trader are some of the most well-known platforms.

The benefits of shopping for semi-trucks on these online marketplaces are numerous. These platforms offer many truck models for sale. The variety makes it easier for buyers to compare and find the best one for their needs.

Many of these websites allow buyers to search for trucks based on specific criteria, such as make, model, year, and location. This can help make finding the right truck much more efficient.

Auctions For Semi-Trucks

Auctions are another option for those searching for semi-trucks for sale with financing. Here are some benefits of buying from auctions:

  • Competitive prices: Auctions offer competitive prices, which can save you money compared to buying from a dealership or private seller.
  • Access to exclusive inventory: Auctions sometimes have exclusive inventory that is not available anywhere else. This means you can purchase a rare or unique semi-truck that fits your needs perfectly.

Buying from auctions can be an excellent choice for those who want to find a good deal on a semi-truck.

Private Sellers

Private sellers can also be a good option when looking for semi-trucks for sale with financing.

signing a contract

Here are some benefits of buying from a private seller:

  • Lower prices: Private sellers are usually motivated to sell their trucks quickly and may be willing to sell for a lower cost than dealerships or online marketplaces.
  • Less competition: Since private sellers are less visible than dealerships or online marketplaces, there may be less competition for the trucks they sell.
  • Negotiation: Private sellers may be more willing to negotiate on the price. They may also have flexible terms of the sale since dealership policies or regulations do not bind them.

However, it’s essential to remember that buying from a private seller may also come with risks, such as limited warranties or guarantees and a lack of financing options. It’s important to thoroughly inspect the truck and ask for maintenance records before purchasing.

Become Your Boss With Mission Financial Services

We hope our information will help you find the perfect truck to suit your needs. Remember, at Mission Financial Services, we make the financing process easy, so you can focus on finding the right truck.

Whether you’re looking for a dealership, online marketplace, auction, or private seller, we’re here to help you every step of the way. Contact us today to pre-qualify to get started on your journey to owning your dream truck!

should i put my semi truck in my business name

Should I Put My Semi Truck In My Business Name (+ Other FAQs)

should i put my semi truck in my business name

Should I put my semi-truck in my business name? This is one of the most common questions from truck owners when purchasing a vehicle.

If you run a trucking company, your vehicles are your biggest and most important business asset. Owning trucks comes with many costs: insurance, maintenance, taxes, and more.

This means you need to be smart about how you purchase and register trucks. If you sensibly do this, you can optimize your expenses.

In this guide, we’ll cover whether you should put your truck in your personal or business name, as well as some related questions.

Should I Put My Semi Truck in My Business Name?

If you own a semi-truck as a business vehicle, one of the most common questions you’ll ask yourself is whether you should put your semi-truck in your business name or keep it as a personal asset.

While there’s no right or wrong answer, there are advantages to taking either approach.

Why Put Your Semi-Truck in Your Business Name?

Putting your semi-truck in your business name lets you separate the truck from your personal self. This can offer valuable protection of your personal assets in case something happens.

For example, if someone files a lawsuit against you, they could go after your truck as it is your personal property.

long road

This kind of issue can happen in the event of financial troubles or even a divorce. If your truck is registered as a business asset, it’s separated from your personal self. This means the truck is protected.

If you have a poor financial history or credit rating, then it could also be worth registering your truck as a business asset. This can make it easier to gain semi-truck financing for your business – instead of applying for it personally. This can also help you access semi-truck repair loans.

If you own a trucking company with multiple vehicles, then it makes sense to register these vehicles as business assets. This will help you provide coverage for all of your business vehicles more easily. It also reduces any risks associated with owning these vehicles, which can be big when you have multiple trucks.

Why Keep Your Semi-Truck in Your Personal Name?

The main reason why putting your semi-truck in your personal name is a good idea is that it’s easy.

If you are an owner-operator, there’s a good chance your business might be operating as a sole proprietorship. In this case, you have no choice but to register the truck in your name as there is no separation between yourself and your business.

In many cases, owner-operators will purchase a truck first and then register the business. In this case, the truck will first be placed under the owner’s personal name, which can make transferring the truck to your business difficult.

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Personal or Business: Which is Best?

While it’s often easier to register your semi-truck in your name, it’s generally considered a smarter move to register it under your business. Doing so helps to protect your truck as a business asset and legally separates you from your truck in case any issues arise.

Owning the truck as a business vehicle can be beneficial for tax purposes, as maintenance costs associated with the truck can be recorded as business expenses.

Of course, one important consideration also comes down to whether you have business partners or not. If you do, then registering the truck under your business will give them a share of ownership of the truck. If it’s just you that runs the business, then this is an easier decision to make.

If you’re considering registering your truck as a business asset, it’s important to first consult with a business lawyer on the matter. They will be able to offer specific advice based on your business and personal situation.

How Does Commercial Auto Insurance Work?

If you’re wondering whether you should put your semi-truck in your business name, you’ll also want to consider commercial auto insurance.

Properly insuring your semi-truck is essential, and one of the best ways to do this is through a business vehicle insurance policy.

This type of insurance only applies to business vehicles, so you can’t access these policies if the trucks are registered as personal assets.

signing document

If your truck is registered as a personal asset, then you will also need to insure it under your personal name. Many household and vehicle insurance providers don’t have policies for semi-trucks unless they’re used as business vehicles. This can make insuring the truck a complicated and expensive process.

Commercial auto insurance gives you higher insurance amounts and will help you cover the vehicle under circumstances where a personal insurance policy wouldn’t pay the claim. This includes insurance coverage of the vehicle but also insurance for things like injuries, property damage, or collision insurance.

If your employee drives the truck and gets into an accident, then your commercial auto insurance will pay out. If the truck is insured under your name, then claiming for accidents involving other drivers can be very difficult. You might not be able to claim from a personal policy at all if you were using the truck as a business vehicle.

Commercial auto insurance can be significantly more expensive than personal insurance policies. This is because of the extra liability a trucking company has compared to a personal vehicle.

Of course, this all depends on your specific insurance policy and provider. However, as a working business vehicle, you’ll probably want to have commercial auto insurance on your semi-truck.

Should I Buy a Semi-Truck as a Business Expense or Out of My Budget?

Beyond thinking about how you will register your semi-truck, you also need to consider how you will purchase and finance the truck. Should it be a personal or business expense?

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Many businesses purchase a business car, and for very good reason. By purchasing the semi-truck as a business expense, you can record your mileage and operating costs as business expenses. This can help you access some tax benefits.

Sure, you can still track your truck’s mileage and separate personal mileage from the mileage your trucking company racks up. However, it will be a lot easier to do this if the truck is a business expense.

Separating the truck financing as a business expense can also make it easier to manage your business’s finances and separate your business expenses from your personal expenses. If you finance the truck from your personal bank account and name, separating the truck as a business expense can get tricky.

However, whether you should purchase the truck as a business or personal expense comes down to your individual situation. Consider how your business is structured, and how you plan on financing the vehicle.

It’s best to speak to your tax practitioner about this to see how the cost of the vehicle can help you with taxes.

If you do purchase the vehicle under your business name, just be prepared for a different process. You’ll have to produce the right documents and ensure the vehicle is registered to the address on file with the Department of Revenue.

Should You Transfer Your Semi-Truck to Your Business?

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If you already own a semi-truck as a personal asset, you might want to transfer it to your business. This often happens if someone starts as a sole proprietor and then registers their trucking company as an LLC later down the line.

If you do plan to transfer ownership of the vehicle, there are some important things to keep in mind. Most importantly, the cost.

If you want your vehicle in your business name, you’ll have to repay the taxes associated with the value of the vehicle. This is because you will have to resell the vehicle from yourself to your business.

Even if you only sell the semi-truck to your business for $1, there are still taxes involved. By transferring the vehicle, you’ll have to pay these taxes for a second time. This can be an annoying and significant expense.

Should You Buy or Lease Your Vehicle?

The question of whether to buy or lease your semi-truck is one of the first things to consider when acquiring a new vehicle. As always, both options come with their advantages and disadvantages.

The obvious advantage to leasing a truck is that it’s more affordable in the short to medium term. If you don’t have a large down payment to make on the vehicle, you can start to lease the semi-truck at a relatively low monthly cost.

Depending on the type of leasing agreement you enter, you may be able to take ownership of the truck at the end of the agreement. This could make leasing a vehicle financially viable.

hands writing

The other advantage is that there’s less risk involved because you don’t own the vehicle.

Buying a vehicle comes with the advantage of owning the semi-truck straight away. This means it’s your asset, and you can sell it if you want. You can also gain tax advantages from owning the vehicle more easily.

So, leasing may mean more affordable monthly payments, but buying gives you greater control over vehicle usage and mileage. As your semi-truck is the most important asset for your trucking company, buying the vehicle often makes the most sense. However, this does depend on your specific circumstances.

And then there’s the question of whether you should lease the vehicle in your business name or personal name. While leasing is different from purchasing outright, the same principles that we’ve covered above apply to this scenario. In summary, leasing it in your personal name has benefits, but leasing it in your business name is less risky!

Conclusion

Whether you should put your semi-truck in your personal or business name depends on your individual situation.

There are many factors involved, such as insurance, taxes, your business structure and accounting, employees, and how your vehicle is funded. There’s no right or wrong answer, it just comes down to what option offers the best advantages for your business and personal scenario.

Whatever the case, it’s always best to consult with professionals to help you purchase your semi-truck as efficiently as possible. If you have any questions about financing a semi-truck, consider approaching Mission Financial Services for top-tier assistance.

semi truck business ideas

The 12 Best Semi-Truck Business Ideas

semi truck business ideas

Owning a semi-truck puts you in a rare position. You already have one of the most valuable assets in American logistics. Whether you’re an experienced driver or an aspiring entrepreneur, there are dozens of profitable ways to put that rig to work. 

From freight transportation to agricultural hauling and specialized services, the opportunities in 2026 are broader and more profitable than ever before. The American Trucking Associations projects that total U.S. freight tonnage will grow by 25.6% by 2030.

With the right commercial vehicle, a valid CDL, and a clear business plan, you can turn your truck into a thriving operation. 

And if you’re just getting started, flexible commercial vehicle loans from Mission Financial Services can make it easier to purchase or expand your fleet without straining cash flow. But first, let’s go over why you should start a semi truck business. 

Why Start a Semi-Truck Business?

Starting a semi-truck business is one of the fastest ways for owner-operators to gain financial freedom and long-term control over their careers. When you own your truck, you control your routes, your schedule, and, most importantly, your income potential.

The U.S. trucking industry continues to expand rapidly. Total freight tonnage is projected to grow by 25.6% by 2030. And with trucks already responsible for about 72% of all freight tonnage in the U.S., demand is both massive and enduring.

Operating your own trucking business means you can specialize in the type of freight you enjoy most. You might focus on long-haul cross-country deliveries, regional routes with shorter turnaround times, or niche markets like refrigerated or agricultural transport.

And when you’re ready to scale, you can hire other drivers and manage operations, turning a one-truck business into a profitable small fleet. 

With flexible commercial vehicle financing from Mission Financial Services, it’s easier than ever to expand without draining your cash flow.

truck

12 Best Semi-Truck Business Ideas

If you’re thinking of investing in a semi-truck, the good news is that plenty of trucking business opportunities and ideas are available. Each one comes with its own startup requirements, profit potential, and market niche. Let’s dig into it. 

1. Freight Transportation

One of the most popular trucking business ideas is to get into freight transportation. This is an enormous field you can join, with all kinds of different areas you can specialize in.

Freight hauling remains the backbone of the U.S. economy. Whether you’re moving raw materials, retail goods, hazardous waste, or industrial components, freight transportation gives you the flexibility to choose your loads and clients.

The two most common models are:

  • Less Than Truckload (LTL): Smaller shipments from multiple suppliers that share trailer space, which is ideal for maximizing capacity and reducing downtime.
  • Full Truckload (FTL): Dedicated loads for a single shipper, often with higher payout and simpler logistics.

Freight may be transported between different transport links (like rail, air, or sea), or you could transport freight from a supplier directly to a customer.

2. Agricultural Hauling

The farming and agriculture industry needs trucks to operate. This is another huge sector that you can build your trucking business around.

Agricultural and food-product shipments represent about 30% of all ton-miles across the U.S. freight transportation system, offering huge demand. You can focus on hauling livestock, grain, feed, fertilizer, or heavy farm machinery, depending on your trailer type and regional opportunities.

If you do decide to focus on the agricultural sector, it pays off to specialize in a certain type of trucking. Certain types of freight, like refrigerated dairy or bulk grain transport, can help you stand out and command premium contracts.

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3. Truck Rental or Leasing

If you own your truck, you might even consider starting a truck rental business. Renting or leasing out your semi-truck to other drivers or small carriers can generate steady passive income. 

This is especially true if your truck isn’t always in use. Many owner-operators use downtime between contracts to rent their trucks short-term through local listings or industry platforms.

This business model scales best when you own multiple rigs, but even a single truck can bring in consistent monthly revenue. Of course, this business idea works best if you own multiple trucks and not just one. 

To reduce risk, make sure to secure strong rental contracts and semi-truck insurance coverage. 

4. Moving and Relocation Services

When it comes to starting your own trucking company, you can also look at going into the moving business. While most moving companies use box trucks, semi-trucks are ideal for large-scale or long-distance relocations.

You can partner with corporate relocation firms, logistics providers, or government contractors to move offices, equipment, or bulk furnishings across states. 

Marketing your trucking business to industrial clients or large residential moves can make your services stand out in a crowded space.

Startup costs are relatively low since you already own the main asset: your truck. Focus on obtaining a USDOT number, operating authority, and proper cargo and liability insurance. 

If you plan to operate across state lines, you’ll also need an MC number from the FMCSA and any state-specific household goods carrier permits.

5. Courier and Delivery Contracts

Trucking businesses can also consider going into local shipping or courier services. This category has evolved a lot in recent years. With the continued rise of e-commerce and bulk retail, larger deliveries often require regional trucking capacity that smaller couriers can’t handle.

By targeting furniture stores, appliance retailers, or B2B delivery contracts, you can fill a profitable niche between local delivery and long-haul freight. Semi-truck courier services can haul larger items and larger loads using dry vans or curtain-side trailers designed for quick loading.

While profit margins depend on contract volume and fuel management, many regional delivery operators maintain steady weekly income thanks to repeat B2B contracts and short-haul routes that keep operating costs low. 

Financing additional trucks or trailers with the help of Mission Financial Services can further boost efficiency and earnings potential.

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6. Waste and Recycling Removal

Hauling waste, recyclables, or scrap materials is an essential and often recession-proof trucking service. There will always be waste, from people and businesses. 

You can specialize in construction debris, commercial waste, metal recycling, or hazardous materials, depending on your equipment and certification level. Operators with hazmat or environmental transport endorsements can access higher-paying contracts that most competitors can’t bid on.

To operate legally, you’ll need a USDOT number, proper waste-hauling permits (issued at the state or local level), and insurance coverage for environmental and cargo liability.

Startup costs depend on your equipment and the type of waste you move. Many operators use roll-off trailers for construction debris, dump trucks for bulk materials, sealed containers for liquid or hazardous waste, or flatbed trailers for recycling and scrap metal transport.

7. Car Hauling and Transportation

Car hauling is one of the most profitable ways to use a semi-truck, especially if you have the right trailer setup. Depending on your market, you can choose between open multi-car trailers (ideal for new car deliveries) or enclosed haulers that protect classic or luxury vehicles during transport.

Startup costs in car hauling are generally higher than in other trucking niches because of the specialized equipment and insurance requirements involved. You’ll need a reliable semi-truck with enough horsepower for heavy towing.

Success in this niche depends on establishing consistent partnerships with auto dealerships, auctions, rental agencies, or online vehicle marketplaces, such as Carvana and Bring a Trailer. 

To operate legally, you’ll need a USDOT number, an MC authority, and cargo insurance that covers vehicle damage in transit.

8. Construction Material Hauling

Construction haulers handle heavy materials such as steel, concrete, lumber, and aggregate, often navigating congested urban areas or job sites. It’s less about long-distance routes and more about coordinating multiple short runs that keep major projects on schedule.

To succeed, you’ll need a heavy-duty semi-truck, a flatbed or dump trailer, and the proper permits for overweight or oversize loads. 

Because deliveries are time-sensitive, maintaining clear communication and on-time performance is key to earning repeat contracts.

This niche rewards professionalism and reliability. It’s a strong fit if you’re an experienced driver who wants consistent, hands-on work supporting large-scale construction projects.

Semi Truck Insurance_ Coverage Types, Costs & Tips to Save 5

9. Snow Plow and Seasonal Services

In areas that experience harsh winters, converting a semi-truck into a snow plow is a practical way to generate income when freight slows. Many operators partner with local governments or private snow-removal contractors to clear roads, parking lots, school zones, and distribution centers.

All you need is a plow attachment and possibly a salt spreader to get started. Plow operations typically run overnight or in early morning hours after heavy snowfall, offering a dependable seasonal workload that complements long-haul driving.

This is a strong diversification option for owner-operators who want to keep their trucks profitable throughout the winter months.

10. Oversized Load Transportation

If you’re ready to take on more complex freight, oversized hauling offers both challenge and reward. 

You’ll move loads that exceed standard U.S. limits of 8.5 feet in width, around 13 ½ feet in height, or 80,000 pounds in total weight, though exact thresholds vary by state. These include industrial equipment, bridge beams, turbines, and modular buildings.

Each run is a project in itself, requiring detailed route planning, permitting, and coordination with pilot vehicles to move safely through multiple jurisdictions.

You’ll need specialized trailers such as lowboys, extendable flatbeds, or multi-axle setups designed for heavy or awkward cargo. Because only a small number of drivers are qualified and properly equipped, demand often outpaces supply, creating room for higher-paying contracts.

Every mile takes more planning, but it also brings the satisfaction of mastering one of trucking’s most respected specialties.

11. Semi-Truck Driving School or Training Service

The trucking industry faces an ongoing shortage of qualified CDL drivers and is projected to need roughly 1.2 million new drivers over the next decade. Using your truck for driver training can be a profitable and stable business model.

You can register as a private CDL training provider or partner with local trade schools to offer behind-the-wheel instruction for new drivers.

Operating legally requires meeting FMCSA training standards, maintaining liability and vehicle insurance, and equipping your truck with dual controls or instructor access features. 

Once certified, you can train students year-round, creating consistent revenue while helping to strengthen the future trucking workforce. This path suits seasoned drivers who want to leverage their experience while spending less time on the road.

12. Green or Electric Truck Logistics

Recent market analysis shows that the heavy-duty electric truck market is set to grow from about USD 1.22 billion in 2023 to USD 4.70 billion by 2030, a compound annual growth rate of roughly 20.6%. 

Federal and state programs also now offer meaningful incentives and tax credits for carriers that invest in zero-emission trucks. For example, companies purchasing qualified commercial clean vehicles may receive tax credits of up to $40,000 under the Inflation Reduction Act (Section 45W). 

EV adoption is still in its early stages, which means there’s room for new drivers and small operators to establish themselves before the market becomes crowded.

Begin by researching which electric trucks qualify for federal or state incentives. Many states also offer grants or rebates to help cover charging infrastructure and fleet conversion costs.

Next, look at where freight electrification is expanding fastest. Regions with existing EV infrastructure, such as California and Texas, are ideal for new operators entering green logistics.

If you’re new to the industry, consider starting with short-haul or regional routes where charging access is reliable and downtime is limited. These routes allow you to build experience while keeping costs predictable and operations sustainable.

load transportation

How to Choose the Right Semi-Truck Business Idea

Choosing the right trucking business idea starts with understanding your budget, licensing, and local market conditions. Here’s how to narrow your focus and pick a niche that fits.

1. Startup Capital and Equipment Needs

Assess how much you can invest upfront and whether your current equipment aligns with your goals. Lower-cost ideas like local courier services or junk hauling are ideal if you already own a rig and want to start earning quickly. 

In contrast, car hauling or oversized freight requires specialized gear such as step-deck or enclosed trailers and higher insurance coverage.

If you’re still exploring equipment options, consider whether it’s smarter to buy a used commercial truck or upgrade to a new commercial truck that meets the demands of heavier or long-haul work. 

Matching your truck’s capabilities to your chosen niche can significantly impact both profitability and safety.

2. Licensing and Experience Level

Your credentials will determine which lanes are open to you. Drivers with CDL endorsements for hazmat, doubles/triples, or tanker loads can move into premium freight markets with higher per-mile rates. 

If you’re newer to trucking, consider starting with lower-barrier options like regional freight or short-haul deliveries to gain hours, refine your safety record, and build professional contacts before expanding.

3. Local and Regional Demand

Study what industries dominate your region. Agricultural hauling thrives across the Midwest and South, while construction hauling is strong in fast-growing metro areas. In northern states, snowplow and seasonal services provide a reliable winter income. 

Tailoring your services to local demand helps reduce fuel costs, maintain regular routes, and secure repeat business from area clients.

Finally, outline a simple business plan that maps your target market, startup costs, and growth goals. This not only helps guide your operations but also positions you for financing or partnership opportunities when you’re ready to scale.

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Startup Costs and Financing Options

To start your trucking business, you’ll also need to budget for permits, insurance, maintenance, and ongoing compliance. Here are some ranges to expect going into the 2026 market. 

Expense Category Typical Range Details
Commercial Truck Purchase $80,000 – $150,000 (new) or $40,000 – $70,000 (used) Cost depends on truck age, model, and specifications. Buying used can significantly lower startup costs.
Insurance & Licensing $9,000 – $16,000 per year Covers primary liability, cargo, and physical damage policies. Rates vary by state, cargo type, and driving record.
Fuel & Maintenance $50,000 – $70,000+ per year Fuel is typically the largest annual expense; maintenance includes tires, oil changes, and preventive repairs.
Permits & Registration $500 – $3,000+ Includes USDOT/MC numbers, IFTA registration, IRP plates, and state-specific operating authority.
Business Setup & Marketing $2,000 – $5,000 Covers business licensing, software, website setup, and branding or advertising for new carriers.

Financing Your Trucking Business with Mission Financial Services

Mission Financial Services simplifies commercial vehicle financing with direct-lending options designed for real owner-operators. There are no middlemen and no unnecessary fees.

Whether you’re purchasing your first truck, rebuilding after credit challenges, or expanding into a small fleet, we offer tailored loan programs, including:

With flexible repayment options, fast approval, industry-specific solutions, and a team that understands the trucking business, Mission Financial Services helps you stay on the road and in control of your growth.

Frequently Asked Questions

How Much Does It Cost to Start a Semi-Truck Business?

Startup costs typically range from $100,000 to $200,000, depending on your truck type, insurance, and operating permits. Many new drivers lower their upfront investment by leasing or financing their first truck through Mission Financial Services.

What Is the Most Profitable Semi-Truck Business Idea?

Freight hauling, oversized load transport, and car hauling often provide the highest earning potential. Actual profits depend on your operating costs, route efficiency, and contract rates.

Can I Start a Trucking Company With One Truck?

Yes. Many successful owner-operators begin with a single truck, building a customer base before expanding. As your revenue grows, you can add drivers or finance additional vehicles through Mission Financial Services.

Do I Need an LLC for My Trucking Business?

Forming an LLC isn’t legally required but is highly recommended. It helps separate personal and business assets, provides liability protection, and may offer tax advantages for independent truckers.

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Conclusion

Starting a profitable trucking business is absolutely within reach. All it takes is the right truck, the proper licensing, and a clear plan that fits your skills and long-term goals.

Whether you focus on freight transport, specialized hauling, or driver training, your semi-truck can become the foundation of a lasting business.

If you’re ready to take the next step, Mission Financial Services can help you secure financing for your truck. From first-time buyers to experienced owner-operators, we provide direct-lending solutions that simplify startup costs and support steady growth.

With the right plan (and the right partner), you can keep your business moving forward, mile after mile. Start your credit application with us today.

Cass transportation index

Cass Transportation Index | 2022 Key Points

Cass transportation index

If you work in the transportation and freight industry, then the Cass Freight Index is one of the most valuable resources available online.

This resource is used to understand transportation trends, volumes, and expenditures across the U.S. Since its conception, it’s been a valuable source of information in the industry.

In this guide, we’ll cover everything you need to know about the Cass Transportation Index and how it works. We’ll focus on some key points from the December 2022 index, mainly looking at the index insights into the trucking industry.

What is the Cass Transportation Index?

The Cass Freight Index measures the overall freight volumes and monthly freight expenditures in North America. The index has been published since 1955.

This index covers all intra-continental foresight shipments, including raw materials and finished goods. The index covers all modes of domestic transport, although truck hauls make up more than 75% of all activity.

The Cass Freight Index data is updated with monthly statistics on shipment volumes and expenditures. This data is important for understanding freight industry trends through an ongoing monthly comparison.

The Cass Freight Index is compiled by Cass Information Systems, an automated payment systems provider. Cass Freight Index shipments cover over 1200 divisions of more than 400 manufacturers and companies.

Other Indexes Related To The Cass Transportation Index

How to start a semi truck business

Cass Information Systems also produces the Cass Truckload Linehaul Index, which measures the fluctuations in U.S. domestic baseline truckload costs. The purpose of this is to separate the linehaul elements of truckload costs from other trucking cost components – such as fuel costs.

There is also the Cass Intermodal Price Index. With intermodal transport, the cargo stays in the same container while being transferred across different modes of transport. This index monitors changes across U.S. intermodal costs. So while the Linehaul Index only covers linehaul rates, this index monitors all costs.

There are also other indexes similar to the Cass Transportation Indexes, such as the Transportation Services Index compiled by the U.S. Department of Transportation (DOT), and the Morgan Stanley Proprietary Truckload Freight Index. These are all useful supply chain indicators and valuable resources for monitoring freight trends.

The Cass Truckload Linehaul Index

As mentioned above, the Cass Truckload Linehaul Index monitors baseline truckload costs in the U.S. This monthly index measures the market fluctuations in truckload linehaul rates per mile. This index provides an accurate indication of market fluctuations in truckload pricing in the U.S.

Because this index only looks at the linehaul component of truckload costs, the freight transportation industry can use it as an accurate reflection of trends in baseline truckload prices. As trucking makes up the vast majority of recorded Cass shipment volumes, this index offers some of the most valuable industry insights.

How is it Measured?

Data from the Truckload Linehaul Index comes from freight invoices paid on behalf of the entire Cass client base, a combination of contract and spot rates.

Highway

As Cass manages $44 billion in freight spending each year, this data provides meaningful insight into transportation industry trends.

To measure freight shipments in this index, the per-mile linehaul rates are monitored, independent of any other cost factors – like accessorials or fuel.

Key Points: Cass Transportation Index December 2022

The Cass Freight Index is a valuable source of information for anyone involved in the transportation industry. Here are some key takeaways from the December 2022 Cass Shipments Index:

  • Cass Freight Index shipments were measured at 1.161, a -3.9% year-over-year change.
  • Cass Freight Index expenditures were measured at 4.231, a -4.3% year-over-year change.
  • Freight rates are on track to fall 5% in 2023, based on the normal seasonal pattern of this index.
  • Cass Inferred Freight Rates were measured at 3.644, a -0.4% year-over-year change.
  • The index saw sharp declines in ocean rates and many commodity prices.
  • Expenditures in the Cass Freight Index rose 23% in 2022 after a record 38% increase in 2021.

Key Points From The Truckload Linehaul Index

  • Truckload Linehaul Index was measured at 150.54, up by 1.7% on a year-over-year basis.
  • Spot rates were down significantly on this index.
  • The larger contract market is adjusting downward more gradually.
  • New truckload contracts are mostly being renewed with notable rate reductions.

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Final Thoughts

If you’re going to stay on top of monthly trends in the freight and supply chain sector, then the Cass Index is possibly the best place to access this data. Understanding this index and monitoring monthly data changes will help any trucking and freight business make more informed decisions.

Looking at the key trends from the December 2022 report is important, as it helps you better understand the state of the industry going into the new year. This provides valuable insights into trends for the year ahead.

 

How to start a semi truck business

How To Start A Semi Truck Business | 8 Steps

How to start a semi truck business

The commercial trucking industry is a vital part of the US economy. Trucks move around 72% of all goods in the country. Starting a semi-truck business can be an excellent opportunity!
With the proper preparation and planning, a semi-truck business can be a successful and rewarding venture.

Let’s talk about how to start a semi-truck business.

Semi Truck Business Success | 8 Steps

Step 1: Research The Semi Truck Industry

Before you start a trucking company, it’s crucial to research the industry and understand the market. Look at the trends, the competition, and the potential customers. Understanding the industry will help you make informed decisions and ensure your business is booming.

For example, when researching the industry, you can start by looking at the current market trends. This can include investigating the demand for trucking services in different regions, the commonly transported goods, and the current rates for trucking services.

By conducting this research, you can better understand the industry and the market. You will be able to identify potential opportunities and challenges and make informed decisions about your business strategy.

Step 2: Create a Semi Truck Business Plan

Once you understand the industry well, the next step is to create a business plan. A business plan should outline your goals and strategies, and the steps you need to take to achieve them. It will also help you secure funding and attract investors.

business plan

A trucking company business plan should include the following key elements:

  • Executive Summary: A summary of the main points of the business plan, including the purpose of the business, the target market, and the critical strategies for achieving success.
  • Company Description: A description of the company, including the legal structure, ownership, and management team.
  • Market Analysis: An analysis of the industry, including the current market trends, the competition, and the potential customers.
  • Services: A description of the services that the business offers, including the types of goods that will be transported and the routes that will be covered.
  • Marketing and Sales: A description of the marketing and sales strategies, including the target market, pricing strategy, and promotional activities.
  • Operations: A description of the day-to-day operations of the business, including the logistics of transporting goods, the maintenance of the vehicles, and the management of the drivers.
  • Financial Projections: Financial projections for the business, including income statements, balance sheets, and cash flow statements from your business bank account.

Step 3: Obtain The Necessary Licenses And Permits

Starting your own trucking business requires obtaining the necessary licenses and permits. These include a commercial driver’s license and the authority to operate as a motor carrier.

For example, you will need to obtain several licenses and permits to operate a semi-truck business. These may include:

  • Federal Motor Carrier Safety Administration (FMCSA) Operating Authority: This is also known as an MC number. This is required for any company that operates commercial vehicles transporting goods in interstate commerce.
  • USDOT Number: This is a unique number assigned by the FMCSA to identify commercial motor carriers.

Man in truck

  • State Operating Permits: Some states also require a separate permit to operate within their borders.
  • Commercial Driver’s License (CDL): Drivers operating commercial vehicles, including semi-trucks, must have a CDL.
  • Vehicle Registration: Each vehicle used in the business must be registered with the state and have proper business insurance.

It’s important to note that the requirements for obtaining licenses and permits may vary depending on the state. It’s also crucial to comply with federal and state regulations regarding safety, insurance, and other operational standards.

Step 4: Secure Funding

Starting a semi truck business requires a significant financial investment, and securing funding is crucial.

Consider options such as traditional bank loans, equipment financing, or working with a lender specializing in the trucking industry.

Mission Financial Services is a preferred loan process agent for national and regional dealership chains and family-owned, independent, and franchised dealerships. They also offer loans to first-time buyers and loans to those with bad credit scores.

For example, if you want to start a semi-truck business with five trucks, you will need to purchase or lease the trucks, trailers, and other equipment. Additionally, you will need to pay for insurance, maintenance, and other expenses.

Starting the business may cost a significant amount, which may not be feasible to cover with personal savings or credit cards. In this case, you’ll need to secure funding through a loan or other financing options.

Handshake

Working with a lender specializing in the trucking industry, such as Mission Financial Services, can be helpful. They understand the specific needs and challenges of the trucking industry.

They may also offer financing options tailored to the needs of trucking businesses, such as loans for purchasing or leasing trucks and trailers or loans for covering operating expenses.

Step 5: Purchase Or Lease Trucks And Trailers

Once you have secured funding, focus on purchasing or leasing trucks and trailers. When it comes to purchasing or leasing trucks and trailers, there are pros and cons to each option.

Purchasing

Pros
  • Ownership: When you purchase a truck or trailer, you own it outright and have the flexibility to customize it to your business’s specific needs.
  • Equity: As you pay for a purchased truck or trailer, you build equity in the equipment.
  • Tax deductions: You can take advantage of tax deductions for the equipment, such as depreciation.
Cons
  • Upfront cost: Purchasing trucks and trailers requires a significant upfront investment, and it may not be feasible for businesses with limited capital.
  • Maintenance costs: As the trucking business owner, you are responsible for all maintenance and repairs, which can be expensive.
  • Depreciation: The value of the equipment will depreciate over time, which can impact the resale value.

Leasing

Pros
  • Lower upfront cost: Leasing requires a smaller upfront investment than purchasing, making it more accessible for businesses with limited capital.
  • Lower maintenance costs: Maintenance and repairs are often included in the lease agreement, saving money on maintenance costs.

  • Flexibility: Leasing allows you to upgrade to newer equipment more frequently, which can benefit businesses that need to keep up with new technology or regulations.

Cons

  • Lack of ownership: When you lease equipment, you don’t own it outright and may not have the flexibility to customize it to your business’s specific needs.
  • Limited equity: As you make payments on a leased truck or trailer, you don’t build equity in the equipment.
  • Higher costs in the long run: Leasing equipment over an extended period can cost more in the long run than purchasing it outright.

Consult with a transportation consultant or financial advisor to help evaluate your options and make the best decision for your business.

Step 6: Hire Drivers

Even as an owner-operator, a semi-truck business relies heavily on its drivers. Hiring qualified, professional drivers who can ensure the safe and efficient transportation of goods is essential. When hiring drivers, consider the following qualities:

  • Commercial driver’s license (CDL): Drivers operating commercial vehicles, including semi-trucks, must have a CDL.
  • Driving experience: Look for drivers with experience driving semi-trucks and a good driving record.
  • Knowledge of federal and state regulations: Drivers must be familiar with federal and state laws regarding transportation, including hours of service, inspection, and maintenance requirements.
  • Communication skills: Drivers must communicate effectively with dispatchers, customers, and other drivers.
  • Problem-solving skills: Drivers must be able to handle unexpected situations and make quick decisions.

Woman truck driver

  • Physical stamina: Driving a semi-truck can be physically demanding, and drivers must be able to handle the job’s demands.
  • Professionalism: Drivers and owner-operators must professionally conduct themselves and be able to represent the company in a positive light.
  • Safety-minded: Drivers must prioritize safety and follow safety protocols and regulations.

Step 7: Build A Strong Network

Building a solid network of contacts and relationships can benefit your business in the trucking industry.

Here are a few ways to build a strong network:

  • Join industry associations: Joining industry associations such as the American Trucking Association (ATA) can provide opportunities to connect with other trucking professionals and stay informed about industry trends and regulations.
  • Partner with other trucking companies: Consider partnering with other trucking companies to share resources and pool expertise.
  • Develop a good relationship with suppliers: Building a strong relationship with suppliers will help you keep costs down and deliver the goods on time.
  • Provide excellent customer service: Building a solid relationship with customers can lead to repeat business, positive word-of-mouth, and new business opportunities.

Connecting with other trucking companies, suppliers, manufacturers, distributors, and customers can help you gain new business, improve logistics, and stay informed about industry trends and regulations.

Step 8: Keep Accurate Records

Keeping accurate records is essential for the success of a semi-truck business. Here are a few benefits of keeping accurate records:

book keeping

  • Financial tracking: Accurate record-keeping can help you track your income and expenses and monitor the financial performance of your business. You can use this information to make informed decisions about your business and plan for future growth.
  • Compliance with regulations: Keeping accurate records can help you ensure compliance with federal and state laws. This includes keeping track of service hours, vehicle maintenance and inspection records, and driver qualifications.
  • Taxes: Accurate record-keeping can help you file taxes correctly and take advantage of tax deductions.
  • Auditing: Accurate record-keeping is essential. You may be subject to an audit by the Federal Motor Carrier Safety Administration (FMCSA) or other regulatory bodies.
  • Efficiency: Accurate records can help you improve the efficiency of your business. It does this by allowing you to track inventory and deliveries and manage staff and vehicles more effectively.

Final Thoughts

Starting a trucking company requires significant time, money, and effort. Still, it can be a successful and rewarding venture with the proper preparation and planning.

By following these steps and making informed decisions, you can start a semi-truck business that will thrive in the competitive commercial trucking industry in the US.

If you want to start your own trucking company, don’t hesitate to reach out to Mission Financial Services for loans and financing options.

How Inventory Shifts are Impacting Purchase Decisions

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When it comes to buying trucks and equipment, the majority of owner-operators prefer the used market, according to Overdrive’s Truck Purchase and Lease Survey. Out of all of the survey’s respondents, 56% of them reported buying used trucks, 32% bought new, and less than 10% leased their trucks or equipment.

However, while purchasing used trucks and equipment is preferred among owner-operators, finding said trucks and equipment at a fair price is more challenging than ever. Thanks to the COVID-19 pandemic and the delays in production, brought on by component shortages, many owner-operators are forced to consider other purchasing options.

Unfortunately, truck dealerships aren’t receiving much in the way of new inventory. In 2021, new trucks were being ordered, but they wouldn’t arrive until December. And, to top it off, fewer trade-ins are making their way onto the lots, thus pushing prices of used trucks through the roof. In 2021, used trucks retailed for the most they ever have in the modern era. For example, a used sleeper, with over 450,000 miles on it, sold for a little over $90,000. This price was approximately 85.5% higher than the previous year. And while some industry professionals anticipated a slow descent in used truck prices in 2022, others caved to the pressure of the market and sold off their fleets for substantial amounts of money.

Photo Credit: Overdrive

Are higher lending rates to come?

Industry experts also predict that new truck production will eventually catch up and balance out. Once trucks start rolling off of assembly lines, used-truck buyers will want to consider the potential financing impact new truck production could have on trade-ins with higher mileage than normal. 

Financing a used truck is already a challenge due to the higher risk lenders take since used trucks typically face engine problems. When the trade-ins that drivers clung onto in lieu of new inventory arrive at dealerships, they will arrive with higher mileage and a higher risk of performance issues. Thus, lenders will be even more hesitant when drivers request financing and likely raise lending rates.

For small fleets, experts believe it may be wise to consider extending the life of their trucks and equipment through maintenance rather than buying new or used. And for any owner-operators who are searching for a used truck in today’s market, they can also expect higher down payments. In fact, those just entering the industry should be prepared to put 25-35% down. Overdrive recently surveyed a group of drivers who recently bought a used truck to further prove the state of the market. They found that 38% of used-truck buyers paid in cash, and 57% of buyers financed with a bank loan or through a captive or specialty lender.

Is a lower interest rate possible?

Despite all of this, there are ways to acquire a lower interest rate on your loan. The main factors that lenders look at to calculate the monthly payment include your credit score, the model year of your truck, how much money you put down, the owner/driver’s business experience, and your resourcefulness. 

“I’d rather lend money to a guy with a 600 credit score whose father was an owner-operator, grandfather was an owner-operator, brother is a diesel mechanic, and maybe his credit score is down because of divorce,” Grivas said. “That’s a great risk compared to a guy with a 700 credit score who’s just getting started.” 

When buying a new truck, experienced owners and drivers can expect a single-digit interest rate. However, drivers financing a used truck will see interest rates ranging from 10-13% or higher.

How Mission Financial Services can help.

We understand that sometimes times are tough and we’re here to get you back on the road to financial independence. Whether you’re a first-time buyer, have limited driving experience, or have bad credit, we can help.

Mission offers direct lending for owner-operator purchases, lease purchase buy-outs, repair loans, and title loans for operating capital. And even better, we will perform a complete review of applications and get you an answer within four hours.

Our approvals are structured as simple interest contracts with limited terms that let you build equity in your loan quickly to avoid additional finance charges. Mission considers all applicants living in all states except Hawaii and Alaska. And we offer affordable loans and report to all major credit bureaus so you can start turning your credit around. Why wait?

Get Started Today

More like this:

→ How is the Microchip Shortage Affecting Truck Prices in 2022?

→ Rising Fuel Prices: An Ongoing Problem for Drivers

→ How Does Prop. 22 Affect App-Based Drivers?

 

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