Maintenance & Repair

The Importance of Semi-Truck Repair Loans

Recently, the trucking market has taken a nosedive due to the severe vehicle and parts shortage that has been wreaking havoc since 2020. With the current inventory not meeting industry demands, the market for these vehicles has become insanely competitive. In fact, in July of this year, Class 8 vehicles and other heavy-duty trucks sold rapidly while their prices spiked at a year-over-year rate. According to the ACT, unit sales went up by 26.6% compared to last year’s numbers and prices of Class 8 vehicles increased by at least $77,000. Unfortunately, due to the current state of the world, there’s no guarantee as to when inventory or prices will balance back out.

Those who already have a running rig have an advantage over the new drivers entering the buying and selling arena. However, if your truck breaks down and is in need of parts or a serious repair, you may find yourself in the same situation as green truckers. 

→ Everything You Need to Know about Annual Semi-Truck Maintenance

The truth about used truck repairs

On average, a single truck driver travels anywhere from 45,000 to 100,000 miles per year. And with working hours and delivery demands regularly increasing, it can be easy to forget about scheduling regular or preventive maintenance. However, for used trucks, care is crucial for keeping your rig on the road, especially amid the current inventory shortage.

It’s also important to prepare and plan for the inevitable repairs that come with owning a used or older truck. As an owner/operator, it’s vital to keep essential tools in your cab so you can solve common repairs on the fly and stay on schedule. 

The most common used truck repairs include:

• Brake issues
• Diesel emissions repairs
• Engine overheating
• Starter failure
• Tire repairs
• U-joint failure
• Wheel bearings

If you want to be extra careful, be sure to prepare your vehicle for the various seasons and the weather conditions that come with them, like high temperatures in the summer and icy roadways in the winter.

→ 5 Most Common Truck Problems and Repairs

The impact of the vehicle shortage

As previously mentioned, since the start of the COVID-19 pandemic, automotive manufacturers and parts manufacturers have been battling a labor decline and production delays brought on by the effects of the coronavirus. These obstacles eventually caused a massive vehicle and parts shortage that still affects dealers and consumers globally. Once cases declined and businesses began reopening, manufacturers assumed they’d be able to ramp up production and compensate for the lack of product. However, they did not anticipate their suppliers being hit by a wave of various natural disasters, further causing more closures and setbacks. Dealers saw no end in sight and began offering extreme incentives and personalized financing plans to move stagnant inventory, not realizing they’d be left with virtually nothing in the way of new and used stock. This move ultimately solidified the shortage that companies and consumers are still battling to this day.

Unfortunately, this shortage has had a significant effect on the trucking industry. Newer truck production is still moving at a snail’s pace due to a large raw materials shortage, and truck dealers are experiencing drops in sales of up to 0.6% month-over-month. Under these circumstances, drivers could sell their used rigs and receive top-dollar, but it would be unwise if they plan on using that money to buy a new or used truck, seeing as how neither really exists at the moment. Shippers are also continuing to pay higher premiums for transportation due to the disruptions in the supply chains. The DAT suggests that spot and contract rates are higher than they’ve ever been while freight volumes decreased by about 8%. To top it all off, drivers are experiencing port congestion, unloading delays, a tighter intermodal capacity, and more freight than the commercial trucking industry can handle, especially as the holidays move in.

→ Where Did All of the Trucks Go?

How semi-truck repair loans can help

As a truck driver, your vehicle is your lifeline. When it breaks down or needs parts and repairs, your income and livelihood are on the line. And if the repairs or parts required aren’t within your budget, you could be facing quite the predicament. Fortunately, companies like Mission Financial Services can help by offering specialized commercial vehicle repair loans. These loans assist in covering the cost of repairs and help get your rig back on the road. 

With older or used vehicles, you’re more likely to face frequent, costly repairs than newer trucks, especially if you’re operating at a higher capacity. That’s why it’s crucial to have a personalized repair loan at the ready to protect your investments and income. 

For added protection, companies like Mission Financial Services offer a multitude of specialized loans and financing offers, including:

• Repair loans
• Commercial vehicle title loans
• Personal loans
• And refinancing options

→ What are your options to cover the cost of semi-truck repairs?

Why wait?

To obtain a commercial vehicle repair loan, you will need to complete and submit three online forms, including a credit application, vehicle spec sheet, and sales order. You will provide your contact information, your past and present employer, income specificities, and any previous financing information for your credit application. The vehicle spec sheet will require information like make, model, vehicle I.D. number, and mileage so you can obtain the best loan that fits your exact needs. The sales order will show the sales price of your commercial vehicle as well as its taxes and fees.

In 2005, diesel engine manufacturers weren’t entirely sure how to attain the EPA’s future emissions regulations and standards. Ultimately, they were faced with having to think on their feet and start inventing new parts and systems if they planned on staying in business. 

Not surprisingly, the industry delivered. The invention of SCR systems used fluid formulas to scrub nitrous oxides out of the diesel exhaust smoke chemically. This led to cleaner air and gave a much-needed boost to big rigs’ fuel economy. Experts say aftertreatment systems reduced harmful emissions by up to 90% for hydrocarbon and carbon dioxide and up to 50% in particulate matter.

While trucking companies and engine manufacturers feel the systems have proven safe and reliable, many aren’t fans of the amount of maintenance requirements to keep them functioning correctly. 

→ Top ways to prepare for roadside inspections 

The reality of diesel emissions maintenance

Many don’t realize that before implementing the aftertreatment systems, private long-haul fleets were averaging around $1,200 per month on exhaust system maintenance, such as replacing a rusted or cracked pipe or fixing a turbo failure. Once the SCR systems were installed, companies were hit with an average of $27,000 per month in repairs. This 1,837% increase in expenses left fleet owners at a loss for words. We know what you’re thinking—how does any amount of maintenance add up to almost $30K per month? For optimal performance, today’s diesel emissions systems require EGR coolers and valves, diesel particulate filters, DEF dosing systems, and several sensors to work together in perfect harmony. If one item malfunctions or needs repair, the system will fail and force the heavy-duty rig and its driver to cease all operations, leaving the fleet owner with a severe financial burden.

→ Tips for tire maintenance and repair 

The actual cost of diesel emissions repairs

In 2017, the American Trucking Associations’ Technology & Maintenance Council began monitoring various repairs and the costs associated with them to help fleets analyze how their fleets’ performance could be improved and, in turn, limit expenses. When data was first collected, exhaust system repairs were approximately $513; a year later, they increased by 27%, putting them at $405 per repair. Today, the costs are still rising as new technology, parts, and companies emerge. 

Understandably, fleet owners and operators are tired of these looming and ever-increasing prices. However, the TMC found that these repairs wouldn’t be necessary with a bit of forethought.

Heavy-duty emissions maintenance tips

To combat costs and constant repairs, fleets have decided to operate outside of the aftertreatment system manufacturer’s recommendations. While the suggested intervals for repair and maintenance are fair in ideal scenarios, companies have quickly realized that it’s more effective to operate based on actual variables. These variables include truck usage, geography, fuel quality and consumption, weather conditions, applications, and more. After seeing how all these factors played a role in SCR system repairs, it became clear that investments in in-house equipment and technicians were necessary. 

Another way to limit expenses is to perform routine cleanings, checks, and maintenance every 100,000 miles instead of the OEMs’ recommended 400,000 miles. Companies have also started looking at other vehicle functions to determine if they may be behind emission failures. For example, a simple fluid leak could be the cause of a reoccurring problem versus a malfunctioning sensor. 

All of these preemptive measures will undoubtedly reduce costs and downtime, allowing more money to be available for improving your fleet.

→ 5 common truck problems and their repairs