Uncategorized

Mission Financial Services Key Insight On Used Truck Sales In Transport Topics News

Charles Smith, Regional Business Development and Marketing Manager at Mission Financial Services, was recently featured in Transport Topics. The article highlighted the significant uptick in used Class 8 truck sales during April 2025 and shed light on a very important insight: the importance of building relationships with customers.

If you haven’t read that article, don’t despair. We’ve explored the industry context behind that article, Charles’ insights on market dynamics, and the Mission Financial Services approach to market challenges, right here.

Industry Context: April 2025 Used Truck Sales Surge

For industry context, let’s look at the used Class 8 truck market and examine the pricing and mileage trends that Transport Topics discussed.

Market Overview

First, it’s been a good time for used Class 8 truck sales. Used truck sales increased for a second month in a row in April 2025. The April figures showed a 3.5% year-over-year gain with a total of 23,600 units sold, and a 4.4% month-to-month jump, too!

This consistent growth demonstrates sustained demand despite broader economic uncertainties. It shows that trucking businesses are investing in equipment despite challenging conditions. It also reflects the essential resilience of commercial transportation.

Pricing and Mileage Trends

The average retail sale price decreased by 1.9% year-over-year to $58,132. Another interesting trend is the reduction in average mileage these used trucks have. It decreased by 4.5% to 400,000 from 419,000, a year ago.

This tells us that newer inventory is entering the used market, providing buyers access to equipment with a longer remaining useful life.

That’s good news for small trucking fleets and owner-operators with budget constraints. It means that buying a used Class 8 truck is more affordable. And lower-mileage vehicles also typically qualify for better loan terms and longer repayment periods.

Charles Smith’s Insights on Market Dynamics

It’s time to turn our attention to the insights Charles Smith shared with Transport Topics.

Navigating Economic Uncertainty

Smith didn’t shy away from the reality of current market conditions. “Used truck sales are, I’m not going to say down, but they’re stagnant right now.”, Smith observed.

He voiced what those in the truck sales industry have been thinking. Potential buyers have struggled with economic uncertainty. Many businesses adopt the wait-and-see approach rather than buying another truck, even when they desperately need to.

This reflects broader economic concerns that impact capital allocation decisions across the trucking industry. The stagnant market conditions he described align with feedback we receive from customers, especially owner-operators, concerned about uncertain future freight demand and operating costs.

Emphasis on Relationship Building

Despite widespread economic challenges, we at Mission Financial Services have maintained growth. And the reason? Charles’ words sum it up best: “It’s about building relationships and, I think, that was a big part of the growth for us.”

He credited the company’s recent sales to working even harder to reach and engage potential buyers. And he explained that building relationships with customers and dealership partners was central to our success.

Mission Financial Services’ Approach to Market Challenges

Mission Financial Services is no stranger to economic difficulty. But we have learned to overcome the obstacles through proactive engagement and collaborative partnerships.

Proactive Engagement

At Mission Financial Services, we take a proactive approach to sales. To quote Charles again: “We’re out pounding the pavement, knocking on doors, still trying to get the ones that are looking to purchase.”

This proactive engagement strategy reflects a crucial truth: successful lending requires ongoing market presence and customer education. Rather than simply waiting for applications to arrive, we actively engage with trucking businesses to understand their needs and provide the best solutions.

Collaborative Partnerships

As Charles emphasized in the interview, dealership partnerships play a critical role in facilitating successful transactions during challenging market conditions. And these are the relationships that enable Mission Financial Services to provide seamless financing solutions.

We recognize that strong dealership partnerships create value for all stakeholders involved in commercial trucking transactions.

Dealers benefit from reliable financing options for their customers, while buyers gain access to streamlined application processes and competitive terms. Our collaborative approach ensures that all financing considerations support, rather than complicate, equipment purchases.

Looking Ahead: Anticipating Market Trends

Several factors will influence used truck sales throughout the remainder of 2025. Freight demand patterns, regulatory changes, and broader economic conditions will all influence the decision to purchase equipment.

But we cannot deny that the financial benefits of used trucks extend beyond the initial purchase. They offer lower depreciation rates, reduced insurance premiums, and accessible financing options. And it’s factors like these that help smaller trucking businesses stay in business and remain profitable.

Therefore, it’s no surprise that the global used truck market is predicted to grow and reach 64.66 billion USD by 2030.

We anticipate that successful trucking businesses will focus on strategic equipment investments that support long-term operational efficiency. This approach requires careful evaluation of financing options and partnership with lenders who understand industry dynamics.

Our Promise to You

Here at Mission Financial Services, we’re still doing what we’ve always done, helping our customers get the financing they need.

However, we understand that small trucking businesses are hesitant to expand their fleet or undertake repairs to their existing fleet at this time. That’s why we’re adapting our programs to support customer success in evolving market conditions.

We guarantee you’ll still enjoy easy access to financial solutions and competitive loan terms. But you’ll also enjoy the service and support you deserve, with solutions that fit your finances regardless of market fluctuations.

Conclusion

We’re very proud that one of our own, Charles Smith, was featured in Transport Topics. He deserves the recognition, and we appreciate the publication’s faith and trust in our expertise. But we’re even more proud of the countless success stories we’ve helped to build with our financing solutions.

At Mission Financial Services, we remain committed to supporting trucking businesses and helping them achieve their business objectives. And we look forward to continued engagement with the trucking community, well into the future.

ABS Equipment Loan Delinquencies Spike In May 2025

Asset-backed securities (ABS) are a financial investment backed by a pool of assets, such as loans. Such loans offer benefits to investors, lenders, and borrowers alike. But they are still vulnerable to losses from loan delinquency. And in May 2025, 60-plus day delinquencies for ABS equipment loans spiked.

What is behind these recent ABS equipment loan delinquencies, and what are the implications? We examined the subject of ABS loan delinquencies, their most common root causes, and how to mitigate the risks.

The Current Landscape of Equipment Loan Delinquencies

Recent data from Kroll Bond Rating Agency’s (KBRA) Equipment Loan & Lease Index reveals that 60-plus-day delinquencies in equipment loan and lease ABS surged by 34 basis points (bps) month-over-month in May 2025.

Small to medium-ticket delinquencies jumped 22 bps month-over-month, while large-ticket delinquencies increased 41 bps. Year-over-year, there was an increase of 1,8% in these delinquencies in the current period. This indicates that stress has been building within equipment financing portfolios for some time.

According to Joanne DeSimone, managing director of commercial ABS at KBRA, the increase, specifically of large-ticket delinquencies, “has been driven over the past two years by the stress in transportation assets, the stress in trucking”.

Factors Driving the Increase in Delinquencies in Asset-Backed Securities

Let’s consider the factors driving these delinquencies.

A Symptom of a Larger Problem

Delinquency rates have been increasing across various types of loans for some time. Auto loan delinquency rates, especially, have been increasing across credit scores and income levels. Therefore, we can see that Americans have been struggling to keep up-to-date with loan payments across the board.

Inflation

Rising inflation is often a factor in loan delinquency. Inflation affects the cost of loan repayments. Even a modest rise increases the cost of goods. Even a modest rise increases the cost of goods. And that can make it more difficult to keep up with loan repayments as well.

Equipment loans are crucial for enabling trucking companies to remain operational. But if they’re paying more for essential goods and services, business owners may have to allocate more resources toward basic operations, compromising their ability to service debt obligations.

Low Business Confidence Due to Economic Uncertainty

When businesses feel confident about their future potential, they are more likely to do what it takes to grow their operations. That includes repaying loans, because they know that they will be able to afford it. However, business confidence, especially in smaller businesses, has been weakening.

And the main reason behind that is the economic turbulence that has been plaguing the US. Inflation, monetary policy, freight slowdown, and trade tariff uncertainty have all impacted the economy. This can make small fleet owners fearful of the future and less likely to prioritize loan repayments.

Industry-Specific Factors

Other factors influencing loan delinquency amongst trucking companies are more industry-specific.

The North American trucking industry in 2025 is grappling with various issues, including inflationary pressures from tariffs, trade policy shifts, and market realignments. Freight volumes also remain conservative.

Fuel costs, maintenance costs, labor expenses, supply chain disruptions, and trucking market volatility create a squeeze on cash flow, pushing loan payments to lower priority levels.

And the FMCSA’s proposed regulatory changes add further stress on smaller fleets.

Implications for Stakeholders in Equipment Finance

What are the implications of ABS equipment loan delinquencies for stakeholders?

Lenders

The spike in ABS equipment loan delinquencies creates ripple effects throughout the financing ecosystem. Lenders rethink their risk management strategies and underwriting criteria. Investors worry about returns and portfolio performance.

Investors

The rise in ABS equipment loan delinquencies and the uncertainty they cause can lead to reduced appetite for new ABS issuances. This can potentially constrain the flow of capital into loan and lease pools.

Borrowers

Trucking businesses and other equipment-dependent operations that rely exclusively on traditional bank financing or ABS loans may find themselves vulnerable. This signals the importance of diversifying financing sources and maintaining strong relationships with specialized lenders.

Equipment Manufacturers

The broader implications extend to the equipment manufacturers and dealers.

Equipment loan and lease pools have shown resilience despite economic challenges. However, as delinquencies rise and lenders become more selective, commercial truck manufacturers may need to explore alternative financing partnerships or develop solid internal financing capabilities.

Mitigation Strategies

Successful navigation of the current environment requires proactive approaches from manufacturers, lenders, investors, and borrowers.

For Manufacturers: Seek Industry-Leader Partnerships

Manufacturers of other trucking equipment can increase their sales figures by partnering with trusted lenders. But they should seek out financing partners that are dedicated to the industry, like Mission Financial Services.

For Lenders: Develop More Stringent Evaluation Methods

Current evaluation methods may not adequately capture emerging risks in the equipment financing space. Lenders should start implementing more stringent qualification requirements and potentially adjust pricing to reflect higher risk levels.

For Investors: Focus on Risk Assessment and Portfolio Diversification

Investment is always risky, even with traditionally resilient asset-backed securities. Portfolio diversification can reduce the risks associated with a truck-centric only portfolio.

The constant default rate (CDR) helps investors understand the potential for losses in ABS loans. Investors should pay more attention to risk management based on the CDR.

For Borrowers:

Trucking companies can strengthen their financing positions by maintaining detailed financial records and prioritizing financial management. They should explore specialized financing options designed for their industry’s unique characteristics, such as Mission Financial Services.

The Outlook

The outlook for equipment financing markets depends largely on broader economic challenges and policy responses.

When inflationary pressures moderate and interest rates stabilize, we may see improvement in delinquency rates. However, businesses should prepare for continued volatility and maintain conservative financial management practices.

Moving forward, we expect the equipment financing landscape to evolve as lenders adapt their strategies and borrowers adjust their approaches to capital management. Success will depend on flexibility, preparation, and correctly aligning financing with overall performance and long-term business objectives.

Conclusion

The spike in ABS equipment loan delinquencies during May 2025 demands attention from all equipment financing ecosystem stakeholders.

But most importantly, trucking businesses must practice stronger financial management and find lenders who understand industry-specific challenges. The current environment, while challenging, also creates opportunities for businesses that can demonstrate strong operational performance.

Trucking businesses taking proactive steps to address financing challenges will be better positioned to weather current market conditions. And Mission Financial Services is ready to meet their needs with favorable terms despite broader market constraints.

Understanding Owner-Operator Semi-Truck Insurance & The Requirements

One of the most important factors in running a successful trucking business is having the right insurance. As an owner-operator, comprehensive owner-operator semi-truck insurance is essential to protect your equipment and income.

You may be running your trucking business independently with a truck or trucks that you own. Or you could be leasing trucks from a motor carrier. Either way, knowing what insurance you need helps you make better business decisions.

We’ve examined the required coverages, optional protections, and key cost factors every owner-operator should understand to keep their business running safely and legally.

Mandatory Insurance Requirements for Independent Owner-Operators

There are many categories of owner-operator semi-truck insurance to choose from, but these two are mandatory.

Primary Liability Insurance

Primary liability insurance is at the heart of commercial trucking coverage. The coverage protects against bodily injury and property damage claims resulting from accidents involving your commercial vehicle.

The Federal Motor Carrier Safety Administration (FMCSA) requires owner-operators to carry a minimum of $750,000 in liability coverage. Most owner-operators choose coverage levels significantly higher than these minimums to provide adequate protection against potentially expensive liability claims.

Cargo Insurance

Cargo insurance protects the freight you transport from loss, damage, or theft. The FMCSA requires minimum cargo coverage of:

$750,000 for general freight
$300,000 minimum for household goods
$1 million to $5 million for hazardous materials, depending on the cargo class.

Many shippers may require proof of higher cargo insurance limits before allowing you to haul their freight. Typical cargo insurance policies range from $400 to $1,800 per year per load, depending on the value and type of goods being transported.

This owner-operator truck insurance coverage applies when cargo becomes damaged due to collision, fire, theft, or other covered perils. Some policies exclude certain types of cargo or require additional endorsements for specialized freight, such as electronics or high-value commodities.

Optional but Recommended Coverages

Here are a few more types of owner-operator semi-truck insurance for you to consider.

Most US states follow federal insurance coverage standards, but some states impose stricter policies for truckers operating exclusively within their borders. Owner-operator truckers should research their state’s specific regulations before hitting the road.

Physical Damage Insurance

Physical damage coverage helps pay to repair or replace your truck and trailer if they’re damaged. Federal law does not require it, but most lenders do before financing your equipment. This insurance typically includes two parts: comprehensive and collision coverage.

Comprehensive coverage protects against non-collision losses like theft, vandalism, fire, and weather damage.
Collision coverage handles damage from accidents, regardless of fault. Together, these coverages ensure you can repair or replace your truck after covered incidents.

Coverage is typically based on the value of the truck.

Non-Trucking Liability for Independent Contractors (Bobtail Insurance)

Non-trucking liability insurance, often called bobtail insurance, covers you when you’re driving your truck without a trailer or freight. It applies when you’re using your truck for personal reasons or when deadheading to pick up a load.

A standard liability policy only covers you while you’re under dispatch, so bobtail insurance helps fill that gap by protecting you during non-business use. It usually offers the same coverage limits as your primary liability policy but costs much less.

How much will this owner-operator insurance cost? It can vary based on your driving record, experience, and coverage limits selected. Most policies offer flexible benefit structures to match your specific needs and budget. Most owner-operators find bobtail insurance essential for complete protection.

Occupational Accident Insurance

Occupational accident insurance provides medical coverage and disability benefits for work-related injuries. Traditional workers’ compensation doesn’t cover owner-operators since they’re independent contractors rather than employees.

This coverage helps pay medical bills and provides income replacement if you become injured while working. Benefits typically include medical expense coverage, disability payments, and accidental death benefits.

General Liability Insurance

General liability insurance protects against claims not covered by your primary liability owner-operator semi-truck insurance. This coverage handles slip-and-fall accidents, property damage during loading or unloading, and other non-vehicular incidents.

The coverage proves especially important when working at customer locations or handling freight. Loading dock accidents, equipment damage, and third-party injuries fall under general liability protection.

Trailer Interchange Insurance

Trailer interchange insurance covers damage to trailers you don’t own but use under interchange agreements. This coverage applies when hauling trailers belonging to other motor carriers or shippers.

The coverage protects against collision damage, theft, and other physical damage to borrowed trailers. Without this insurance, you could become personally liable for expensive trailer repairs or replacement
costs.

Most interchange agreements require proof of trailer interchange coverage before allowing you to haul their equipment. The coverage typically includes collision and comprehensive protection similar to your truck coverage.

Factors Influencing the Cost of Insurance Premiums

Several factors affect how much you’ll pay for owner-operator semi-truck insurance:

Driving record: A clean record can help you get lower premiums. Recent accidents, tickets, or violations can mean higher premiums due to the increased risk.
Experience: New drivers usually face higher premiums than those with years of safe driving. Some insurers offer discounts after three to five years without incidents.
Cargo and routes: What you haul matters. General freight tends to cost less to insure than hazardous materials or high-value loads. Where you drive also plays a role, as urban areas and certain regions are rated as higher risk.
Truck specifics: The age, value, and safety features of your truck can influence physical damage premiums. Newer trucks equipped with anti-theft devices, electronic logging devices (ELDs), and collision avoidance systems often qualify for discounts.
Credit history: Insurers increasingly consider credit scores, viewing good credit as a sign of responsible business management. Poor credit can lead to higher rates or limited coverage options.

By understanding these factors, you can better anticipate costs and explore ways to save on premiums for owner-operator semi-truck insurance.

Average Cost for Different Coverages

Owner-operators leased to a motor carrier are usually covered by the company’s auto liability and cargo insurance. Owner-operators running under their own authority typically spend upwards of $15,000 per year on insurance.

The total cost depends on the factors mentioned earlier. Rates can climb higher if you choose higher coverage limits or have a less-than-perfect driving record.

Liability insurance is usually the biggest expense, costing around $12,000 and often much higher per year. Cargo insurance can cost anywhere from $400 to almost $2,000 annually, depending on the type of freight and the amount of coverage you need.

General liability coverage is relatively affordable, typically costing about $500 to $800 per year. Despite its low cost, it adds valuable protection to your insurance program.

Physical damage insurance coverage varies widely based on your truck’s age, value, and the deductible you choose. Newer trucks generally cost more to insure because they’re worth more. Older trucks might be better suited for liability-only coverage, especially if repair costs could exceed the truck’s value.

5 Tips for Reducing Insurance Coverage Costs

Different insurers specialize in various market segments. Compare quotes from several companies to find the best pricing.
Increasing deductibles reduces premiums but requires more out-of-pocket expenses during claims. Balance deductible levels with your financial ability to pay costs during accidents.
Many insurers offer premium reductions for policyholders using safety technologies. ELDs, dash cams, and collision avoidance systems demonstrate your commitment to safe operations.
Maintain a clean driving record. Avoid tickets, accidents, and violations that could increase premiums. Defensive driving courses might qualify for additional premium discounts.
Consider bundling coverages with a single insurer. Many companies offer discounts when you purchase multiple policies from them. This approach also simplifies your insurance management.

Choosing the Right Commercial Trucking Insurance Provider

Selecting an insurance provider with commercial trucking expertise ensures you receive appropriate coverage and competitive pricing. Trucking-specialized insurers understand industry risks and offer tailored owner-operator semi-truck insurance protection.

When evaluating potential insurers, ask about their claims handling procedures and response times. Quick claims processing keeps you on the road and minimizes income disruption. Look for insurers with exceptional customer service, 24/7 claims reporting, and a dedicated team for trucking claims.

Financial stability ratings indicate an insurer’s ability to pay claims. Ensure your chosen company maintains a strong financial position. Financial stability ratings indicate an insurer’s ability to pay claims.

Consider the insurer’s service reputation within the trucking community. Online reviews, industry associations, and fellow drivers provide valuable insights into customer service quality. Good service becomes especially important during stressful claim situations.

Evaluate policy terms carefully, not just premium costs. Some insurers offer lower prices but include restrictive terms or limited coverage. Understand exclusions, deductibles, and coverage limits before making decisions.

Conclusion

Owner-operator semi-truck insurance is designed to protect owner-operators against the various hazards of operating a trucking business. However, careful consideration should be given to mandatory requirements, optional coverages, and cost factors.

Understanding these elements helps you make informed decisions that protect your business and comply with federal regulations.

At Mission Financial Services, we understand the challenges owner-operators face in building successful businesses. Our specialized lending solutions help you acquire the equipment needed to grow your operations while maintaining the financial flexibility to invest in proper insurance coverage.

Contact us for help with your truck financing. Whether you’re a first-time buyer or expanding your fleet, we’re here to support your journey toward financial independence in the trucking industry.

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.

Logistics - proud driver or forwarder and female coworker, in front of trucks and trailers, on a transshipment point, its a good and successful team

Commercial Truck Registration & License Plate Costs: Your Complete Guide

Running a successful trucking business requires careful financial planning, and understanding commercial truck registration costs plays a crucial role in your budgeting process.

We know that navigating the world of state fees, weight classifications, and regulatory requirements can feel overwhelming for small trucking businesses and owner-operators. So we created this guide that breaks down everything you need to know about cost factors for commercial truck license plates.

Factors Influencing Registration and Commercial Truck License Plate Cost

How much does it cost to register a semi-truck, and how much do commercial truck license plates cost in general? That question does not have a simple answer because commercial truck registration costs can vary significantly based on several key factors.

Understanding these variables helps you anticipate costs and budget accordingly for your trucking operations.

Vehicle Weight

Semi-truck registration is often much more expensive than regular motor vehicle registration. The main reason? Your truck’s weight classification is the primary factor determining the cost of your registration and commercial truck license plates in most states.

A semi-truck can weigh anywhere from 10,000 pounds without the trailer to 35,000 pounds with the trailer added. That’s why the various states typically use one of these weight measurements:

Gross Combined Weight Rating (GCWR): The maximum loaded weight of a semi-tractor and trailer combined.
Gross Vehicle Weight Rating (GVWR): The maximum loaded weight of any single vehicle, as specified by the manufacturer.
Unladen weight: The weight of your empty tractor and trailer.

Many states structure their fees on a sliding scale, where heavier vehicles pay more than lighter ones.

Value/Type

Some states use a formula to calculate the cost of your semi-truck registration based on the truck’s value.

The type of commercial vehicle also influences costs. Tractors typically carry higher registration fees than trailers, and specialized vehicles like hazmat transporters may face additional charges. You’ll also need a DOT number if you plan to drive passengers, transport hazardous materials, or deliver interstate freight.

Location & State-Specific Registration Fees

Your business location determines which state’s fee structure applies to your primary registration. Each state develops its fee structure based on local transportation and revenue requirements. Some states favor flat-rate systems, while others implement tiered pricing.

Western states may be able to charge higher fees due to increased infrastructure demands from heavy freight traffic. Mountain states may add surcharges for vehicles operating in challenging terrain conditions, and agricultural states sometimes offer reduced rates for farm-related commercial vehicles.

Local/Interstate Operations

The cost of the license plate varies depending on whether it’s for local or interstate use.

If you operate your trucking business across national borders or in multiple states, you must apply for apportioned plates through the International Registration Plan (IRP). This distributes fees across participating jurisdictions based on your mileage.

If you operate locally, in your city, or across your state, you only need a local plate.

Additional Commercial Motor Vehicle Fees and Surcharges

Beyond base registration fees, you’ll encounter various additional charges that can significantly impact your total costs:

Many states impose additional taxes to fund highway maintenance and construction.
Annual or biennial safety inspections may be required, adding $50-150 to your costs.
You could face processing charges for paperwork and documentation.
Some states charge an extra county fee or additional fees for emissions testing or environmental compliance.
Separate charges can apply for physical plates and title documentation.

State-Specific Commercial Vehicle Registration Cost Examples

Registration costs vary dramatically across the United States. You could pay anywhere from a few hundred dollars to over two thousand. The figures vary based on specific vehicle characteristics, local jurisdictions, and current fee schedules.

But here are some examples:

If you’re based in Alabama, you may pay up to $890, depending on the type of truck or truck tractor and its gross weight. Gross vehicle weight also influences registration costs in Alaska, Arizona, Florida, Indiana, Louisiana, Michigan, Missouri, and Nevada.
In Arkansas, you’ll pay $21.50, plus an additional charge per 1,000 pounds. Costs are scaled by vehicle weight in Georgia, Kentucky, New Jersey, and Vermont, too.
In California, registration and licensing are not your only expenses to worry about. Environmental regulatory fees apply. The Golden State has a Clean Truck Check compliance fee of $30, which will be raised to $32.13 in January 2026.
Situated in Delaware, Iowa, Maryland, Minnesota, Nebraska, or New York? Your registration costs are calculated based on your truck’s weight classification. The same goes for Oregon, South Dakota, and Washington.
In Idaho, the costs depend on weight and vehicle type. But if you’re registering your truck in Illinois, the costs are determined by the vehicle’s weight and intended use.
Meanwhile, in Colorado, what you pay is based on the year of manufacture of the vehicle and the original taxable value.

Staying Compliant with Registration Requirements

The owner, and not the driver, is responsible for registration and licensing costs unless you are a solo owner-operator and are therefore both the owner and driver. However, someone with permission to represent the owner may also submit registration documents and obtain license plates.

Maintaining proper registration compliance protects your business from costly penalties and operational disruptions. Registration periods and the required fees are provided on the registration form or renewal form. We recommend developing a systematic approach to managing your registration obligations.

Regular Renewal of Registrations and License Plates

Most states require an annual fee, though some offer multi-year options. Mark your calendar 60-90 days before expiration dates to ensure timely renewal and avoid late fees. Set up automatic reminders for each vehicle in your fleet so that you always pay on time and avoid penalties.

Many states offer online renewal systems that streamline the process, with digital copies on file. But keep physical copies of all registration documents in each vehicle, too.

Keeping Current with Regulatory Changes

State regulations and fee structures change, and often it’s with little advance notice. Subscribe to your state’s motor vehicle department newsletters and notifications to stay informed about upcoming changes.

Also, join trucking associations and industry groups that monitor regulatory developments. These organizations often provide early warnings about fee increases or new requirements that could affect your truck drivers and business operations.

Maintain relationships with compliance professionals who specialize in commercial vehicle regulations. Their expertise can help you navigate complex changes and ensure your business remains compliant.

Review your registration status quarterly to identify any discrepancies or missing documentation. Address issues promptly to avoid penalties.

Budgeting Tips for Your Commercial Motor Vehicle Registration Costs

Treat registration costs as a fixed operating expense in your annual budget. Calculate your total registration expenses for the year and set aside funds monthly to cover these costs.

Consider the following strategies to manage registration expenses:

Budget 5-10% above current fees to account for potential rate hikes.
Explore multi-year options: Some states offer discounts for multi-year registrations.
Maintain accurate records, as proper documentation prevents costly re-registration fees.
Consider fleet consolidation: By reducing vehicle count, you can significantly lower total registration costs.
Stagger the renewal dates if you operate multiple vehicles. This distributes costs throughout the year, preventing large lump-sum payments that strain your cash flow.

Conclusion

Understanding registration and commercial truck license plate costs will help you budget effectively and maximize profitability. State licensing and registration fees vary widely based on vehicle type and weight, location, and business operations.

Research state-specific requirements for your situation.

Need help keeping to the budget for your new commercial truck purchase, too? It starts with affordable, flexible financing through Mission Financial Services. We offer a range of truck loans that cover purchasing new or used trucks as well as paying for repairs.

Resting place the truck stop on various types of trucks in a parking lot off the highway with gas station for refueling car on the USA

6 Important US Trucking Industry Statistics

The US trucking industry serves as the backbone of American commerce, moving billions of tons of freight annually across the nation. For small trucking businesses and owner-operators, understanding key US trucking industry statistics helps inform business decisions and navigate market challenges effectively.

By leveraging US trucking industry data for strategic planning and making informed decisions about equipment, personnel, and operations, small trucking businesses can position themselves for success.

We’ve compiled 6 essential US trucking industry statistics that paint a comprehensive picture of today’s trucking landscape. These numbers reveal opportunities, challenges, and trends that directly impact small trucking businesses in the US.

6 US Trucking Industry Statistics

The US trucking market is a major player in the global trucking market. But it is subject to factors unique to the US, such as American demographics, regulations, trade policies, and tariffs. Let’s dive in and discover the most important US trucking industry statistics.

1. Freight Volume and Trucking Revenues Statistics and Projections

The American Trucking Associations (ATA) is a great source of US trucking industry statistics. It reports that trucks transported 11.18 billion tons of freight in 2023, representing a decline from the previous year’s 11.46 billion tons.
The ATA Freight Transportation Forecast to 2035 indicates that total truck tonnage will rise from an estimated 11.27 billion tons in 2024 to 13.99 billion tons in 2035.
Long-term projections indicate trucking industry revenues will grow from an estimated $906 billion to $1.46 trillion. This will represent 76.8% of the freight market by the end of the forecast period.

It’s a fact that freight volume has experienced a decline. However, it’s difficult to get a clear picture from recent numbers, due to manufacturers overstocking ahead of proposed tariff changes and then destocking those pre-tariff inventory buildups.

As the economic uncertainty subsides and businesses embrace the new norms, freight volume will likely recover. So, is the trucking industry growing or slowing? There are still opportunities for trucking businesses, but they must be willing to adapt to changing market demands.

The freight volume decrease is not due to fewer trucks or even a shortage of tractor-trailer truck drivers, although the latter does play its part. (We’ll get to that later). The decline in freight volume reflects broader economic conditions. However, tonnage still demonstrates the trucking industry’s massive scale and importance to the US economy.

The revenue increase projections show that while freight volumes may fluctuate, the industry’s financial position remains strong. The trucking sector has a dominant position in logistics, playing a critical role in supply chain operations and its influence on overall transportation economics.

2. Employment and Workforce

In 2021, American Trucking Associations’ Chief Economist Bob Costello said the truck driver shortage had risen to 80,000.
Industry experts fear that the shortage could surpass 160,000 by 2030.
According to the US Bureau of Labor Statistics, about 240,300 openings for heavy and tractor-trailer truck drivers are projected each year, on average, from 2023 to 2033.
The average truck driver’s age is 47 years. This aging demographic contributes to the driver shortage as older drivers retire without sufficient younger replacements entering the field.
According to US trucking market statistics, only 9% of truck drivers are below age 25, and only 8% are women.

The truck driver shortage presents recruitment challenges for fleet operators, although the demand for truck drivers is not equal across the states. This long-term challenge will likely drive continued wage increases and operational changes throughout the industry. According to Zippia, truck drivers are most in demand in Atlanta, GA.

However, it creates opportunities for existing truck drivers to command higher wages and benefits. It is also clear from the statistics that the industry is struggling to attract younger workers and women. These demographic imbalances threaten workforce sustainability and diversity and emphasize the need for targeted recruitment.

3. Safety

According to NHTSA’s final 2023 traffic crash data, fatalities in crashes involving large trucks decreased by 8.3% compared to 2022, with 497 fewer fatalities, demonstrating ongoing improvements in commercial trucking safety.

There’s a need for truck safety in the US. There are two ways to achieve this and make statistics like these a thing of the past. One is with advanced truck driver training. And another is with tech.
Advanced safety technologies, including dash cameras, driver monitoring systems, collision avoidance, and lane departure warnings, are becoming standard equipment. These technologies help reduce accident rates and improve overall fleet safety performance.

Electronic Logging Devices (ELDs) have become mandatory for most commercial trucking operations, ensuring hours-of-service compliance. This technology helps prevent driver fatigue while maintaining accurate records for regulatory purposes.

4. Trucking Industry Operational Costs

The American Transportation Research Institute reports that average operating expenditures decreased by 0.4% to $2.26 per mile in 2024, though non-fuel operating costs rose 3.6% to a record high of $1.779 per mile. This figure includes all operational expenses, providing a benchmark for fleet cost management.

High operational costs are often fuel-related, but we have found that fuel is not always the main cost driver in trucking. Rising costs for commercial truck insurance, maintenance, equipment, and driver compensation all contribute to higher operational costs.

5. Technological Advancements

The electric truck industry is projected to reach $40 billion by 2035. This growth represents a significant shift toward sustainable transportation solutions.
This shift represents both opportunities and challenges for traditional trucking operations. But it’s something many businesses are willing to consider, as electric vehicles are typically eligible for tax credits.

6. Cross-Border Trade

Cross-border trucking is still a lucrative business model. According to the US Bureau of Transportation Statistics, America’s land borders with Canada and Mexico see nearly $3.5 billion in daily cross-border freight shipments.

This international freight movement provides significant opportunities for qualified carriers. Just be aware that to operate across borders, your trucks will need apportioned license plates, issued under the International Registration Plan (IRP).

Find out more about the requirements for both intrastate and interstate semi-truck registration and licensing: Commercial Truck Registration & License Plates Costs.

Trucking Market Dynamics and Trends

How do these US trucking industry statistics tie in with other trucking market dynamics and emerging trends?

Freight Conditions Remain Challenging

Load-to-truck ratios and freight conditions remain subdued, with continued softness across industrial and retail sectors. These conditions create competitive pressures while highlighting the importance of operational efficiency. However, in time, the freight shipping industry is sure to find its equilibrium.

E-commerce Growth Drives Demand

E-commerce is estimated to reach $36 trillion by 2026. So, what does this have to do with trucking? This explosive growth has led to one of the most promising US trucking industry trends. It creates new opportunities for trucking companies serving last-mile delivery and distribution networks.

Private Fleets Capture Larger Market Share

Private fleets continue to capture a larger share of freight volume, affecting traditional for-hire carriers. This trend reflects shippers’ desire for greater control over their supply chains and transportation costs.

Fleet Technology Adoption

Fleets are increasingly adopting advanced technologies for route optimization, fleet management, and driver communication. These tools help improve efficiency, reduce costs, and enhance customer service capabilities.

Trucking Industry Outlook and Projections

Looking at these US trucking industry statistics, what does the future of trucking hold for small trucking businesses? This is our trucking industry forecast based on current economic and technical developments and industry expertise.

Freight Market Recovery Expected

Industry experts project freight market recovery in 2025, with improved demand and stabilizing rates. This recovery will likely benefit well-positioned carriers who have maintained operations through challenging periods. Keep an eye on US transportation industry statistics and key economic indicators that will signal the pace of this recovery, particularly freight demand patterns and capacity utilization rates.

Technology Investment Increases

Fleet operators are increasing investments in technology solutions to improve efficiency, safety, and profitability. These investments include telematics and route optimization software, which complement advanced and defensive driver training programs.

Autonomous Vehicle Development

Self-driving semis might be the future of trucking. While fully autonomous trucks remain in development, driver-assistance technologies are becoming more sophisticated. These systems help reduce driver fatigue, improve safety, and optimize fuel efficiency.

Strategic Implications for Small Trucking Businesses

After years of working closely with truckers and trucking companies, we’ve gained valuable industry insights. When combined with these US trucking industry statistics, it identifies the best strategies moving forward for small trucking businesses.

Market Positioning Opportunities

The driver shortage and growing freight demand create opportunities for small trucking businesses to expand operations and increase market share. Trucking companies that can attract and retain qualified CDL drivers will benefit from these market conditions.

Technology Adoption Benefits

Small fleet operators who invest in appropriate technologies can compete more effectively with larger carriers. Route optimization, fleet management systems, and safety technologies provide competitive advantages.

Financial Planning Considerations

Rising operating costs require careful financial planning and cost management. Understanding US trucking industry statistics and industry benchmarks helps small operators identify areas for improvement and optimize profitability.

US Trucking Industry FAQ

How Many Truck Drivers Are in the US?

The trucking industry employs 3.55 million drivers nationwide, representing a significant portion of the American workforce. This number includes both company drivers and owner-operators across various trucking segments, from light-duty to heavy trucks.

For more information on this topic: How Many Semi-Truck Drivers in the US?

How Much Do Truck Drivers Earn in the US?

The average base salary for a driver in the US is $4,624 per month. However, the figure can be much higher for an owner-operator trucker. External factors, such as driving experience, can also influence truck driver wages.

If you’d like to know more: How Much Do Commercial Truck Drivers Make?

How Important is Sustainability for My Trucking Business?

It’s very important! In fact, trucking-related sustainability initiatives are growing. Environmental concerns are driving increased focus on sustainability, including alternative fuels, route optimization, and equipment upgrades. These programs help reduce operating costs while meeting environmental requirements.

Conclusion

These US trucking industry statistics reveal a sector in transition.

While challenges like driver shortages and rising costs persist, opportunities abound for well-positioned businesses. Our US trucking market analysis shows that the projected growth in freight tonnage, revenue increases, and technological advancements create a favorable environment for strategic expansion.

That means it’s more important than ever to be smart about your finances. Need help with financing your growth plans while managing cash flow challenges? Mission Financial Services provides tailored solutions designed specifically for the trucking industry’s unique needs.