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.
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.
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.
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
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.