How to Buy a Box Truck

Introduction

• Presenter: Kobe from K King Trucking.
• Experience: 4 years in the trucking business, purchased 4 box trucks.
• Goal: Provide a detailed guide on buying a box truck, covering renting, purchasing cash, financing, and buying used trucks.

Buying a Used Box Truck

• Inspection:
  • Always have a mechanic inspect the truck.
  • Check brakes, tires, for leaks (oil and air), and overall condition.
  • Mechanics perform a 9-point inspection.
• Maintenance:
  • Regular maintenance is crucial (oil changes, tire replacements).
  • Daily inspections by the driver/owner (tire condition, air leaks, engine checks).
  • Maintenance costs are higher but necessary.
• Warranty:
  • Recommended for engine, AC, transmission.
• Mileage Consideration:
  • Lower mileage preferred (ideal range: 100,000-200,000 miles).
  • Check the maintenance history thoroughly.
  • Used trucks are more economically viable despite faster maintenance needs.
• Cost:
  • Price range for a good used truck: $30,000-$50,000.

Buying a New Box Truck

• Pros and Cons:
  • Less maintenance initially, higher upfront cost ($90,000-$120,000).
  • Peace of mind with fewer early maintenance issues.
• Recommendations:
  • Freightliner M2 106 is preferred due to widespread mechanical knowledge and part availability.
  • Other good brands: Mack (good with wide cargo space).
• Required Features:
  • 26ft box truck with liftgate is essential for non-CDL operations.
  • Ensure the truck has at least two to three e-tracks for load security.

Financing a Box Truck

• Process:
  • Find a lender, complete application (based on credit and available down payment).
  • Consider the loan term (shorter terms preferred, 36-48 months).
• Financial Preparation:
  • Have additional funds for initial expenses such as insurance, maintenance, sales tax.
  • Aim to have $10,000 extra in the bank.
• Credit and Business History:
  • Better credit scores and longer business history can result in better loan terms.

Renting a Box Truck

• Advantages:
  • Cheapest way to start, helps learn and gain initial experience.
• Disadvantages:
  • Can be expensive ($500-$1,200 per week, additional mileage charges).
  • Stressful due to high weekly costs and insurance.
• Negotiation Tips:
  • Negotiate for better rates and establish a company account with rental agencies.

Conclusion

• Emphasizes the importance of reducing overhead costs.
• Encourages asking questions and staying informed.
• Provides resources: 17-step blueprint and social media presence for further guidance.