what's good everybody it's Kobe from K King Trucking what you're about to see is the breakdown for how to buy a box truck and for those that don't know me I've been in a business going on four years in December purchased four box trucks I actually just bought another one today so we're about to go pick that up next week I'm going to give you all the details on what you need to know as far as renting buying purchasing cash financing everything you need to know buying a used box truck obviously you're getting equipment that someone else has already used it's going to have mileage on the truck it's is going to have things that are potentially going out at some point so buying a used truck you definitely want to have a mechanic look at the truck go over the truck the brakes look for leaks look for air leaks look for obviously the tires make sure the tires are in good shape make sure there's nothing leaking as far as like the oil and everything along those lines mechanics usually do a step-by-step inspection they have like ninepoint inspection they have to to check off as far as if the truck is in good shape starting in the trucking industry nothing's ever going to be perfect you can buy a brand new truck and potentially have issues starting out so if you buy a used box truck you can definitely get a warranty you want to get a warranty on like I said the engine AC transmission things along those lines these trucks are they're not you know perfect they they're going to have flaws they going to have certain issues that you have to address biggest thing is just having some funds to be able to address those issues but also maintenance is just something that's required in this business you're going to have to learn how to do maintenance you're going to have to have a good mechanic for the trucks not I'm not saying this to make you feel like you're just going to be doing maintenance at all times I just like to preach maintenance because you're not on top of your maintenance when you get out on the road and you're going OTR if your truck breaks down because you're not ahead and you're not you know paying attention to the maintenance that's where it can get worse so you're going to have to do monthly things like oil changes and you want to make sure that you as the driver or the owner are and if you have a driver are checking for your daily morning inspection of the truck so you want to look at things like if your tires are balding in any way you want to listen for air leaks you know you want to check underneath the engine if see if you have any leaks as far as that goes be checking these things daily but I definitely recommend buying a used box truck because as long as it's in good shape as long as you can get mileage and you can get some money out of it to start of course like I said the maintenance will come faster than a brand new truck however still going to get your money out of it regardless my first truck I actually bought it at 304,000 Mi which looking back I wouldn't have bought a truck with that many high miles but it was a good truck I still have it till today bought it at 304,000 Mi it has about 670 670,000 Mi now which is pretty much unheard of I've never done an engine rebuild I've only worked on things like the DPF tires fixing different different hoses things of that nature things that are just pretty much standard once you understand the idea of Maintenance and you understand that it's something that's going to need to be done consistently but you got to understand you're also making money daily the trucks are just their own entity you know their own you know person in a sense so they're going to need just to be loved on so they're going to need their consistent oil changes at 10,000 miles you know they're going to need to replace tires you know sometime within the year and as long as you're on top of these things the truck is going to last you as long as you're treating it right the best place to buy the best used trucks you have to do some research you have to check different things as far as how many miles the trucks has you want to check the maintenance history so if you're contacting a Pinsky or Rider Enterprise or budget whoever the case that sells trucks you want to have a maintenance history log of that truck so you want to see what's been done what's been replaced what hasn't been replaced has the DPF been clean has the transmission been replaced of course if they had engine rebuild have they been doing their oil changes on time so these are things that you want to know you want to be an understanding of it the least amount of miles is the better so if you can find a truck with 100 to 200,000 Mi pretty much getting a newer truck you don't need a truck necessarily that's 50,000 MI you can get one 170 180 200,000 mi in this market be a really good truck to work with like I said you want to have a mechanic look at this truck make sure that the truck can pass that 9-point inspection often times they give you about a week or maybe 1,000 miles or maybe 3,000 mies to have the truck after you purchase it to be able to return it if you need to I recommend having your mechanic look at it the first day you get it second day you get it not really doing any miles right away I would I would look at that first one thing also recommend is just oil changing the truck after you first get it just to make sure the oil is clean and fresh a good price range to buy a used truck today is anywhere from 30 to 50,000 a sweet spot is kind of the 40,000 Mark you want to get a truck that's about 200,000 Mi or less if possible make sure the miles are good as far as the price goes but you can get a good truck at $35,000 at this point maybe even 30,000 but just make sure like I said that you're making sure the truck is in good shape and has a good maintenance history before you purchase it buying a new box truck can be the safe way to start in this business if you don't know the most amount of information as far as maintenance and having a mechanic and things of that nature that you will as you learn buying a new box truck can be something that works very well for anyone new box trucks can range from 90 to 120,000 depending on what brand you get also with that purchase you're going to have a pece of Mind as far as what maintenance goes having years in the business with maintenance uh without having to put a lot of money in maintenance so buy a new box truck can be very beneficial for anyone you're just going to need some more Capital up front I don't necessarily recommend buying a new box truck but it's something that can work for someone especially if they don't want to be spending money in maintenance now if you buy a new box truck make sure you get a warranty for that new box truck especially when you're starting off the truck shouldn't have any big maintenance issues so you want to buy a warranty to make sure that things like the engine are cover the AC the transmission you're just going to need a lot more Capital up front potentially 50 K just to be able to get that new box truck but if you have the funds and you can buy it from day one obviously it's a very smart thing to do if I was to buy a new box truck I would get a Freightliner m2106 these are the same trucks that I purchased so if you're getting a new one you get them from Pinsky dealership or Rider dealership velocity Truck Center dealership there's only certain places that make brand new ones another really great brand is a Mac Macs are one of the newer box trucks that are in the market Mac is in business with Volvo and Volvo's mechanics are really good and are a lot of parts for Volvo trucks and the dimensions are great on Mac trucks as well the width on the inside of the Box are wider than basically all box truck so when you're loading Freight the dimensions as far as fitting the pallet side by side or anything that's very large and wide that are going to fit a lot better in a Mac Truck I personally love freight liners reason I love freight liners every mechanic knows how to work on a freight liner so you can't go wrong with that basically anywhere you go in this country you'll be able to find freight liner Parts whereas if you buy International or or Hino or you know even potentially a Mac you know you might not be able to find those parts just anywhere there's never going to be Parts on back order necessarily for Freightliner especially in today's market freight liners are also just very easy to drive the dash is very simple not too much going on so and you know you hire a driver they're going to be very comfortable in that freight liner as well so freight liner M2 106 is definitely the truck I would look for when you're get in this business you want to definitely get a 26t box truck with a liftgate you can buy a a box truck without a liftgate but you would have to have one put on liftgates are super important as far as being able to have the ability to unload without a dock so if you're loading in a residential area just anywhere that that doesn't have a dock available you're going to need a liftgate I definitely need a liftgate for everything I do as far as my business goes so I would definitely recommend that but a 26t truck it's the basically it's the biggest truck for non CDL that you can get there are smaller box strikes that you can purchase 24 ft 20 ft 22 fet potentially 26 and 24 are the most common trucks I have one 24t truck actually and the dimensions aren't that different you can potentially fit maybe one to two more pallets in a 26 than you can a 24ot truck one thing you want to look for are e trcks inside the truck you want to get a truck that has at least two R TRS three if possible these are to secure loads so you need straps to strap the loads in one R TR just won't do what it needs to do so you need two to three R TRS me personally I have never purchased the new truck new trucks are obviously a great thing to do you don't have as much maintenance when you begin in a business and that is something that can keep people from succeeding and scaling early on because if you purchase the wrong truck with a truck that needs a lot of Maintenance it can definitely hinder you as far as trying to progress in this business but payments are going to be a lot higher the insurance could be lower because the the truck is newer but however it's just a lot of money to invest in plus the warranty I do recommend buying a used truck obviously finding a good good truck having a mechanic look at that truck but the reason I haven't bought a a brand new truck is because they're just too expensive especially when you're starting out one would say if you're going to spend $1 $120,000 on a box truck you may as well get a semi which is a different form of a truck if I was going to start my trucking company today the first thing I would do is finance you want to finance a truck just like you would finance a car first you need to find a truck and who you want to go through as far as who going to purchase that truck through the things that are going to happen is say Pinsky for example is going to find you a lender that they work with they're going to have you complete an application it's going to be based on your credit and then it's going to be based on how much money you can put down now in today's market trucking companies are looking to sell as much as they can because people aren't buying trucks as they were 2 to 3 years ago this is going to be an advantage for you because they're looking to sell a truck they're looking to get people in trucks any way they possibly can the barrier is going to be a lot easier than it was 2 three years ago when trucks were 60 70 80 $90,000 financing a truck is something and that's exciting you do need to have some money in the bank they're going to look for ending balance of a certain amount potentially 10,000 but that's what it was when I last purchase a truck it's going to be the same process if you're going to buy him cash you definitely want to buy a good truck you want to look at the interest on the loan that you're going to potentially get it's 10 15% you know that's something that you have to factor in as far as if you want to buy that truck if you want to take that loan something else you also want to think about if you're able to bring a lender to the table so if I have Navy Federal for example example or I can get a loan through Capital One that'd be something that I could bring to the trucking company and say hey I have a loan for 50k or 40K I'd like to purchase a truck when financing your truck you also want to look at the years that your loan is going to bring 36 months 48 months 60 months you have to think about how long you want to pay on that loan for now my personal opinion I want to take a loan that's as short as I can if it's 36 that makes the most sense or 48 3 or 4 years even 24 if the terms are practical for you and it only depends on you so when you're purchasing you know you have to think about how much you want to work how much and how hard you're going to go to get this truck paid off cuz in this business overhead is everything now the higher the overhead you have you know the more bills you have the the less profit you're going to have and then how much money you want to put down if a lender wants you to put down let's just say $10,000 I would recommend that you have at least 15 to 20,000 in your bank so that you can get started with that truck you can get on the road you can have some money for fuel you can make sure the mechanic can look at it you can pay them for that you have to make sure you have money for your sales tax for the truck so I would look to have extra 10,000 in the bank to get started I think that'd be amazing 5,000 if at least if you can get it done but yeah that's definitely something you want to look at cuz they do want money up front more than likely it's also going to be based on your credit so the better credit you have the better terms you may get last thing that lenders are going to look at is how many years in business that you are so if you have your LLC open for one the two to three to four years that's all going to make a difference and something that they really look for is two years in business so if you have two years in business with your LLC and you have you know some money in your in your business bank account that can be shown as far as your endent balance that looks really good these are things that are important so if you're getting started you know if if you're you just opened your LLC um the terms may not be as favorable as someone that you know had two years in business but we all have to start somewhere it's just like buying a a car if you don't have any you know credit history so we all have to start somewhere but I want everyone to understand that this is a business you may have 10% or 15% interest it's a business you're making money with this truck daily especially if you're driving it which I would encourage so I would try to stay anywhere from obviously zero interest to 15 but remember you know you're making money on this truck you're making money with the truck even if you're not driving it someone else is driving it you're making money I wouldn't take interest as seriously when it comes to financing in addition to financing understand that if you are late on your payments with the lending company of course make sure you reach out you speak to your representative let you know let them know that you're going to be late so they're not looking for their money but also try not to be late that's something I can definitely recommend because they're going to put late payments on your loan and those late payments are very expensive although you ended up getting it paid you're still going to have that late payment so it's going to be tacking on to your loan so I had a little trouble with that in my first year thinking that it was okay but looking into it further like I said they started adding late payments so I had to fight a little harder to get ahead so the best thing is to do is to make those payments on time that's also going to help your business credit um and these are things that you want to think about when you are financing so that you can keep things clean you can keep your business credit in good order but also you're not paying on your loan we longer than you need to because you know youve just been paying late so make that a priority just like if you had a rental truck you want to make those payments a priority for the people that are able to purchase a box Tru cash you are going to be ahead of the game from day one like I mentioned previously overhead is the number one thing that you want to lessen when you're starting a business starting a trucking company because of all the other variables that come into play not having a payment for that truck is going to be a lifesaver is going to be something that is a weight off your shoulders person your truck cash is just going to be very helpful very essential as far as progressing earlier in the business in trucking we have insurance to pay we have a truck note we have maintenance we have a driver we have just a bunch of things that can really bring our profit margins down lowering one of the bigger payments of a payment that could be 1,000 2,000 3,000 you know with people potentially with bad credit you know this is something that can also just help Propel you to having more cash flow having better profit margins as you go earlier in the business and that's something that I recommend everyone knows that getting loads before your first 90 days is a hassle it's a little tougher it's a little bit of a struggle you want to be able to come into the business with a lower overhead so that at least you just have maybe you know your insurance payment and you can just keep working and like with the weight off your shoulders a little less stressful so my first truck payment was $1,200 my second one was $1,800 and those are the only two trucks that I financed and I thought the 1,800 was going to be tough at the time when I got the truck but it it really wasn't but at the end of the day if I didn't have that $1,800 payment you know it's basically $2,000 a month so 2,000 time 12 that's 24 Grand a year you got to think about it in in those terms that's 24 grand for the year that you can be keeping in your pocket that's you know going to toward your profitability for the business but just for the people that have the funds or are able to access funds or maybe have someone that wants to invest in them purchasing a truck cash is the way to go especially getting started so that you have more room to really hit your head really stumble just early on but it'll be a little bit easier cuz you don't have as many payments so if you're able to purchase a truck cash please do so renting trucks now renting trucks is something that's been talked about at nauseum renting trucks when you're starting in this business it's the cheapest way to get started so to get started necessarily you would need about $5,000 to rent that'll cover your insurance down payment that'll cover your first week in the rental truck that'll cover $11,000 as far as fuel goes to get a couple lows dropped additionally it'll cover anything if you need straps or blankets or P jacks or anything like that so that'll get you started however renting can be good and bad renting is good because like I said it helps you get started you can learn you know you can get some loads done you can get your MC starting the season it can be something that if you do do it the right way as far as your finances you can try and scale with multiple rental trucks if you're good with your finances while you're renting a truck you'll be amazing with your finances when purchasing a truck cash or financing the downsides of renting trucks are they're expensive so truthfully they can cost you anywhere from 500 to about 1,200 a week and then rental companies also charge you cents per mile as far as you drive so if you're driving 1,000 miles it could charge you anywhere from 15 to 30 cents potentially based on the rental company so being charged per cents per mile can be tough because if you're going OTR you're doing three four 5,000 miles a week that's something that you're getting charged so that's on top of the weekly rate which is like I said between 500 and 12 to, 1300 and then also you do have to pay insurance when you have a rental truck the rental truck company can provide insurance usually $60 a day which is obviously a good amount of money so 7 Days That's $420 per week $420 per week for weeks $1,600 and some change basically in all reality that's actually cheaper potentially than you know say a progressive could charge based on things like your age and driving history and things of that nature so $1,600 for for insurance is not bad but when you're getting into $500 to $1,200 a week and your uh weekly payment that's a lot of money you can ask a rental company for a monthly rate so that monthly rate can range anywhere from $2,500 to $33,000 and then that's not including the cents per mile that you still have to pay it's not including Insurance the numbers add up significantly and if you're not doing enough work if you're not delivering enough loads if your loads aren't paying well enough or if you're not going far enough as far as just to make more money gross it's going to be hard to make the payments now you never want to get in a situation where you didn't make enough money for the week so you're at negative and that's not a great place to be renting trucks can also provide a lot of stress so like I said with the weekly payment you have a certain number that you have to make if you can't find any good loads if if these loads are below your cost per mile which I'll talk about at a different point then you might not make your weekly payment it's very easy to make the weekly payment but you're going to feel stressed to make sure you're delivering enough and you're completing enough jobs to be able to make these payments so you never want to be in a situation where you're taking work that's not profitable just so you can make a weekly payment because that's how you work backwards so if my cost per mile is $150 but I am taking work that's a dollar a mile1 20 a mile just because the quick money going to help me make my weekly payment I'm actually not getting anywhere now that's a Learning lesson in itself but it's not going to help you in a long run so you want to know these things you want to be comfortable with these things to start and you want to get good weekly rate and a good sense per mile from the rental company so a big thing is going to be negotiating you want to go into the rental company to their doors you want to talk to a specific agent you want to be able to try to put together a contract you want to make a company account with that company and with Enterprise or a writer or a budget or a Pinsky and you want to be able to negotiate so you want to get the best rate best deal that you can renting is definitely something that can lead you in a good direction if you're doing it right it can also Lead You In a very bad Direction because make it be something that's very stressful yo I appreciate all you guys for watching make sure you keep checking out the 17 step blueprint it's going to be in the bio of all my videos as well as keep following my Instagram at K King Trucking I post all my content there my daily loads situations I have with drivers or anything that happens on a day-to-day basis um and I just bought a new box trucks I'm be posting new content on that coming up soon my goal is to be as transparent as I can put as much information out there in the universe as I can for all you guys that are getting into the space or already in the space and you know still have questions on certain things just like we all do from time to time so make sure you keep checking everything out and if there's anything that you guys are curious about comment on any of my videos for something that you want to know I'll make sure I get into the coms comments and answer your questions and I again I appreciate you guys checking out and vibing with me