In today’s economy, start up and seasoned businesses have an unique opportunity to acquire an attractive deal for any type of Garbage truck with the possibility of special financing. The first option, for the buyer, is to visit their local dealer and find his truck there. This is great place to start and obtain pertinent information that will be used later in the data gathering process. From there, it is recommended searching the internet and its mass volume of data that is available. The potential buyer can visit such sites as truck paper and truck trader etc to view thousands of listings of trucks available across the United States. He is able to sort and sift through this vast data and should be able to find a truck, in any city and/or state across the U.S, that meets his acquistion requirements. Once he has located a source of trucks available to him, he is able to contact these sellers and negotiate a deal that might be able to meet his needs. Once he is agreed to a price and its particulars, his next hurdle is to find adequate financing in today’s complex lending world of this commodity.
The type of Garbage trucks we are identifying for this article is the following:
Front End Loaders, Side Loaders, Refuse Trucks, Rear Loaders, Hooklifts, Recyclers, Containers, Truck Bodies, Containers, Compactors, Trash Truckers, Waste Collection Vehicle.
Some manufactures for the garbage trucks include Peterbilt truck, Kenworth truck, Volvo truck, Mack truck, Freightliner truck, McNeilus and so forth.
Today, the financing arena for Garbage trucks has become much smaller, especially for over the road trucks.. Lenders, in the past, that use to finance this niche market have either pulled their portfolio funds out of this area or have modified its lending requirements. It is not unheard of today that a start up business must commit to a down payment of between 10% - 30% of the acquistion cost of the Garbage truck to enter this market. The seasoned business with good credit might be able to get in as little as one payment down plus documents fees but must have either A or B Credit. Other seasoned businesses that don’t meet these credit requirements, may be required to put up 10-20% down or either put up additional collateral as their credit scores fall below 600. Most buyers don’t enjoy these tightening financial requirements, are locked out of this market, and will start looking for alternatives that are available due to market conditions. In addition to the market requirements of substantial monies due upfront, the conventional lender has modified his risk/reward factor for the failure and possible repossession of these trucks. Therefore, the rate and/or interest factor that the lender charges has gone up making it a bigger challenge to complete the financing end once the want to be buyer locates his acquisition.
As the economy has weakened due to market conditions, including diesel gas reaching $5.00 or more per gallon in the past in certain states, the route of conventional financing has changed as we know it. The lender has acquired another problem that makes their equation a little more complicated. In the past year as the price of food has gone up, the real estate markets have taken a toll for the worse and other world factors have caused the banks to be more unstable, the trucking industry has become more volatile. As the increase of defaults on the payments of Mack and all other trucks have risen to all time highs, the lenders have been taking back these trucks by the droves that are earmarked as repossessions. This has caused a problem with normal lending practices and trying to balance it with a non producing income portfolio. If these lenders don’t act swiftly and prudently, the combination of these two type of portfolios can be devasating to the lenders’ bottom line. A third factor to consider is the off lease truck. These trucks are being returned to the lender and they must act accordingly with this third factor.
By definition, a Garbage off lease Truck has been returned to the lender as the lease has expired. The lessee has made a decision to return the item in lieu of exercising the buyout option. A repossession is different than an off lease because it has arisen due to a default of the lessee for non payment terms or a violation of the terms of the lease. Either way, the lender has taken these trucks back and/and now must recondition these trucks and either sell these trucks or re-lease them.
The lender can either advertise their off lease and repo inventories through their internal sales force, trade journals such as truck paper, truck trader etc or utilize outside professionals such as brokers to move their inventories as quick as possible. Sometimes, as these inventories either sit or whatever reasons aren’t moving, the lender will put these items up for auction. At the present time, the lenders have two different types of financing portfolios to consider and must act accordingly. Normal lending on new business deals still require stringent lending practices based upon the credit markets and the risk/reward factors lenders perceive out there in the financial markets. The second type of portfolio, for the off lease and repos, require possibility a more lenient approach to liquidating their inventories prudently and recreating the income stream for the lenders. This will be discussed below.
Tags: freightliner truck, Garbage Truck, kenworth truck, peterbilt truck, truck, Volvo trucks
In today’s unstable economy, the start up and seasoned business has an unique opportunity to acquire an attractive deal for off leases and repos for commercial trucks and construction equipment. Due to a contracting economy, many lenders have excess inventories on their books that they need to put them back on the street. These in-house inventories are non income producing, therefore this puts pressure on the lender to make a deal with the consumer. These deals can be found in the price, the financing or a combination of both. An off lease commercial vehicle and/or construction equipment has been returned to the lender as the lease has expired. The lessee has made a decision to return the item in lieu of exercising the buyout option. A repo has arisen due to a default of the lessee for non payment terms or a violation of the terms of the lease. Either way, the lender has taken these trucks and/or equipment back and now must recondition the items and either sell these items or re-lease them. The lender will either advertise their inventory through their internal sales force or outside professionals such as brokers to move their inventories as quick as possible. Sometimes as these inventories either sit or whatever reason isn’t moving, the lender may put these items up for auction.
For this article, the type of items we are going to identify as potential deals for the customer is the following:
Dump trucks, flatbed trucks, grapple and landscape trucks, fuel and lube trucks, bucket and boom trucks, over the road and day cabs, water trucks, tow trucks, box vans and straight trucks, dry van Trailer and reefer trailers, end and bottom dump trailers, flatbed trailers, backhoes, bulldozers, crawler tractors, forestry equipment, excavators, Forklifts Equipment, and other type loaders.
A list ot Builders may include Peterbilt, Kenworth, Mack, International, Freightliner, Ford, Volvo, Western Star, John Deere, Case, Caterpillar, Kobelco, Great Dane Trailer, Miller, East, Warren, Dragon, Clement, etc.
Some of the ways the startup and/or seasoned business can locate these deals are through trade publications, surfing internet search engines, contacting lease brokers for information and speaking to lenders directly. Some of the lenders in the market have advertised personal credit qualifications as low as 575, prior bankruptcy rules amended or ignored and start ups are welcome. Additionally, the front money to commence the lease can start as low as first payment to whatever you might able to negotiate. Some of the lenders have application only programs up to $250,000. There are no financial statements, income tax returns or bank statements required. In conclusion, this is a buyers market for commercial trucks, trailers, and construction equipment.
Check out all the deals in the market and make sure that you have a stable income base to assume whatever debt that you may occur. Make sure you understand the buyout clauses which may be $1.00, 10%, 20% fair market value or whatever the lease stipulates.
Tags: case, Caterpillar, dry van trailer, Dump Truck, Ford Trucks, great dane trailer, john deere, kenworth truck, Peterbilt, Volvo trucks
Kenworth Truck Company will expand its presence in the growing market for environmentally friendly, liquefied natural gas (LNG) vehicles by beginning production of Kenworth T800 LNG trucks at its manufacturing facility in Renton, Wash., in 2009. Under an exclusive agreement with Westport Innovations Inc. in Vancouver, B.C., Kenworth will use Westport’s LNG fuel system technology adapted for the Cummins ISX 15-liter engine.
“The Kenworth T800, equipped with a Cummins ISX and Westport’s HPDI fuel system, offers an industry-leading solution with world-class low emissions and greenhouse gases, while delivering outstanding horsepower, torque, and efficiency comparable to a diesel engine,” said Bob Christensen, Kenworth general manager and PACCAR vice president. “Kenworth is recognized as a technology leader in the commercial vehicle market and the exclusive ability to offer this technology reinforces Kenworth’s reputation as The World’s Best.”
“This agreement with Kenworth creates a dramatic increase in LNG truck delivery capacity and further strengthens Westport’s ability to efficiently meet the significant growth in market demand for environmentally clean LNG trucks from the ports and other fleet customers,” said Michael Gallagher, president and chief operating officer of Westport Innovations.
The Kenworth LNG factory installation coincides with the Ports of Los Angeles and Long Beach announcement to approve a new $1.6 billion Clean Truck Superfund. The fund will assist replacing many of the 16,800 Class 8 trucks serving the ports with LNG-powered vehicles. The ports have also introduced a new progressive ban that will remove all pre-2007 trucks by 2012. Westport’s LNG fuel system is the only alternative fuel technology currently qualified for financial support under the ports’ Clean Truck program.
Kenworth and Westport Innovations have previously collaborated on an aftermarket basis to equip Kenworth T800s with LNG fuel systems. These trucks are already serving the Ports of Los Angeles and Long Beach. In addition, Pacific Gas & Electric Company in San Francisco recently became the first utility in the nation to operate Kenworth T800 LNG-powered trucks.
Westport will open a new LNG Fuel System Assembly Center in British Columbia to support the Kenworth factory initiative and to rapidly increase production capacities of LNG fuel systems to meet growing market demand. The Westport Assembly Center will facilitate significant capability for fuel system assembly and engine conversions for delivery direct to the Kenworth plant.
About the Kenworth T800 LNG Truck Specification
The Kenworth T800 is one of the most versatile trucks on the market today. The T800 serves a variety of applications from linehaul tractors with the luxurious 86-inch Studio AeroCab® sleeper to severe service off-highway dump trucks and urban pickup and delivery vehicles. This operational versatility, coupled with its legendary reliability and high resale value, gives the T800 unmatched levels of customer satisfaction. The Westport engine is fueled with LNG - a safe, cost effective, low carbon, and low emissions fuel. The Westport LNG system is available with 400 and 450 horsepower ratings and up to 1,750 lb-ft torque for heavy duty port, freight, and vocational applications. LNG fuel tanks can be configured to suit customer range requirements. Trucks are eligible for federal tax credits in the United States and may be eligible for other state-specific emissions credits.
About Westport’s LNG System for Heavy Duty Trucks
Westport’s LNG system for heavy duty Class 8 trucks offers class-leading emissions, including lower greenhouse gas emissions than comparable diesel engines, and allows trucking fleets to move to lower-cost, domestically available natural gas and/or biogas. The Westport LNG system comprises LNG fuel tanks, proprietary Westport fuel injectors, cryogenic fuel pumps and associated electronic components to facilitate robust performance and reliable operation. The Westport LNG system is 2007 EPA and CARB certified to 0.8g/bhp-hr NOx and 0.01g/bhp-hr PM. Kenworth, Southern California dealer Inland Kenworth, Westport and Clean Energy Fuels received the prestigious Alternative Fuel Vehicle Institute’s 2007 Industry Innovation Award for this truck product.
Tags: kenworth truck
Kenworth Truck Company’s environmental-friendly and “green” commitment to producing aerodynamic, fuel-efficient trucks has helped reduce emissions, fuel usage and customer operating costs since it introduced the industry’s first truly aerodynamic truck, the T600A, in 1985. Building on this aerodynamic heritage, Kenworth’s latest models? the new T660 and T2000? were recently acknowledged as SmartWay eligible trucks by the U.S. Environmental Protection Agency (EPA). The SmartWay Transport Partnership is a collaborative voluntary program between the EPA and the freight industry. SmartWay eligible tractors offer a full aerodynamic package, including integrated roof fairings, fuel tank side fairings, tractor-mounted gap reducers, aerodynamic bumpers and aerodynamic mirrors, idle reduction technology readiness, and low rolling resistance tires. “SmartWay partners improve their energy efficiency, save money, reduce greenhouse gas emissions and improve air quality,” said Bob Christensen, PACCAR vice president and Kenworth general manager.
In addition to aerodynamic developments, Kenworth continues its industry-leading environmental efforts with its new, no-idle Kenworth Clean Power system and Kenworth medium duty hybrid-electric truck.
The Kenworth Clean Power cooling and heating system begins production this summer as an option for the Kenworth T660 with a 72-inch AeroCab? sleeper. “Customers with high idling time may receive as much as an 8% improvement in fuel economy by not idling, thanks to Kenworth Clean Power,” said Mike Dozier, Kenworth chief engineer. The system also includes high-output, low-current LED lighting and an enhanced sleeper insulation package that provides a significant advancement for energy efficiency in the trucking industry.
In 2008, Kenworth will begin production of medium duty hybrid trucks. The new Kenworth T370 Class 7 and T270 Class 6 models will be packaged with the hybrid option. Hybrid trucks offer significant potential, particularly in urban and utility applications, to improve fuel economy. The hybrid vehicles target a 30% improvement in fuel consumption combined with responsible environmental practices.
Kenworth recently received the prestigious 2007 Industry Innovation Award for alternative fuel trucks presented by the Alternative Fuel Vehicle Institute. The award honors companies that collaboratively identify solutions to help overcome obstacles to clean transportation alternatives. Kenworth received the alternative fuel industry’s top innovation award for the Kenworth T800 liquefied natural gas (LNG) truck.
The Kenworth “White Paper on Fuel Economy” focuses on aerodynamics, component specifications, advanced technology, route management, driver behavior, and proper maintenance. The electronic white paper is available on Kenworth’s home page (www.kenworth.com/FuelEconomyWhitePaper.pdf).
That kind of customer support, combined with Kenworth’s quality products, contributed to Kenworth’s reception of 2006 J.D. Power and Associates awards for “Highest in Customer Satisfaction for Over the Road Segment and Pickup and Delivery Segment Class 8 Trucks, and for Heavy Duty Dealer Service”* two years in a row.
Tags: kenworth truck, medium duty hybrid trucks, Trucks
