TRUCKING 101

February 26, 2020

Northland Credit Corporation has over forty years’ experience at financing over the road trucks and trailers. To follow is a summary of how to get into the trucking business and stay in the trucking business.

1. Start with a good work ethic and a positive attitude. Both can be inherited or self-taught. Whether you baled hay for pa or mowed lawns for the neighbors, it is required not to be afraid to get up when the sun rises and stop working until the sunsets. The DOT won’t let you drive those hours all week, but you get this idea.
2. When starting to get experience as a driver to prove to yourself, you can do it. Pay attention to everything, especially the mechanical knowledge, to fix the mechanical problems that will be coming your way. Make sure the PM’s (preventive maintenance) is done religiously. Be satisfied with making your 900/wk. It is only temporary until you are ready to become an owner-operator.
3. Follow our simple “TRUCKERS MATH 101” below when you are ready to take the leap.

Truckers Math 101

	Monthly
Gross Income - 3000/miles per week at 1.50 a mile = 4,500/week	18,000
Less: Truck ins. & maint.	-1,000*
Less: Rent/House payment	-1,200*
Less: Fuel-30% of gross income	-5,400
Less: Credit card	-250*
Less: Car payment	-350*
Net Income:	-6,800
25% Rule: Allowable for Truck Payment	-1,700
*Payments due as a company driver or owner operator.

The rule of thumb is to keep your truck payment at 10% or less than your gross income. Also, keep in mind to try to add a truck warranty to the financing whenever possible. A six month or one warranty is relatively inexpensive and can usually be financed.

As you can see, you just went from a 3,600/mo being a company driver to 10,900/mo. and being an owner-operator. Now you are ready for this road as an Owner Operator.

We hope this was a helpful exercise in how to be successful on the road.

Feel free to contact NCC at 888-485-5834 for more information or visit https://northlandcredit.com/ to apply for your new truck.