Proposition 1B Funding: "Proposition 1B, the wide-reaching transportation bond voters approved in 2006, included one billion dollars to fund projects that reduce air pollution associated with freight movement along California’s trade corridors. The first $25 million of that funding was allocated by the California Air Resources Board (CARB) in February, 2008 to “early start” projects that are ready for quick implementation, and the AQMD received $13.8 million for truck projects."
*Sort of. Kim Foster of Pasha Group actually managed to finagle some of this money for his company, which is in the process of acquiring seven new Cottrell strap units.
Kim says that in return for $100,000 grant money per truck, recipients have to meet California's more stringent environmental regulations. He says it's an 8 year agreement with the state of California. Here are just a few of the requirements:
200 visits to the port per year, per truck
All trucks have to be California plated vehicles (all in-state)
98% of the miles have to be in the stated corridor (I 15 corridor from San Diego up to L.A. Mira Loma area.)
Company trucks are subject to GPS monitoring by state. There is also additional compliance reporting, viz.; fuel reports and drivers' logs (on top of regular reports)
They have to DESTROY the old trucks they are replacing.
And if anything changes in the eight years of the agreement, the company agrees to pay California ALL of the money back.
But in exchange for this, the Prop 1B funding is giving this particular company $700,000 to go toward new trucks. Only in California.
Thursday, December 18, 2008
Friday, December 12, 2008
Pot calling kettle black?
Madison County Record | Maag accuses Cottrell of dirty tricks in removing suit to federal court
Maag accuses Cottrell of dirty tricks in removing suit to federal court
12/11/2008 8:18 AM
By Steve Korris
Maag
EAST ST. LOUIS - Georgia trailer maker Cottrell improperly removed a Tennessee man's injury suit from Madison County to federal court, according to attorney Thomas Maag of Wendler Law in Edwardsville.
Wednesday, December 10, 2008
Car hauler equipment below cost!
This is an unbelievable deal. The price includes F.E.T!! Anybody buying a truck in the next year or two will look back and wished they'd bought this one, NEW 2007 MODEL YEAR WESTERN STAR 4900FA, S60 Det 515 HP, 13 Spd OD, Eng Brake, a/r susp, 3.21 Ratio, 249" WB, 48" Star Light Slpr-Low Roof, 255/70R22.5s, Alum Whls, 14,600# FA,40,000# RA, 10 Cars, 2008 COTTRELL 3 car SL H/R, air wgt gauge, LED lights, slider deck over tandem, sliding 5th whl tlr., 2008 Cottrell 7510ST intraxx axle & susp., lift kit truck & tlr., alum flipper, tandem drop pockets, recessed L3 track, 7 night load lights, , air gauges, strobe lights RU, Stk #NEW Z23969/247901
..............................................$200,000
Click here for more info.
Quick lesson in Contrarian Economics. Most folks would agree that it's almost always a good idea to pay less for an asset than more. The folks who really need new trucks for their business... but delay... are missing a huge opportunity to do just that. I mean, this here is a chance to pay a lot less. The folks who wait are going to pay $20,000 more for equipment when times are good and the dealers have more customers competing for their equipment. (Anybody remember 2006-2007?) Can I get an Amen? Most of the people I know who've got more money than me have two things in common-- and not paying retail is one of them. Ok, sermon over.
Autohauler Shopper Newsletter December 2008
Autohauler Shopper Newsletter December 2008: There's a ton of info in this month's issue. Lowering kits. New Boydstun trailer video. Cottrell dealer selling below cost. Car hauling jobs for company drivers and owner operators. Some new repair shops you might not have hard of yet that specialize in car hauler trailer repair. Plus it's written in complete sentences, unlike this article!
Monday, December 08, 2008
Chain to strap car trailer retro-fit
If you are one of the car haulers that have been told that you have to strap cars down to the trailer, you might want to check out T&C Welding's new Flat Foot Safety System. They have figured out a way to modify C10, C12 and C14 trailers so you can load them flat on the ground. They will also convert your chain ratchet boxes to straps, if you want to get away from using hand ratchet wheel straps. They have done a bunch of them already and have been having good luck with them. Cost for the basic Flat Foot Safety System conversion is about $5,500. (the wheel strap kit is additional)
Friday, December 05, 2008
Tuesday, December 02, 2008
Monday, November 24, 2008
Car buying trip
The front end of my 1999 Mercury Grand Marquis started making some strange noises last week. A trip to my buddy the mechanic revealed about $1000 worth of repairs would be required. Hmm... I have a ten year old car with 125,000 miles on it... the auto industry is in crisis. I figured it might be a good time to go down to the local car dealer. I found a great little Ford Focus for $10,000. When I tried to buy the car, the salesman told me "they like to see 30% down". I asked what the interest rate was going to be. They had about three different people sit down with me and try to talk about payments. I insisted I wanted to know what the hell the interest rate was. Finally somebody told me what the interest rate was 10%. I walked out. One of the reasons why I have really good credit is because I try to avoid over-paying for stuff!
On my way home from the Ford dealer, I saw Toyota had 0% financing signs in the windows. I know I won't be able to get one of their cars for $10,000, but I'll get that back when I go to trade it in.
For those of you that are interested, I was offered $400 for my old Mercury!
On my way home from the Ford dealer, I saw Toyota had 0% financing signs in the windows. I know I won't be able to get one of their cars for $10,000, but I'll get that back when I go to trade it in.
For those of you that are interested, I was offered $400 for my old Mercury!
Thursday, November 20, 2008
US Bank: "No loans for owner operators."
Got a call from Therese at Capital West. She said that unless a company has five or more trucks in their fleet, they will not loan money to any long haul trucker. Doesn't matter if your credit score is perfect. Doesn't matter if you've always paid your loans on time. Doesn't matter if you have a contract to haul cars. She said that the underwriters at US Bank are concerned that if a loan goes south, anybody with fewer than five trucks will be hard to find in the event they need to repo the truck.
If you do have more than five trucks, here is what you should expect to provide for a loan of $200,000:
Two years tax returns.
Personal financial statement.
Proof of home ownership.
Last 3 month's bank statements.
At least 10,000 average balance in your main banking account.
I asked what sort of interest someone with a perfect truck payment history could expect, with five year's prior experience in the industry. She said around 11.8%, but that was on a lease deal.
If you do have more than five trucks, here is what you should expect to provide for a loan of $200,000:
Two years tax returns.
Personal financial statement.
Proof of home ownership.
Last 3 month's bank statements.
At least 10,000 average balance in your main banking account.
I asked what sort of interest someone with a perfect truck payment history could expect, with five year's prior experience in the industry. She said around 11.8%, but that was on a lease deal.
The freeze in Florida.
Talked to a customer yesterday who said that the auction in Ocoee, Florida was laying off 80 workers. He said the auction's business was down 69%.
Tuesday, November 18, 2008
Truck Finance Update 3
Was up at Tec Equipment in Portland and spoke briefly with Duane Zeigel, one of the auto transport sales reps. He says he's getting some deals done through Volvo credit, and has been able to get financing for customers with FICO scores below 700.
Wednesday, November 12, 2008
Truck Finance Update Part 2
Just spoke with Benny Dean at North East Auto Truck Brokers. He's telling me guidelines from lenders are tightening up. If you've got a 670 FICO, then you might be able to get an 8.5% rate. If you've got less than perfect credit, you're looking at anywhere from 10-14%.
There is money out there available, but you're going to pay more for it.
There is money out there available, but you're going to pay more for it.
Saturday, November 08, 2008
I call B.S.
Nov. 7: Ford’s CEO Alan Mulally discusses his company’s financial report on CNBC. During the interview, he says that Ford has adjusted output to sales.
Nov. 6: I talked with someone at Hansen and Adkins in California who said that the main freight they're hauling these days is for Ford.... to new storage lots they're leasing for the Ford XLT Lariat Crew Cabs nobody is buying.
Nov. 6: I talked with someone at Hansen and Adkins in California who said that the main freight they're hauling these days is for Ford.... to new storage lots they're leasing for the Ford XLT Lariat Crew Cabs nobody is buying.
Wednesday, November 05, 2008
Truck Finance Update: Tougher, but Possible.
11/08/08 Update to the Update
If your business really demands additional equipment, you might want to check out the re-marketing departments of the major finance companies. One Cottrell dealer I spoke with recently told me that finance companies are dumping equipment on the market, possibly in hopes of taking part in a government bailout plan. A 2006 truck and trailer which would ordinarily sell for around $200,000 was recently sold for $116,000 by the finance company who had to repossess it. The truck had 300,000 miles on it! The guy who owned that truck before you probably didn't have the money to keep up with the maintenance on it either. You could buy a truck that has serious issues relating from deferred maintenance.
I was talking with Mark Mecklem at Boydstun the other day about truck finance issues in the current economic climate. Mark says that there is no doubt that conditions are more challenging, but they're still finding ways to get deals done.
He says that slower unit sales are not necessarily directly related to a financing slow-down. In many cases, it's simply a matter of a trucking company deciding to delay purchasing new equipment until they get enough business to justify the investment.
Mark says that some finance companies like GE Capital have tightened their lending guidelines and raised interest rates, but this isn't something that is industry-wide.
On the whole, what lenders are looking for is the following:
Decent FICO scores, not necessarily perfect. For people with less than perfect scores, loans are still. possible by cross-collaterizing the deal, i.e., lien against an existing asset like a truck.
Previous experience in the industry
A history of making truck payments on time
And even if all of this doesn't line up exactly, there are so-called "hard-money" lenders who will take a look at a deal and listen. If you've got the business to justify the investment, they just might be willing to make a loan. After all-- if they're not lending money, they're not making money.
Bottom line: if you really need a new truck and you've got the business to support the investment, don't sit on the sidelines thinking you can't buy a truck. The deals that need to get done will probably get done.
If your business really demands additional equipment, you might want to check out the re-marketing departments of the major finance companies. One Cottrell dealer I spoke with recently told me that finance companies are dumping equipment on the market, possibly in hopes of taking part in a government bailout plan. A 2006 truck and trailer which would ordinarily sell for around $200,000 was recently sold for $116,000 by the finance company who had to repossess it. The truck had 300,000 miles on it! The guy who owned that truck before you probably didn't have the money to keep up with the maintenance on it either. You could buy a truck that has serious issues relating from deferred maintenance.
I was talking with Mark Mecklem at Boydstun the other day about truck finance issues in the current economic climate. Mark says that there is no doubt that conditions are more challenging, but they're still finding ways to get deals done.
He says that slower unit sales are not necessarily directly related to a financing slow-down. In many cases, it's simply a matter of a trucking company deciding to delay purchasing new equipment until they get enough business to justify the investment.
Mark says that some finance companies like GE Capital have tightened their lending guidelines and raised interest rates, but this isn't something that is industry-wide.
On the whole, what lenders are looking for is the following:
Decent FICO scores, not necessarily perfect. For people with less than perfect scores, loans are still. possible by cross-collaterizing the deal, i.e., lien against an existing asset like a truck.
Previous experience in the industry
A history of making truck payments on time
And even if all of this doesn't line up exactly, there are so-called "hard-money" lenders who will take a look at a deal and listen. If you've got the business to justify the investment, they just might be willing to make a loan. After all-- if they're not lending money, they're not making money.
Bottom line: if you really need a new truck and you've got the business to support the investment, don't sit on the sidelines thinking you can't buy a truck. The deals that need to get done will probably get done.
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