40% of Heavy Truck Loans Have Defaulted in the Past Two Years

During a recent conference call with financial insitutions in the heavy truck industry, we found the amount of carriers that default on loans are near 50 percent. The worry of us, is the number will probably push higher before it goes lower due to BAD deals initiated by people that are desperately trying to get a piece of the $800 billion dollar industry with little to no coaching.

 

40% of Heavy Truck Loans Have Defaulted in the Past Two Years
40% of Heavy Truck Loans Have Defaulted in the Past Two Years

During a recent conference call with financial insitutions in the heavy truck industry, we found the amount of carriers that default on loans are near 50 percent. The worry of us, is the number will probably push higher before it goes lower due to BAD deals initiated by people that are desperately trying to get a piece of the $800 billion dollar industry with little to no coaching.

 

This number isn't to scare you but to prepare you. A STAGGERING statistic and one of the primary reasons why banks are requiring a ton of money up front on down payments these days...

 

During a recent conference call with financial institutions in the heavy truck industry, we found the amount of carriers that default on loans are near 50 percent. The worry of us, is the number will probably push higher before it goes lower due to BAD deals initiated by people that are desperately trying to get a piece of the $800 billion dollar industry with little to no coaching.

 

Rates won't save inefficiency! You can't outrun inefficiency. The current climate is a sellers marketplace and dealers are certainly taking the fair share leaving banks on the island to assume the large portion of risk.

 

Is it a good time to get into the industry? Sure, but for the RIGHT person with the RIGHT education and the right resources. 4 out of 10 trucks have been repossessed...Know your numbers, have a plan and don't "outkick your coverage"....