We live in a challenging time, gas is priced higher then ever before and the economy is quite troubled, thus jobs are being eliminated, people are being fired, and there is less shipping as the economy contracts and on it goes.

Its a time of transition and yesterdays parameters that were the basis of making yesterdays judgements and decisions are now not necessarily correct under the new market circumstances and conditions in our current down economy, so previous decisions such as owing and operating expensive trucks now need to be reviewed with different conclusions being made.

Lets talk about expensive commercial trucks.

With the current cost of diesel fuel, insurance, many independently run and owned trucks are no longer feasible business enterprises. Simply stated it cost too much to run the truck and the independent operator owner cannot afford to continue in the business under current economic conditions.

The one factor that can be controlled may be your debt on the truck. If the truck is heavily financed and cost quite a bit, say $75,000 and up, by renegotiating the debt service downwards, this may be the one factor that you can control that will permit ongoing business as opposed to taking the truck of the road all together and still being obligated for the debt payment but not earning any cash.

So rather then allowing this catastrophe to happen which is a disaster for all concerned, you could try to sell the truck and get out of the debt and the business but there is no market for used trucks as the market is flooded with operators wanting out of their too expensive truck and their is no demand for resale at prices that can alleviate the debt on the truck.

If we engineered a workout and convinced the bank to discount the note significantly to partially make up for the higher cost of operating, the independent driver may be able to stay on the road and earn, and pay the reduced note rather the default and lose the asset all together.

If the decision is to get out of the trucking business all together, then a workout will facilitate that as well as the truck can be sold short with the bank forgiving the unpaid portion and the debt requirements wll be over freeing the individual to explore other earning opportunities unsaddled with the debt of the truck which cannot be operated successfully.

This is a win win for everyone including the bank as they have no real interest in accumulating trucks which they must insure, and maintain and eventually sell at auction at hugely reduced prices.

If you are a truck owner and fit this situation, call me, I can provide you with strategies to implement a workout plan and reduce your debt  allowing you to operate even with the high cost of fuel, or to sell and not be saddled with the shortfall debt.

Call me, if your in this situation, I can provide you wth some direction and guidance. 413-549-2966