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BUSINESS Those trucks will have about 550,000 miles. Arrow Truck Sales in Atlanta is buying more trucks now than in recent years, due to demand, but low- mileage trucks are hard to find, says Sales Manager Dusty Davis. "Two or three years ago you could buy 4- or 5-year-old trucks with 450,000 to 550,000," Davis says. "Now you see them with, realistically, 650 to 750." A 2006 or 2007 model Freightliner with an '06 Detroit Programs for buyers low on cash or credit Although lenders are more willing to finance owner-operators' used truck buys than they were in 2009 and 2010, buyers lacking a big down payment or extra money for a warranty can often find carrier programs that meet their needs. For instance, Schneider National's Fleet Sales Department has partnered with Commercial Fleet Financing to offer the opportunity to buy a truck with no money down and $99 payments for the first two months. Buyers do not have to be affiliated with Schneider. "It gives them the opportunity to generate revenue," says Jason Giese, president of major fleet and dealer ser- vices for Commercial Fleet Financing. "It gives a nice 60-day cushion for them to build up emergency reserves." The program is for buyers with a 675 credit score and home ownership or three years of owner-operator experi- ence. All trucks listed at schneidertrucks.com can be pur- chased with the offer, and at no point do the trucks have to be leased on to Schneider. Buyers purchase the truck outright from the carrier. Ryder Vehicle Sales is trying to assist buyers of older trucks by offering a one-year warranty program bundled with the purchase. The Ryder Road Ready Plus Warranty covers internally lubricated engine and transmission parts, injectors, piston rings and pins, drive axles, turbochargers and other components. Ryder's inventory mostly includes Navistar, Volvo and Freightliner trucks that are about 7 years old with 600,000 to 700,000 miles, says John Diez, a vice president. These trucks run about $28,000 to $33,000 without the warranty, Ryder says, or about $30,500 to $35,000 with the warranty. Qualifying for a good rate Though some owner-operators may find it difficult to get financ- ing, lenders are much more willing to work with used truck buy- ers than in recent years, says Eddie Walker, owner of Best Used Trucks in Fort Worth, Texas. High-mileage trucks make lenders more hesitant, and they do want "decent down payments," he says, often around 20 percent. With a credit score of 600 or better, buyers can land a 600,000- mile truck with a 20 percent down payment financed for two to three years at 12 percent to 15 percent. First-time buyers could see interest rates about 18 percent to 20 percent, Walker says. He warns first-time buyers and buyers with credit problems to be wary of service charges that could add $1,000 or more to monthly payments. Many lenders are looking past credit scores to "dig deeper" into buyers' credit profiles, says Alicia Collister, finance manager at Arrow Truck Sales in Atlanta. Yearly earnings, business longevity, how long you've had a CDL, a recent home foreclosure or truck repossession, and items that show up on public records all have a bearing on your financing potential. Interest rates at her office vary more than those Walker refer- enced, though, and the main contributing factors are how much you put down, the type of truck you buy, your credit score and your loan-to-truck value ratio. For owner-operators with good credit and who have a sizable down payment, local banks can sometimes offer rates at 10 per- cent, Collister says. Those with credit issues could see rates as high as 28 percent. Her company sells mostly to owner-operators, and lately the majority have been new or first-time owner-operators, she says. "There is money to lend, and there are aggressive lenders who will be giving new owner-operators the chance to get started," Collister says. "If you have enough money down and your credit is not completely shot as far as a foreclosure, bankruptcy or truck repo, you're going to get approved somewhere." The upturn in freight over the past two to three years has brought many lenders back into the business, says Scott Carr, presi- dent of Transport Funding in Kansas City, Mo. "A couple years ago there weren't very many lenders financing used trucks," he says. "Freight's available and carriers are giving owner-operators ample opportunity to haul it," he says. "While the price of trucks is high, the ability to make an economic return with that investment is there. All you have to do is put in the hard work." Carr says meeting debt obligations and saving for a 25 percent down payment should open the door for a first-time buyer's financing. Those buyers also do well if they have three to four accident-free years in trucking. 24 | Overdrive | October 2012