Are you ready to purchase your first semi-truck? Or are you at least considering it? It’s a dream many drivers have. 

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However, it can be a confusing, frustrating process and you may not know what you need to do to get there. After all, it isn’t just a matter of buying a truck — there’s a lot of experience you need to gain first and details you need to work out.

Becoming an owner-operator is a big step in your trucking career, and buying your first semi-truck is one of the most important decisions you’ll make. It’s not just a vehicle — it’s your business, your livelihood, and your home on the road. 

Here at Competitive Equipment Sales (CES), every day we help drivers get on the path to ownership by first leasing a truck and then eventually purchasing one. You could say we know a thing or two about this process. 

With so much riding on this decision, let’s break it down step by step to help you make the best choice for your future.

Financing Your Truck

Financing a semi-truck is a huge step. Most drivers don’t pay for their first truck in cash — that’s a massive chunk of change to come up with —  so financing is the way to go. Preparing for financing involves more than just comparing interest rates. In fact, many drivers start planning to purchase their trucks for years before they ever do. It can be an excessive, lengthy process.

Save for a Down Payment

The more you can put down upfront, the less you’ll pay in interest over the life of the loan. If possible, aim for at least 20 percent of the truck’s price.

A great way to come up with a hefty down payment is by using the money you’ve previously put into a maintenance or savings account. For example, if you’ve been leasing, most companies require you to place a minimum per-mile amount into an account. Doing so means you’ll have money to cover inevitable repairs. If you’re leasing a truck from them, they want to know that you’ll take care of the truck. 

If you’ve been lucky and had few repairs or you filtered extra money into your maintenance account, utilizing these funds could be a good way to make a down payment on a new truck. This can significantly reduce the amount of money you have to come up with for a down payment.

However, if this is the route you take, make sure you consider what will happen if your new truck requires repairs. You don’t want to use all your money on a down payment because you won’t have money for repairs. We’ve seen plenty of drivers get into a bind this way. They can’t afford the repairs so they have to get a loan to pay them off or they end up defaulting on their truck payment. 

Shop for Lenders and Dealers

Don’t be afraid to consider offers from a few different lenders and dealers.

Compare rates and terms from banks, credit unions, and specialized truck lenders. Ask about prepayment penalties and other hidden fees.

You can buy a semi-truck from a dealership or a private seller. Both options have their pros and cons:

Dealerships

• Offer warranties and financing options, providing added security.
• Typically have a wide selection, allowing you to compare models easily.
• May charge higher prices due to added services and overhead costs.

Private Sellers

• Often offer lower prices, which can save you money upfront.
• Limited warranties or none at all, so you’ll need to inspect the truck thoroughly.
• Requires more due diligence to avoid scams or hidden issues.

Regardless of where you buy, always get agreements in writing and double-check the truck’s title to ensure there are no liens or ownership disputes.

Consider talking to a dealer years before you ever intend to purchase a truck. They can give you advice on how to get your finances in order. 

Getting Approved

Getting approved for a loan to finance a new semi-truck can be a long process and multiple factors are considered, from your credit score and debt-to-income ratio to your driving experience and previous experience leasing or owning a truck. 

A dealer or lender may or may not look at your bank statements or tax returns, but they’ll definitely look at your credit history. Specifically, they’ll look at your pay net (your commercial credit score) and some sort of comparable debt in your credit history, like home ownership. If you own a home, it shows the commercial lender that you can not only talk the talk and commit to making monthly payments, but you can also walk the walk because you’ve been doing it. 

This is where previously owning a semi-truck can help you out. Some lenders won’t even look at you until you’ve financed a truck before. But because you’re a first-time truck buyer, you obviously won’t have that in your credit history. You’ll have to find a different lender and utilize your truck leasing history. Making regular high truck payments will look good on your record. Lenders won’t consider approving your loan request at all if you haven’t leased before.

If you don’t have this sort of credit history, it’s going to be very hard to get approved for a truck loan. To understand why, consider this scenario: 

You’ve just left the house for the first time at 18. You’ve landed a good job and decided to purchase a new vehicle. However, no lenders will approve you for a car loan because you have no credit score. The only way any lender will give you a loan is with a very high down payment and an equally high interest rate. 

It’s the same thing when you’re trying to buy a semi-truck with no leasing history or comparable debt. 

For reference, a standard interest rate on a truck loan is usually somewhere in the 11 to 19 percent range. If lenders want you to pay significantly more than that, it’s probably not in your best interest to take that deal. If you can get an interest rate below 10 percent, it probably means you have a phenomenal credit history and/or you have a large down payment.

Where you also could run into issues getting approved is if you have a lot of credit debt. For example, if you’ve purchased a pickup truck, motorcycle, and a four-wheeler all on credit, lenders aren’t going to be very confident in your ability to make a truck payment. 

If your credit needs improvement, consider paying down existing debts before applying for financing.

Understand the Financing Terms

Before you sign on the dotted line, look at the total cost of the loan, not just the monthly payment. Make sure you can afford the payments even during slow freight periods. If you have questions about the leasing terms, ask. Consider bringing in a legal expert to help you understand the terms if needed.

Budgeting for Ongoing Costs

Owning a semi-truck is about more than just the purchase price. It’s crucial to plan for the ongoing costs that come with ownership. A lot of drivers only care about what’s being taken out of their check for the truck payment; they don’t think about the other things they need to pay for to keep the truck running. You can set yourself up to fail if you don’t consider all the other expenses you’ll be taking care of as a truck owner-operator.

Here are the other costs to keep in mind: 

• Warranties: Warranties can be worked into the loan payment but you can also purchase one separately. See how much one costs and what the terms look like. Warranties may not cover everything, but they’ll save you from catastrophic failures that could bankrupt you.
• Insurance: Coverage for liability, physical damage, and cargo is essential. Shop around for competitive rates. You’ll also have to source the open market for things like medical insurance and retirement plans. 
• Fuel: While fuel efficiency matters, fuel costs will still be one of your largest expenses. Monitor fuel prices and plan routes strategically to save money.
• Maintenance and repairs: When you’re operating on your own, there’s no one mandating that you have a maintenance fund. It’s something you have to do yourself. Set aside money for routine maintenance like oil changes, tire rotations, and brake inspections, as well as unexpected repairs. Budget at least 10-15 percent of your revenue for maintenance.
• Permits and registration: Depending on your routes, you may need permits for specific states or types of loads. Keep these costs in mind when planning your budget.
• Parking: Consider where you’ll park your truck when not on the road. Some drivers rent parking spaces, while others park at home or terminals.

By planning for these costs upfront, you’ll avoid financial surprises and maintain a steady cash flow. If you don’t think you’re making enough money right now to cover these costs, it may not be the right time to buy a truck.

Understand Your Truck Needs

Before you start shopping, take some time to think about your specific needs as a driver and business owner. This is more than just deciding on a truck — it’s about choosing the right partner for your career. Ask yourself:

• What type of freight will you haul? Different freight types require different equipment. For example, refrigerated trailers need trucks with reefer hookups, while flatbed haulers may need precise specs so they can haul large, heavy freight. If you get a truck with the wrong specs, you won’t be able to haul the kind of freight you want. 
• What specs do carriers require? If you’re signing on to haul freight with a carrier, your truck will have to meet certain requirements in order for you to haul their freight. If you buy a truck that doesn’t meet their specifications, you’ll have to find a carrier that accepts your truck as-is. Or, you’ll have to make significant modifications to your truck.
• Where will you drive? Long-haul routes call for sleeper cabs with comfortable sleeping quarters, while regional or local routes might work fine with day cabs. 

By knowing your needs, you’ll narrow your options and save time during your search. This step ensures you find a truck that aligns with your work style and goals.

New vs. Used: What’s Right for You?

One of the first decisions you’ll face is whether to buy a new or used semi-truck. Both options have their pros and cons, and the right choice depends on your budget, goals, and risk tolerance. Let’s take a deeper look:

New Trucks

New trucks might be shiny and fun, but they come with a high cost. However, you’ll be less likely to require major repairs — at least at the beginning of the loan. 

Here are some pros and cons of new trucks: 

• Higher upfront cost, often requiring substantial financing.
• Warranty coverage included, offering peace of mind for major repairs during the early years.
• Lower risk of immediate repairs due to brand-new components.
• Advanced technology and better fuel efficiency, which can save money in the long term.

Used Trucks

If you want to purchase a used truck, you’ll have fewer upfront costs. However, trucks that are older than six or seven years old are hard to secure financing for. Lenders think about what the end of the term is going to look like and how many miles will be on the truck. 

If you’re purchasing a truck that’s already seven years old, by the end of the loan that truck might need a major overhaul. That means a catastrophic failure could be near — and therefore you might default on the loan and they won’t get paid. 

Here are some other pros and cons of a used truck: 

• Lower upfront cost, which can be more accessible for first-time buyers.
• Higher risk of repairs depending on the truck’s age, mileage, and maintenance history.
• Limited or no warranty, meaning out-of-pocket costs for repairs.
• May have outdated technology or be less fuel-efficient compared to newer models.

If you’re new to ownership, a well-maintained used truck can be a cost-effective way to start. However, ensure you thoroughly inspect any used truck (details below) and research its maintenance history to avoid surprises.

Choosing the Right Make and Model

Not all semi-trucks are created equal. Popular brands like Freightliner, Peterbilt, Kenworth, and Volvo each have their strengths, and the right fit depends on your specific needs. Spend time researching the models available in your price range, and don’t hesitate to ask experienced drivers for recommendations.

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Consider the following factors: 

• Fuel efficiency: A truck with better miles per gallon saves money in the long run, especially for long-haul routes. Compare average fuel consumption for different models to estimate your operating costs.
• Horsepower and torque: Make sure the truck can handle the weight and type of freight you plan to haul. If you expect to navigate steep inclines or carry heavy loads, prioritize performance.
• Comfort: You’ll spend countless hours in the cab. Look for ergonomic features like adjustable seats, a well-designed HVAC system, and sufficient space for sleeping or storage. Some models also offer modern conveniences like touchscreen displays, navigation systems, and entertainment options.

Visit dealerships, attend truck shows, and explore online forums to gather insights about different makes and models. A little extra research now can make a big difference later.

Inspecting a Used Truck

If you’re considering a used truck, a thorough inspection is critical to ensure you’re getting value for your money. This step can save you thousands of dollars in repairs and downtime. Here are the areas to focus on:

• Engine and transmission: Check for oil leaks, unusual noises, and service records. Ask about any major repairs or rebuilds.
• Tires and brakes: Look for even tire wear, which can indicate proper alignment and suspension. Ensure the brakes are in good condition to avoid costly replacements.
• Suspension: Test for smooth operation and check for any sagging or damage. A well-maintained suspension ensures a smoother ride and protects your cargo.
• Mileage: While semi-trucks are built to last, high mileage can mean more wear and tear. Look for trucks with a reasonable balance of age and mileage.
• Interior: Make sure the cab is clean, comfortable, and functional. Test all controls, gauges, and electronics to ensure they work properly.

Don’t hesitate to bring a trusted mechanic or experienced driver with you to inspect the truck. A small investment in an inspection can prevent significant headaches later.

Getting Your Truck on the Road

Once you’ve purchased your truck, there are a few important steps to take before hitting the road:

• Register your truck: Get the necessary plates and permits for your operating area. Check local and state requirements to ensure compliance.
• Set up your business: If you’re becoming an owner-operator, establish a business entity, obtain a DOT number, and purchase insurance. Work with a tax advisor to understand your obligations.
• Plan your routes: Start building relationships with brokers or shippers to find consistent freight. Use load boards to identify opportunities.
• Stay compliant: Keep up with maintenance, logbooks, and all required inspections. Non-compliance can lead to fines or lost income.

The Path to Ownership

Buying your first semi-truck is a big step, but with the right planning and preparation, you can set yourself up for a successful career as an owner-operator. Take your time, ask questions, and lean on the experience of others in the industry. Remember, this isn’t just a purchase — it’s an investment in your future. 

If this article felt overwhelming and you still aren’t quite sure where to start, that’s okay. You might not be ready for ownership now, but you will be one day. 

For now, you can gain experience making truck payments by trying out a truck lease. CES offers a one-year lease with no money down and no credit check, making it easy for you to get into a truck and start getting the experience and credit history you need.