USCCLG

U.S. Corporate Capital Leasing Group Inc.

Kenworth Truck Clearance Sale

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In today's economy, start up and seasoned businesses have an unique opportunity to acquire an
attractive deal for any type of Kenworth truck. The first option, for the buyer, is to visit their
local dealer and find his truck there. This is great place to start and obtain pertinent information
that will be used later in the data gathering process. From there, it is recommended searching the
internet and its mass volume of data that is available. The potential buyer can visit such sites as
truck paper and truck trader etc to view thousands of listings of trucks available across the
United States. He is able to sort and sift through this vast data and should be able to find a truck,
in any city and/or state across the U.S, that meets his acquistion requirements. Once he has
located a source of trucks available to him, he is able to contact these sellers and negotiate a deal
that might be able to meet his needs. Once he is agreed to a price and its particulars, his next
hurdle is to find adequate financing in today’s complex lending world of this commodity.

The type of Kenworth trucks we are identifying for this article is the following:
Kenworth dump trucks, Kenworth semi trucks, Kenworth garbage and refuse trucks, Kenworth
Tow trucks, Kenworth Cement Trucks, Kenworth Concrete Trucks, Kenworth Flatbed Trucks,
etc

Today, the financing arena for Kenworth trucks has become much smaller, especially for over the
road trucks.. Lenders, in the past, that use to finance this niche market have either pulled their
portfolio funds out of this area or have modified its lending requirements. It is not unheard of
today that a start up business must commit to a down payment of between 10% - 30% of the
acquistion cost of the International truck to enter this market. The seasoned business with good
credit might be able to get in as little as one payment down plus documents fees but must have
either A or B Credit. Other seasoned businesses that don’t meet these credit requirements, may be
required to put up 10-20% down or either put up additional collateral as their credit scores fall
below 600. Most buyers don’t enjoy these tightening financial requirements, are locked out of
this market, and will start looking for alternatives that are available due to market conditions. In
addition to the market requirements of substantial monies due upfront, the conventional lender
has modified his risk/reward factor for the failure and possible repossession of these trucks.
Therefore, the rate and/or interest factor that the lender charges has gone up making it a bigger
challenge to complete the financing end once the want to be buyer locates his acquisition….

As the economy has weakened due to market conditions, including diesel gas reaching $5.00 or
more per gallon in certain states, the route of conventional financing has changed as we know it.
The lender has acquired another problem that makes their equation a little more complicated. In
the past year as the price of food has gone up, the real estate markets have taken a toll for the
worse and other world factors have caused the banks to be more unstable, the trucking industry
has become more volatile. As the increase of defaults on the payments of Freightliner and all
other trucks have risen to all time highs, the lenders have been taking back these trucks by the
droves that are earmarked as repossessions. This has caused a problem with normal lending
practices and trying to balance it with a non producing income portfolio. If these lenders don’t
act swiftly and prudently, the combination of these two type of portfolios can be devasating to
the lenders’ bottom line. A third factor to consider is the off lease truck. These trucks are being
returned to the lender and they must act accordingly with this third factor.

By definition, a Kenworth off lease Truck has been returned to the lender as the lease has
expired. The lessee has made a decision to return the item in lieu of exercising the buyout
option. A repossession is different than an off lease because it has arisen due to a default of the
lessee for non payment terms or a violation of the terms of the lease. Either way, the lender has
taken these trucks back and/and now must recondition these trucks and either sell these trucks or
re-lease them.

The lender can either advertise their off lease and repo inventories through their internal sales
force, trade journals such as truck paper, truck trader etc or utilize outside professionals such as
brokers to move their inventories as quick as possible. Sometimes, as these inventories either sit
or whatever reasons aren’t moving, the lender will put these items up for auction.

At the present time, the lenders have two different types of financing portfolios to consider and
must act accordingly. Normal lending on new business deals still require stringent lending
practices based upon the credit markets and the risk/reward factors lenders perceive out there in
the financial markets. The second type of portfolio, for the off lease and repos, require possibility
a more lenient approach to liquidating their inventories prudently and recreating the income
stream for the lenders. This will be discussed below.

Today, some of the lenders in the financial market have advertised personal credit qualifications
as low as 600, prior bankruptcy rules amended or ignored, and start up businesses welcome.
Additionally, the front money to commence a lease can start as low as first payment only to
whatever you might able to negotiate. Some of the lenders have application only programs up to
$250,000. There are no financial statements, income tax returns or bank statements required.
Additionally, some lenders may defer some of payments to get the semi trucks financed. The
buyout clauses on these over the road trucks can range from a $1.00 buyout to 10% to 20%, Trac
leases to possible fair market value buyouts. One should understand these clauses because they
have an impact on the passing of title.

These favorable financial arrangements by the lender has stimulated the buyers wants and needs
to either enter the trucking industry as an owner operator and/or possibility an expansion of a
existing business. First Time buyers, whom were locked out of this market in the past, now has
an unique opportunity to earn more revenue by acquiring an International truck for himself. A
$50,000 over the road Kenworth truck might require as little as $1400 down to commence the
financial obligation. Other lenders that might have required up to 30% down in the past might
accept as little as 10% to acquire one of their repos and/or off leases…..Additionally, some
lenders may offer favorable monthly payment terms vs standard lending to acquire their off lease
and repos vs. the buyer looking to acquire a truck at a dealership..

In conclusion, this is a buyer’s market for Kenworth trucks. One should evaluate all the factors
relating to this acquisition including gas costs, air emissions,
environmental type requirements., buyout clauses acquisition costs and its related financing.

Additionally, there are two distinct financing markets out there, one for the normal acquisition
from the dealership and the possibility of acquiring a repo and off lease from a lender at
favorable market and financing terms. As always it is advisable, if possible, to locate financing
prior to truck shopping, it could save a lot of time and stress.

Happy hunting for your acquisition and related financing…

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