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Troy: Alright. Hello and welcome. The date is July 1st and you’re listening to the 57th episode of Big Rig Banter. I’m your co-host Troy Diffenderfer.
Lenay: And I’m your favorite co-host, Lenay Ruhl.
Troy: And hey guys I just wanted to take a minute and give a special shout out to all the professional drivers out there. You’re the ones keeping America moving during this challenging time
Lenay: And Pilot Flying J wants to say thank you as well. To show their gratitude for all you do, they want to give you more rewards and more points. It’s called Push4Points, and it can get you to four points faster while you’re racking up those hard-earned miles. That’s right, you can reach four points per gallon after only six qualifying fills.
Troy: Push4Points is available only in the Pilot Flying J ap for a limited time. It’s as easy as one two three, and here’s how it works. Step one: push the activate button in the app at the beginning of each month. Step two: fill your tank with at least 75 gallons of diesel. Step three: sit back and watch your point balance grow faster than ever before. You’ll increase your earning level after each commercial diesel fill over 75 gallons, from one, to one and a half, to two, to two and a half, and so on. You’ll be earning four points per gallon for the rest of the month after six qualifying fills.
Lenay: And what can you do with all those points? Well, your rig’s not the only thing that needs a fill up, right? When you get hungry or you need a tasty beverage, you can redeem points for in store savings on the essentials as well as merchandise for you and your rig. And when you pull into park for a while, you can redeem points for a reserved parking spot and WIFI credits at participating Pilot and Flying J locations.
Troy: And again, from Pilot Flying J, thank you for all you do, drivers, and stay safe on the road! See terms and conditions at https://pilotflyingj.com/app/?utm_campaign=PFJApp_Q12020&utm_medium=referral&utm_source=BigRigBanter
Lenay: So, what’s up? How are you today, Troy?
Troy: I’m doing good. I can’t believe we’re in July already. Like it feels like…
Lenay: I know.
Troy: summer hasn’t existed really.
Lenay: (laughing) I don’t know about that, but I can’t believe 4th of July is this weekend. Do you have any plans?
Troy: Um, I’m not sure. Probably, you know, it’s the first 4th of July at our new house. So, I’m hoping…
Lenay: Oh yeah.
Troy: To definitely do some grilling. My freaking grill already broke.
Lenay: So, what time should I come over?
Troy: I know. I know. Probably soon.
Lenay: (laughing)
Troy: But, yeah, my freaking grill broke and I was so proud of it.
Lenay: Ugh, that sucks.
Troy: You know, I was talking about it and everything and I like drug it out and it tipped over and one of the legs like completely snapped off. So, it still works, but I have to prop it up and it’s just like embarrassing.
Lenay: Yeah.
Troy: And it’s only been 4 months. And I’m too stubborn. I’m not gunna buy a new one this summer. I’ll probably just buy another one next summer and make this one work. But, I mean.
Lenay: Right.
Troy: Of course, that’s my luck.
Lenay: They just don’t make grills like they used to, Troy!
Troy: Exactly! (laughing)
Lenay: (laughing)
Troy: What about you? Do you have any plans for 4th of July?
Lenay: I don’t know. It’s kind of a weird holiday weekend, because I feel like some places are doing fireworks, but not any locally that I know of. My hometown of Lititz, Pennsylvania has the oldest 4th of July celebration in the country. And they actually canceled it. It’s like virtual only.
Troy: Oh gezz.
Lenay: Which is crazy. Yeah, so like, I mean, I’m telling you this thing is like a huge event, multiple days of like a parade and you know you pay to get in the park. There’s like food trucks and music and all kinds of stuff. It’s a huge, huge tradition that’s canceled and I look forward to it every year. Like 4th of July is my favorite holiday, so I’m a little bummed about that.
Troy: I know. I remember you telling me how you like have to put out your blanket, and stuff, like days in advance or like something crazy.
Lenay: Yeah. Yeah.
Troy: And how it’s super packed. But, I don’t know if I would like a virtual firework. I mean the only thing that I could think of that would be kind of cool would be to set-up a projector outside…
Lenay: Right.
Troy: And show it on a screen like that.
Lenay: That’s an idea.
Troy: That might be cool. But, that’s the only, I mean, what am I gunna do? Watch it on my laptop screen inside?
Lenay: Yeah.
Troy: That’s not as exciting.
Lenay: I know. I know. So, some of my friends from high school are having a little cookout at their house. So, I might stop out for that. But, otherwise, I’m not sure what will happen.
Troy: Yeah, well I’m sure we’ll enjoy our time off regardless.
Lenay: Yeah. I’m excited.
Troy: Yeah, but today we’re taking a deep dive into a subject that we’ve covered in the past. COVID-19 is still here. It’s not really going anywhere and it’s certainly affecting the trucking industry. But, we wanted to look at it in a more positive light. And doing some research, we actually realized that there are some really good things to come out of it. I spoke to, a friend, Chuck Zegley, who works in financing for trucks. This is pretty cool. Chuck and I actually went to high school together. And he’s been the one…
Lenay: Oh cool.
Troy: who has been hooking me up with a lot of these recent guests that we’ve had on the show. Chuck has all kinds of connections and every time I reach out to him and say we’re doing a subject on this, he’ll say, “Oh I have this perfect guy, so and so. I’ll give him your email.” He’ll text me his contact information immediately and he’s like, “Yeah, he’s waiting for your call.” And it’s as simple as that, so I appreciate Chuck immensely, but it’s cool to finally have him on the podcast episode. And, he’s the nicest guy ever. And he had a lot to say. He’s talking about truckers and how COVID has impacted the financial sector. Whether it’s financing a new vehicle or for a lot of owner operators, we’re seeing financial rates and credit rates come back to normal, which is a great sign. And he’s talking about the job availability aspects and to use his quote he said, “Now is the time to feed if you’re a hungry trucker.”
Lenay: I like that.
Troy: And I think he really put it well. So, let’s give that a listen. Alright, I’m here with Chuck Zegley from Navitas Credit. Chuck, how are you today?
Chuck: I’m doing good, Troy. How are you doing?
Troy: Good! Long time no talk. I wish we could see each other face-to-face. But, this is pretty cool. For those listening, you know, Chuck and I went to high school together and it’s been what, like 8 years…
Chuck: Since grade 12.
Troy: which is crazy to think about how long it’s been. But, I’m glad we got to talk to you. you’ve been hooking me up with a lot of our recent guests, so I really appreciate that as well.
Chuck: Absolutely man, anything I can do to help.
Troy: Yeah, so you’re coming on today so, you know, we know that COVID-19 has definitely impacted the industry, but, we were talking earlier and you know we usually talk every couple of days, but you were telling me how now is a better time than ever to find a trucking job. I liked your quote. You said, “Now’s the time to feed if you’re a hungry trucker out there.”
Chuck: (laughing)
Troy: So, why is that. What do you think we’re seeing a lot of opportunity right now?
Chuck: You know, the reason why I mostly would say we’re seeing a lot of opportunity right now is because I, myself, are just an opportunist through and through. A lot of these truck drivers I work with, they constantly have opportunities to be able to capitalize on. And, right now, what I’m seeing is, during this whole COVID pandemic, it just shook up every industry so much that there’s low hanging fruit for any new start-up to be able to come in and start plucking away and essentially be able to go from zero to hero with the right opportunity at hand.
Troy: Yeah, and that’s funny you say that because I think the spotlight has finally been turned on truckers. We’re seeing everything about essential employees and especially the trucking industry. There’s that quote that the trucking industry keeps America running. And, I think we’re really seeing that. Do you think the virus finally highlighted the importance of drivers and do you expect to see more changes to help drivers?
Chuck: You know, overall I would say yes, I have seen truckers be highlighted. The reason why I say that is because on the mornings that I can watch the news I always end up watching it for about a half-hour and one of the top five things that I always hear is they’re talking about truck drivers and the trucking industry and what’s going on and how truck drivers are working so hard and it’s just so cool because I’m a part of this trucking industry…
Troy: Mhm.
Chuck: And I really feel the impact that it’s starting to have. Not only locally, but nationwide. I work with truck drivers who pick up Amazon vans. You actually did a podcast with Sergio.
Troy: Mhm.
Chuck: He picks up Amazon vans from Baltimore and transports them out to the middle of the west. And, I went, shook this guy’s hand did a deal with him and the opportunity was there for him and he just capitalized on it.
Troy: Yeah, that’s really, really interesting. I want to talk more about the financial side of things. So, how do you think the virus has affected the industry financially, when it comes to credit or owner-operator looking to purchase a vehicle or anything like that? You said these credit approvals were fluctuating, but you’re kind of seeing them balance out now?
Chuck: Yeah. Overall, things are starting to get back to normal. With every action, there’s an equal and but opposite reaction, right? So, when the economy takes a turn, lenders are looking at each other saying. “Oh gezz, we really gotta be careful because if buy bad paper right now, it could essentially impact us.” So, a lot of lenders, what they did is suppose they had a minimum credit score requirement of 700, for all start-up trucking companies. They increased that just a little bit higher to like a 725. So, only the people who really, really, really had the opportunity to come in are able to capitalize because they have a credit score that essentially qualified them to be able to start their business. So, rather than Joe-Bob being able to start up his own trucking company, who’s got a 700 credit score, he no longer would qualify during the pandemic because all these lenders out there, so suppose there’s 25 lenders, all 25 of these lenders tightened up their requirements and they essentially made it more and more difficult for your average start-up to be able to get started in the trucking industry. So, across the board, I’ve had, you know in the past, let’s say I get 10 prospects trying to get qualified for start-up financing. And in the past, I might have been able to get 3 of them approved, because it’s very difficult. Now what I’m seeing is, it’s the same 10 prospects are coming, but I’m only able to get 1 of them approved.
Troy: Mhm.
Chuck: Just because the requirements they differ over time. Like I said earlier, with every action there is an equal, but opposite reaction. If the economy is doing bad, credit is gunna tighten up. If the economy starts to open back up and do really well, credits gunna loosen the restrictions a little bit, so that way more people can come on board.
Troy: So, basically, gate is becoming tighter or you know, the cost to play, cost to get into the game is going up a little bit.
Chuck: Essentially that and also, Troy, the good thing about this is suppose we had 25 lenders who do what I do. Can help a start-up individual trucker trying to get into a truck and become an owner-operator. Suppose there are 25 lenders out there, like me, who were able to do it. Because of this pandemic, I bet you between 10 & 15 of them have closed their doors to the business that they used to have their doors open to it that makes sense.
Troy: Yeah, that’s what I wanted to touch on. You mentioned it a little bit. You said a lot of finance, well not a lot, but some finance companies have gone under since the start of COVID-19. Does that have to do with, you know, these truckers not being able to make payments and things like that?
Chuck: Unfortunately, yes that is kind of what it all boils down to. But, a lot of these lenders that are going out of business, Troy, they’re buying what I call bad paper.
Troy: Mhm.
Chuck: And that essentially is the individuals who have a semi-low credit score, who have a history of late-payments, who might have had a bankruptcy a couple years ago. There were still lenders out there 6 months ago that would buy an individual who had a bankruptcy two years ago, right?
Troy: Mhm.
Chuck: But, what we’re seeing now is those lenders who did buy that bad paper are closing their doors now because, not only are their customers going belly up, but they are too.
Troy: So, going back to, you know, considering purchasing a rig or anything like that, whether you’re an owner-operator or a company looking to grow your fleet. What are some things they should be considering before looking into financing? Obviously, credit score is a big one, that you mentioned already.
Chuck: Mhm. That and what I tell all of my customers, Troy, to be honest, is I always say, “Listen, Mr. Customer. Whatever truck you end up wanting to purchase, I can finance for you, but do me a favor, go check out the truck. Take your mechanic. Kick all the tires on it. Get it up to operating temperature. Let it run for a while and just make sure it’s the truck that you want. Because, ultimately, you’re going to be paying for it for the next 3-5 years.” And a lot of these individuals, you know, they can just jump into a truck and start running, but, you know, who is to say that an overhaul doesn’t happen. Or, you know, an engine blows up or a head gasket needs to be replaced. And, all of a sudden they are out of work for 3 weeks as a start-up, with all their money out of their pockets. And they don’t have the money to be able to, you know, come up with an overhaul to get their truck back on the road to make the payments on the truck. So, my advice for any trucker is if you’re buying a truck and it’s used, take a mechanic. Make sure you inspect it very, very well because you’re gunna be paying for it for the next few years. On top of that, what I would do to help prepare themselves, is I would, one, make sure you stay on top of your personal credit score, like you and I have both touched on already.
Troy: Mhm.
Chuck: Credit score is amazing. The difference of twenty points is the difference of you getting approved for a truck or you getting declined for a truck. It’s absolutely nuts. Secondly, down payment is always, always, always huge. For all start-ups, no matter where you are buying a truck, there’s gunna be a down payment required. But, my advice to kind of add on that is to have that down payment saved up and then also have a little nest egg saved up in case small, minor repairs do come up on your new rig you’re able to get it fixed and get back on the road as soon as possible, so you can continue to make your monthly payments on your truck and you can continue to stay on top of yourself and essentially you can continue to thrive and live enjoy life as an owner-operator.
Troy: (laughing) I like that you mentioned, you know, doing a test run or at least, you know, seeing if that vehicle runs and this question just popped into my head. Is there a lemon law for big rigs? I mean, obviously, there’s one for used vehicles and things like that. I didn’t know if there’s anything that kind of, could protect a trucker that might find themselves in a situation, you know, where they’re making payments on a vehicle, but it’s necessarily running well.
Chuck: So, you know, it’s a great question and I’m glad you brought that up. I, myself, do not have experience on lemon laws, just because it’s outside the finance realm. I, myself, get a customer approved for a truck. Tell him, “Hey, make sure this is the truck you want.”
Troy: Mhm.
Chuck: He gives me the green light and I pay the supplier for the truck. To add onto that, Troy, one thing that I do offer is private party transactions. So, suppose you’re a truck driver and you see a truck on the side of the road that you want to buy. I would be able to make that purchase happen and finance it for you. Where most banks, they kind of stay away from those private party transactions.
Troy: Mhm.
Chuck: But, what I have noticed over the past four years of doing this is whenever I have a seller of a truck selling it to a buyer that I’m financing that seller makes sure that that truck is ready to roll and that it is completely spot free and not a single thing wrong with it and if there is anything wrong with it, they fully disclose what that is. So, essentially, I’ve never ran into an issue where I’ve had a seller sell a truck to a guy that was essentially a lemon. They always take care of each other. And that’s part of the reason why I really like the trucking industry.
Troy: For sure.
Chuck: It seems like every trucker is trying to look out for the other trucker. And, no matter what, we have been saying it for months due to this COVID, everyone’s in this together.
Troy: Yeah.
Chuck: The trucking industry has never been a tighter knit community, even now.
Troy: I can’t agree more. You know, just interacting with truckers all the time and interviewing everything. I like hearing so much positive stuff coming out of here cause it’s so easy to, you know, talk about the tough situations and the economic impact and things like that. You know, doing this podcast, obviously we have to touch on it, but we didn’t want, you know, to be hammering that nail in every single episode about all of the horrible things that this virus has, you know, taken from us. Or stress added, so I like that you definitely touched on that. And, is there anything else you’d like to add?
Chuck: Yeah, you know, there’s one other thing I would like to add. For any trucking company out there listening, whether you’re an owner-operator or you’re an LLC incorporation, s corp, c corp, whatever you are, I was given advice from an individual that went through bankruptcy about 15 years ago. And this advice cost him 1.5 million dollars and a bankruptcy on this personal credit. The advice that he gave me, and I’m gunna share it with all of your listeners, is before you make any decision, make sure that you have a network of an accountant, a lawyer, and a good spouse. If you can run all of your ideas by your accountant, lawyer, and good spouse, and they agree with it, dude, run for the hills, take it, go all day. If any of them disagree or don’t like your idea, rearrange your proposal, go back get them all to agree to it and then send it. That right there is a 1.5 million dollar and a bankruptcy piece of advice. (laughing)
Troy: I like it! I think that’s so great advice for our listeners and I think they’re all gunna appreciate it. Chuck, thank you so much for joining us. It’s great catching up. I’m sure you’ll be on again. I appreciate everything you’ve been doing for me these couple of months.
Chuck: Yeah, for sure man. I’ll see ya at the ten-year reunion. (laughing)
Troy: For sure! Once again, that’s Chuck Zegley from Navitas Credit. Thanks again, Chuck!
Chuck: Thank you, Troy.
Lenay: Alright, thanks to Chuck for coming on the show. That was awesome. Lots of great info. And good conversation between the two of you. It’s kind of fun to have someone you know on the show, right?
Troy: Yeah! It was really cool catching up. We haven’t seen each other since high school and that’s awhile back at this point.
Lenay: Yeah. That’s awesome. Well, for those out there listening. If you have any questions about the trucking job market right now or you just want to see what kind of jobs are available definitely reach out to us on social media. Check out AllTruckJobs.com as well. There’s lots of trucking jobs listed on there.
Troy: And don’t forget, as always, we really appreciate any reviews on any of the platforms that you’re listening on. Reviews go a long way to help us climb the rankings and reach more listeners and that’s the main goal, right?
Lenay: Absolutely.
Troy: Alright, Lenay. I think that wraps it up. I’m ready to enjoy some summer. I hope you have a good long weekend full of, you know, barbequing…
Lenay: Yeah.
Troy: Fireworks and enjoying the sunshine. Hopefully, the weather is nice too.
Lenay: Yeah, absolutely. You too! Happy 4th of July everyone and thanks for listening.
Troy: Yeah. Thank you. And once again, I’m so co-host Troy Diffenderfer.
Lenay: And I’m your favorite co-host, Lenay Ruhl.
Troy: And this has been Big Rig Banter.
Music – Thanks for tuning into another edition of Big Rig Banter. For your next job check out AllTruckJobs.com, the premier online source for finding the best driver jobs in the country. Browse hundreds of positions by freight or driver type to get back on the road with confidence. Click subscribe to keep the conversations coming until next time on Big Rig Banter.
