It is true that the modern manufacturing and food production sectors in the United States today are enormous. But so is the transportation sector, where trucks, trains, jets, and ships are delivering countless tons of cargo domestically and internationally every single day. Jets can make overnight deliveries and fly over any terrain, while ships handle the bulk of international trade as they sail from port to port around the globe. Meanwhile, semi trucks, such as reefer trucks, are ideal for smaller-scale transport, going to and from factories, warehouses, and retailers. Most carrier companies in the United States are on the smaller side, and they cannot afford jets or trains, but they will have hardworking fleets of trucks on hand. These include specialized truck trailers such as reefer units, but what is a reefer trailer? And how can a carrier company owner find a reefer trailer for sale at the right price? To buy a reefer trailer, the owner may look for new or used units, turn to truck lending companies, and more.
All About Refrigeration Units
A new reefer trailer, and gently used ones bought second-hand, are truck trailers that have one or more air cooler units in them to chill the interior. They may also have insulated walls to maintain that temperature, and the inside temperature may range from a high of 70 degrees to a low of -20 degrees Fahrenheit, depending on need. These reefer units may range from 28 to 53 feet long, and the largest ones may be as tall as 13.5 feet and weigh as much as 44,000 pounds. All of this makes a reefer trailer for sale ideal for allowing a carrier company to start delivering goods for a grocery store or similar clients, such as for carrying cold-sensitive foods. Meat, dairy, frozen packaged food, and more would suffer in an ordinary truck trailer, but they are comfortable in a reefer.
This leads to a robust reefer industry that is continuing to grow, and in the United States alone, some 500,000 reefer trucks are in operation. Around the world, the refrigerated trailer market is expected to grow further, at a CAGR of 4.8% from 2016 to 2022 to reach an estimated valued of $7.65 billion by the year 2022. A small carrier company’s owner can look for a reefer trailer for sale to get into this business, but that means financing it all. Even used reefer trailers may cost a lot, so some borrowing may be involved.
Financing a Reefer Trailer
When a company owner starts looking for a reefer trailer for sale, they may consider new ones, which will be in perfect condition and will match current industry standards, but also may cost quite a bit (prices will vary). Meanwhile, that wholesale customer may look for gently used units, which may be at a discounted price. But before making a purchase, the buyer may want to look over the reefer in person and check it for faults or wear and tear. The buyer might also test the cooling unit to ensure that it can generate and maintain the desired temperatures inside. The tires, wheels, and axles may be looked over as well.
How to afford a reefer trailer for sale? Big banks are often reluctant to lend to small companies, but many specialized lender companies are much more generous with carrier companies like these. The lender will look over the borrower’s personal and business credit scores alike, and they will also check for red flags, such as previous bankruptcies or delinquent loan payments. Good credit scores and a lack of red flags may mean the borrower gets a large percentage (possibly 100%) of the trailer’s value in a loan, and probably at a low interest rate, too. These specialized lenders don’t always turn away borrowers who have poor credit scores, but they may charge higher interest rates and only offer a smaller percentage of the trailer’s value in the loan. Borrowers will also use the trailer itself as collateral, to make the loan more secure and thus more attractive. Finally, the borrower may offer one of their own trucks as collateral for a loan, and get a loan based on a percentage of that truck’s current value. Trucks in good condition may merit larger loans.