Questions about buying a hauler

[Sciatic nerve]

When teams are looking to a purchase a 5150/S&S style hauler, how are the ways they go about doing it? Maybe I'm wrong but are all teams shelling out the 2-300,000 in cash for these or are there financing companies that deal with such an expense. I see where if you bought new, you could probably finance through said company you bought through, but when scrolling racing junk and seeing used rigs in excess of 250k, we were just curious the avenues one might travel to make such a purchase being used and all. I constantly read and see where drivers complain of the travel costs, yet the 4000 a month payment wouldn't seem to help. Also what kind of insurance must you carry to drive down the road with one of these pieces and haul another couple hundred thousand dollars worth of really uninsured racing equipment. I was always under assumption that you can lease a new one and basically use the lease for a write off for one of your companies but used ones seem like a different animal in terms of lease and tax breaks. Always wanted to ask this so any help would be appreciated.

[Krooser]

Call the trailer manufacturers and they will fill you in on lease and purchase options. Featherlite would be a good first call.

Then call your ACCOUNTANT not a bookkeeper. You need professional advice to deal with this stuff.

When you lease you can deduct the lease payment right off the top. If you own the equipment you have a depreciation schedule you have to follow. Sometimes you can use a faster depreciation schedule if you meet the tax guidelines.

You can lease or purchase new and used equipment.

K&K Insurance in Ft. Wayne can answer your insurance questions. They are the largest company insuring race tracks. I believe they will insure your equipment and the contents. Some trucking related insurance brokers may also be able to help but I'd stick with a motor sports specialist since they understand the business better and will often have a better price. Naughton Insurance may also be able to help you.

You will also need a DOT# from the Feds… many states require it for any vehicle in excess of 10,000#'s GVW. Not sure how a motorhome plate would be handled… never did that deal. If you pull the trailer with a truck you become a trucking company and must follow all DOT rules and regulations… hours of service, logs, etc. Not pretty…

http://www.naughtoninsurance.com/serv_motorsport.html

http://www.kandkinsurance.com/Pages/Home.aspx

http://www.featherlitespecialty.com

[formercrewguy]

Most teams lease.

[george w]

Whatever advice you go with dont use liteys he knows nothing .......

[Latemodel333]

You will also need a DOT# from the Feds… many states require it for any vehicle in excess of 10,000#'s GVW. Not sure how a motorhome plate would be handled… never did that deal. If you pull the trailer with a truck you become a trucking company and must follow all DOT rules and regulations… hours of service, logs, etc. Not pretty…
[/url]

99% of teams register the vehicles as motorhomes, thus no DOT and all the bs that goes along with that, they also insure them as such. The trailer you insure the contents as a value not what it is, you should still keep an inventory to prove your loss but it does not have to be specific.

[Sciatic nerve]

So then, if we find a good used unit on racing junk for 200gs, and you have the ability to handle the payment. Who then lends this kind of money for an RV. Cant imagine these things hold a book value worthy of money being loaned. Is it seriously easier to buy a 200,000 rig then it is a home? Especially if the rig is netting you zero profit. These questions are ridiculous, but Ive been in business and racing for a long time, and never seemed to understand how Joe Blow comes wheeling in with one of these.

[GRT32]

There used to be something about registering these rigs in montana

[GRT24]

People get an address in Montana due to the fact of no sales tax or vehicle registration tax. I think some states have a 6 to 10 percent registration tax towards your tag, title, and registration. So for example if your charged 6 percent to register your rv or motorhome your looking at 10 to 15 thousand dollars extra to get a tag and title.

[goincircles]

When teams are looking to a purchase a 5150/S&S style hauler, how are the ways they go about doing it? Maybe I'm wrong but are all teams shelling out the 2-300,000 in cash for these or are there financing companies that deal with such an expense. I see where if you bought new, you could probably finance through said company you bought through, but when scrolling racing junk and seeing used rigs in excess of 250k, we were just curious the avenues one might travel to make such a purchase being used and all. I constantly read and see where drivers complain of the travel costs, yet the 4000 a month payment wouldn't seem to help. Also what kind of insurance must you carry to drive down the road with one of these pieces and haul another couple hundred thousand dollars worth of really uninsured racing equipment. I was always under assumption that you can lease a new one and basically use the lease for a write off for one of your companies but used ones seem like a different animal in terms of lease and tax breaks. Always wanted to ask this so any help would be appreciated.
Full time race teams use the hauler for their shop on the road and their 2nd home If you dont have one its hard to compete out on the road.

[RoundNrOUND]

For a traveling team not to have a rig like we are talking about it is impossible to have everything you will need. I appreciate some of you saying that these fancy rigs don't win races, but, in reality they kind of do in a lot of cases. Do you realize how many spare parts, motors, cars, tires, wheels ect that it takes to go run one of these series???? I bet 90% of you don't. Those rigs make it possible to be able to do what these guys do, it's not all for luxury.