Small Fleet Financing: Why Buying Trucks Stops Making Sense

Small trucking fleets are shifting away from purchasing new or used trucks and instead turning to short-term repair financing, according to Dave Gilbert, CEO of National Funding. The trend is driven by rising used truck prices, fuel costs, insurance, and maintenance bills, which make buying new or used equipment financially unattractive for many small carriers.

With used truck values elevated and new trucks carrying additional fees, small fleets are prioritizing maintaining their existing equipment instead of expanding their fleet. National Funding is seeing a surge in demand for shorter-duration repair loans, such as 60-, 90-, and 180-day bridge loans, rather than the longer-term equipment financing that was common in past expansion cycles.

While National Funding typically offers three- to five-year terms for used trucks and longer on new equipment, demand for these products is contracting. Repair financing has become the primary request from small fleet customers. The qualification process involves a one-page application and bank cash-flow data. Gilbert advises small carriers to be cautious about expanding without confirming margin and to scrutinize financing contracts and verify freight opportunities before taking on new debt.

He also highlights the use of AI tools, like Claude, to help smaller operators stress-test financial assumptions before approaching a lender. Regional factors, such as AI data center construction corridors and potential winter weather volatility on the East Coast, can impact cash flow for small fleets. Confidence remains a universal headwind, with managing the company financially being the most critical aspect for liquidity and cash reserves.