While the current financial climate is more favorable for truckers than some other professions in the logistics industry, many banks are still reluctant to give out loans and financing for owner-operators. Sometimes it is better to get commercial truck financing rather than approaching a lender since the truck itself makes for excellent collateral.
Start by considering the benefits of purchasing a used truck rather than a new model. Since a brand-new, straight off the factory floor eighteen wheeler can cost as much as a quarter million dollars, it represents a major investment for any driver. What's more, a new truck loses tens of thousands of dollars in value the second that it rolls off of the dealer's lot. With the glut in truck purchasing, however, it has never been easier to buy a used eighteen wheeler. Prices are low that the saved money can be used towards a down payment or upgrades for the truck's interior.
Remember the expenses that will prevent you from being able to be pay off large amounts of the truck at once. One of the major concerns for any trucker in any eighteen wheeler is the soaring costs of gasoline, costs that are sure to keep steadily increasing in the near future. The expense of transporting freight makes it difficult from making regular payments towards a larger commercial loan. Start small rather than going for the highest-end option.
Like any other type of loan or insurance, you need to look around at multiple sources in order to get the best rates available on commercial truck financing. Prime lenders will give good interest rates for truckers with quality credit. Remember that lenders are always looking for customers with good credit, so do not be shy about refusing offers. Those whose credit is less than stellar, on the other hand, should check around with different financing companies. Since sub-prime loans also apply to vehicle payments, you can apply for one to pay off your trucks financing.
Prepare everything you need for commercial truck financing so that you will have documents on hand for the final approval. You will need a down payment that can be anywhere between 10 and 20%, so the less expensive the eighteen-wheeler, the lower the down payment will be. Bring your license and proof of hauling contracts so that the lender knows that this enterprise will make money. While lenders can directly access your credit score, it never hurts to bring along a hard copy.
- Guest Writer
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