Commercial Truck Financing

How to get Commercial Truck Financing

Commercial trucks cost more than private vehicles, much more. So it stands to reason that it may be more difficult to acquire financing for something like an “18-wheeler” than it is for the sedan that sits in your driveway at home.

In normal times, that is true. Commercial vehicles are bigger, cost more to manufacture and are used to transport goods from one place to another. In other words, their use is strictly professional, not private. And, as you probably know, any purchase for a product or service that is related to business or is designed for business or professional use almost always costs more than what one might expect to pay for a similar product that is used for private or non-business purposes.

Commercial Truck FinancingIn fact, a quality or high-end private vehicle can cost $50,000, $60,000, perhaps $75,000 or a little more. A new 18-wheel truck can cost as much as $250,000. That’s a lot of money. And it makes perfectly good sense that it may be difficult for some truckers to acquire financing for a vehicle that costs about a quarter of a million dollars.

So … if you’re a trucker looking to purchase a big rig, how should you go about getting financing for it? To begin, consider getting a used 18-wheeler instead of one that just left the factory. Why … because the economic downturn of the last two years, coupled with rising costs for fuel, has resulted in a glut of near-new (but used or previously-owned) trucks being made available … at prices far below what you would need to pay for a brand new truck.

Obviously, you will find it easier to finance a used truck … simply because it costs less. Additionally, interest rates are currently as low as they have been in many years. Moreover, there are many lenders offering financing for big rigs. The competition among them helps you.

Here’s another benefit. The truck you want to buy will be used for commercial purposes and, as such, is inherently more valuable than a private vehicle. Lenders know that and the knowledge makes them “borrower-friendly.” They’re more than happy to provide a loan to you because they consider it low-risk.

There is, by the way, another benefit that accrues to you automatically when you opt to “buy used” instead of factory-fresh. You are assured significant savings because a used truck costs a lot less than one that is just off the assembly line. And those savings – significant savings – can serve your needs immediately in the form of a larger down payment for the truck you do buy.

When you pay more money up front, you benefit two ways: (1) the loan you require is smaller. That means more affordable monthly payments. (2) Your larger down payment and smaller total loan balance may qualify you for a better – and lower —   interest rate.

Clearly, if you’re in the market for a “big rig,” the best move you can make is to shop for one that is previously-owned. There are many available … some close to new. And you’ll “save a ton of money” in the bargain.