One of the biggest risks of buying a commercial truck is depreciation. Once you’ve purchased your vehicle, it will lose value over time as new models are released and customers begin to favor them. If you were to sell your truck in a few years, it would be worth less than what you paid.
To protect yourself from this risk, we recommend that you finance the purchase instead of paying cash upfront. When your business sells its trucks or needs money for other purposes, it can still return on investment by selling off its financed vehicles at an auction or through online marketplaces. The other advantage of truck finance deals is that there is no need to put down such a large down payment which means more cash flow is available throughout the year.
Who Finances Commercial Trucks?
Commercial truck financing can be obtained from banks, credit unions, and online lenders. Some private lenders also provide this type of financing. Factoring companies are another source for commercial truck financing, while dealerships may also offer loans to their customers.
What Makes a Good Candidate for Commercial Truck Financing?
To be eligible for commercial truck financing, you must:
- Have a credit score
- Have been in business for at least two years
- Have a history of financial responsibility and good credit that shows you can afford to make payments on time.
What Kind of Commercial Trucks Can be Financed?
As the name suggests, a commercial truck is used for commercial purposes. This can include delivery trucks, tractor-trailers, dump trucks, and more. These vehicles are often bigger than your average passenger car and have higher capacities for cargo. Therefore, they require more money to purchase and maintain them due to the increased costs associated with their size and weight capacity.
Because of this, you must know precisely what type of vehicle you’re financing before committing any money toward it, especially if you want to avoid getting a bad deal on your loan or being unable to get approved.
Can You Finance a Used Commercial Truck?
You can finance a used commercial truck, but it might be more difficult to qualify for financing. You may need to put down more money, and the cost of financing could be higher than for a new vehicle. In addition, you’ll have less flexibility when deciding what kind of truck you want.
How Does Credit Impact your Odds of Getting Financing for a Commercial Truck?
Credit is an essential factor in your financing application. A high credit score shows that you’ve been responsible with your money. This will make it easier for the lender to approve your loan. If you have a lower credit score, it could mean that the truck dealer has to charge you a higher interest rate on their loans.
Finally, financing can be an affordable way to get the commercial truck that your business needs. Whether you’re starting a new business or have been in operation for years, financing can help you get the right truck for your business.