Are you a prime or subprime trucker? Do you need to seek a loan? Are you looking for a reliable lender who can assist you in getting a commercial truck financing deal? Well, don’t lose hope. In these trying times, you can still meet a number of commercial truck lenders who are truly friendly. But you have to realize that a commercial truck costs a big amount of money. That puts you’re a commercial truck lender in a very risky situation. Anyway, here are some guidelines on how you can avail a commercial truck financing deal:
- Brand new versus second hand. Buying a second hand commercial truck is not a bad idea. It is a sensible move, especially if your budget can’t afford a brand new unit. You have to note that the price range for a brand new fully decked out unit (18-wheeler) is between $30,000 and $250,000. Also, you need to hear about the apparent oversupply of second hand commercial trucks. This is mainly attributed to the continuous increase in the price of fuel and the deterioration of the economy in recent years. The glut allows you to get used units at affordable price. Obviously, investing on a brand new commercial truck may not be advisable. Your unit is just going to depreciate severely due to the glut in the second hand truck market. This simply proves that it is definitely better to put your money on a high quality second hand commercial truck.
- Commercial truck lender. Finding a reliable commercial truck lender is critical in getting a good financial deal. If you have a good credit standing (excellent FICO score), meet some of the prime lenders. They are certainly in the best position to offer ideal interest rates since your good credit standing will be highly preferred by top commercial banks. On the other hand, if your credit standing isn’t that “impressive”, you may need to meet a number of lenders. You have to find someone who is “friendly” and who is willing to accommodate your current credit rating. Be careful here. You don’t want your FICO score to go to waste, particularly when you find out that your target lender doesn’t cater to your “classification” as a borrower.
- Documentation and payment. Prepare the required documents and your down payment (on average, at least 20%). You need to submit them in order to set the deal and process your commercial truck loan. Some of the commonly asked documents include a proof of your CDL license, a proof of your hauling contracts (assuring your ability to settle the subsequent payments), and a proof of your FICO score and good credit report.
A good deal can allow you to save a good sum of money. You can allocate
that saving in making a larger down payment or in availing extra
features for your truck (better lights, more advanced navigation system,
fancier sleeper, and the like). Once you get your truck, start working
hard. You have to understand that you are expected to meet your monthly
amortization. Make the most out of your new “investment”.