Best Truck Financing?

If traditional financing is not viable then check into peer to peer lending. I have heard it mentioned from time time on radio programs.

 

When I bought my truck seven years ago the biggest problem I had was getting financing for it. The bank lenders were happy enough with my credit score, but it was the lack of experience in trucking that got me turned down. I was able to find a local equipment leasing company (Dolsen Leasing) that did the finance for it.

So if your bank turns you down, try a leasing company.

 

http://www.nastc.com/

They have some affiliate lenders familiar with trucking, and financing look under the financial accounting menu.

 

I would try conventional bank financing first. Then try finance companies and leasing companies.

The best way is to purchase from a dealer and he will have multiple lending sources. If you don't want to do that, maybe go in look at some trucks and get some credit applications. Then contact the companies personally that you got the credit applications to.

The big problem will come with equipment age. Most lenders will have an age limit that may not be conducive to purchasing older equipment. I haven't checked this in-depth but one place indicated no older than seven years. My gut tells me 7 -10 years will be the limit.

It will be easier to get an older truck financed if you purchase it from a dealer who has a relationship with the lender. Sometimes they offer recourse financing which means the dealer takes it back not the lender if you don't pay. This type of financing is easier to get.

Last but not least. Be prepared to show tax returns to prove income for past operations. If leased to a company they will want proof of this. Many may require a business plan. I wouldn't think of pursing financing for any business without a business plan. If you are a startup, your chances of securing funding are very slim.


There is a lot of good reading here:

http://www.thetruckersreport.com/truckingindustryforum/truck-trailer-financing/

 

Just curious but in the medium duty truck your looking at what kind of motor does it have and everything? I am just wondering because I would think that maybe a single axle class 8 would be a better option. Sorry to be off topic but I was just wondering. The thing I have always thought about medium duty trucks is to low of power and to much gear.

 

Navistar has come through for us with fair interest rates in our last 2 purchases: in '07 for a 2007 Chapparal and then in April 2010 for a 2007 Pete. I believe they will preapprove a dollar amount if you qualify. Good luck!

 

Check your local credit unions also..

Mine will do up to 30k (based on your credit score) on a personal loan not commercial loan....Thats nice because you don't have to have a business plan and all that other stuff associated with a commercial loan....just a thought

 

You are usually better off dealing with your local lenders, when possible. If that isn't an option you could try Paccar, Navistar and Chrysler Credit. All three do financing on equipment. There are a number of leasing companies who do equipment financing. You pay a down payment and then make lease payments. At the end of the lease you own the equipment. Some of the leasing companies only do deals with companies who are in their state or region. Some of them only work with dealers.