Truck financing

Daimler Chrysler for freight liners paccar. Financial for Pete and k w New trucks only I think used truck ,check out bmo.harris

 

Bmo Harris was a high interest rate for me. But I was a first time buyer. I had excellent credit.

 

Hey guys. Here's my $0.02. This applies to Canada only as I'm familiar with that market.

The regular Canadian banks are frustrating to deal with at the best of times. They traditionally want larger down payments and more security (lien on your house) and possibly want a co-signor if possible. All this to possibly get a lower rate. And even that isn't a guarantee as they also like to have various Admin Fees, closing costs and other assorted charges that adds costs to the overall number.

And when things go bad, they will be the first ones to bail on you. They can call your loan due at any time, even if you're not past due. They usually give to 30 days to arrange replacement financing.

For larger fleets, they insist on meeting several critical criteria to maintain a relationship. This includes meeting minimum cash flow coverages, Debt to Equity ratios, EBITDA (too complex to explain in a forum) and whatever flavour of the month ratio they want to use. If you happen to fail at any of these ratios - your interest rate will take a sharp increase as they deem you to be high risk. Then you will have to report to their Special Accounts Department (basically Purgatory) on a monthly basis in order for them to review your financials. At your cost.

Alternatively, there are other commercial lenders out there. You can deal with them direct and your happiness will depend if you have a great local rep. Used to be a pretty secure thing however that marketplace has changed as several have sold out and are out of the industry. Another problem is that you can quickly tap out at one lending source so then you have to find a second guy anyway. Or a third. And if the company says no, you will have to move on anyway.

Dealing with a manufacturer derived finance company is pretty decent however you are at the mercy of the Finance Department at your dealership. They will try everything to maximize their profits and may not have your best interest in mind. If you happen to stick handle your way through the Finance Department reasonably, you are left with being just a number to those companies.

Lastly there is the independent finance broker. Some are really good - to the point whereas they can offer great rate AND service. The good ones keep in contact with their clientele as its easier to keep a customer happy than it is to find another one. A good broker will keep an eye on the market and place deals that is ideal for the customer both now and during the term of the deal. Many of these are also a great source in locating and selling equipment. And will have extended hours that would best suit the customer.
The problem in this market is that there are a lot of really bad brokers. They're in it for the quick buck and do not care about anything else other than their wallet. Most will mislead you on rates, payments, residuals and anything else 'to get the deal'.

I have been financing heavy equipment since 1988. Worked at a large bank, at a manufacturer's finance company and also as an independent broker. I prefer the broker side as I have several different lenders at my disposal. This gives me lots of flexibility to place deals and to be a complete one stop shop for my customers.

Sorry for the long winded post. I really enjoy being in this marketplace and want to inform as many people as possible.

 

We tried Sully and it was a joke,they wouldnt respond to any of our phone calls and in the end they wanted 50% down.With 50% we would have bought a truck with cash.Axle Lending is who we went with(had bad credit).They were the most responsive and we got our KW the next week,very quick