dealer financing vs. outside truck financing

Discussion in 'Trucker Taxes and Truck Financing' started by aka1004, Apr 4, 2021.

  1. aka1004

    aka1004 Bobtail Member

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    Apr 4, 2021
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    hello folks.
    i've a company driver for 15 years but ready to make the leap.
    since its my first truck, sba loan will be hard to get, i hear so i was wondering if getting the financing first before heading to dealer would be better or take the dealer financing.
    my credit score is 760 and i tested my situation with commercial truck trader's financing with their pre-approval system and was offered few options but i know a lot of pre-approval doesn't mean anything often.
    if having the financing part taken care of is in fact better way to go, which lender would you recommend ?
    thank you in advance.
    i am looking at 2015-ish sleeper.
     
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  3. Happily Retired

    Happily Retired Road Train Member

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    When I bought my truck, I stayed with my bank. I had a good credit rating, and excellent references, and they knew me, and will stand by you if something happens. The dealer will try their darndest to get that used truck out of their hair, if there's a problem, and you can bet with a 2015, you'll have you're share, the dealer finance will send it directly to collection, then the fun begins. Talk to your bank 1st, see if they think you can swing it, also, you are still putting the cart ahead of the horse. I'd make sure, and the bank may require it, you have a hauling contract all set up, I had to show my bank I was going to haul RR containers, and a projected income. Remember, it's a lot easier buying a truck than getting out of it, trust me. Good luck.
     
  4. slow.rider

    slow.rider Road Train Member

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    A related question: anything wrong with putting in several loan applications, for example, at the dealer as well as at my bank?
     
  5. autopaint

    autopaint Light Load Member

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    Yes, each place you put an app in will run your credit report. Each time lowers your score, and the credit agencies also ding you for too many credit checks in a certain amount of time.

    You said two and several. Two credit reports won't ding your score that much, several credit reports will.
     
  6. xsetra

    xsetra Road Train Member

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    I've heard any reasonable number of applications in a 30 day period was considered as one. If it's for the same purchase.
    SBA is full of cash to hand out. At least ask them.
    Good luck.
     
    slow.rider Thanks this.
  7. slow.rider

    slow.rider Road Train Member

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    I put in an application with them six months ago. Still no decision.
     
  8. aka1004

    aka1004 Bobtail Member

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    Apr 4, 2021
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    thank you for inputs.
    all sba and bank loans i found were for established business only but this will be my first truck.
    it seems like i might be stuck with paying cash or in-house financing or specialty truck lenders that may have high interest which will be acceptable as long as there is no early payment penalty.
    currency finance seems to be everywhere but i hear you don't save on interest by paying early.
     
  9. slow.rider

    slow.rider Road Train Member

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    Lone Mountain might be a possibility.
    How It Works | Lone Mountain Truck Leasing
     
  10. aka1004

    aka1004 Bobtail Member

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    Apr 4, 2021
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    truck I'm looking is 1200 miles away...
    how are those company that goes out to check out the vehicles for you?
    like lemonsqad. it costs like $250 so if they do what they are supposed to do, its not so bad.
    if it checks out, i can go pick up or arrange delivery but i am a little hesitant about buying a used truck with 370k miles on it without getting my hands on it(not that i am a mechanic or anything but still)

    i got a letter of intent and o/o agreement from a company that i can lease to financing is not going to be a problem, it seems.
     
  11. jamespmack

    jamespmack Road Train Member

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    22 years ago, I walked into a Harley dealer. Told them I was interested in this 2 year old low mile Dyna. Asked how I was gonna pay for it. Told him Check. I had the ok from my banker lady. I only needed to call with amount, and write the check. Salesman goes away, comes back and tells me I'm not approved with HD credit. I blew a gasket. They were also a Metric shop back then. 2 sides to building. He found out that I had been buying Honda dirt bike parts, and had a few engines built by them. And in good standing. I have a Harley and 2-3 times a year I stop in there and look around. When asked I tell the story. I tell them I only come in for test drives, and to remind them how they F'ed up. Childish, maybe. Makes me feel good.

    In house financing is never the best option. My bank actually called them to inquire if my credit was checked legally.
     
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