Financing advice/help

In 3rd quarter of 2020. I put 33% down and have a credit score around 800. Got raped with an 18% interest rate because it was my first truck but paid it off in just a few months anyway. Rates are good so if you're getting in now I suggest you run like hell to get whatever you pick up paid off because the equipment market has skyrocketed over the last year.

 

I've heard if you have 0% to out down it's nearly impossible to get a truck right now. That is what I've heard so take it with a grain of salt but I'd suggest calling a few places before making any long trips to visit them in person.

 

Go to a credit union. Everyone else is a shark. If you don’t bank with a credit union find one bank with them for a bit and use their services.

traditional banks like BOA and Wells Fargo are for suckers. Suncoast credit union finances tractors starting at 3%. If they won’t finance the truck you want it’s because it’s too expensive, or you don’t have a large enough net worth/history of income. You don’t need money down, but then you must purchase something below the “bank draft”.

they’re not gonna finance a million dollar land yacht.

 

To be truly honest. If you have 0 down then you have 0 in reserve for breakdown. Don't buy. You are not in the position right now for it. To get in anything from 20-40% down depending on cost and credit score. No commercial credit. Your paying for it with a slim chance of a financing and rape on interest

 

Then you have no business being in business.

I started with $15k cash and $35k loaned - and that was still viewed as sketchy.

 

Went to my local bank, put 20% down…got a loan for the rest at 4.5% interest. Basically a pickup truck payment. But you need extra money set aside for startup fees…if you have 0 to put down it ain’t gonna work. You need money for plates, registration, fuel…just to name a few things.

Started with 21k cash and 28k loan. It worked but it was tight for a bit…

 

I did set aside $60k total ($40k for the truck and $20k for start up operations eg: MC#, UsdDOT#, IFTA? Plates, Insurances etc..) however, with the weekly increase for Truck prices rising I have to wait and see what the new year brings. I'm sure truck prices are still going to stay up. But if the World's markets crash I'm sure better deals will occur in the days ahead. With my credit score above 800 I don't plan on paying more than 8% for my payments.

 

I’ve bought 3 Trucks, and 2 Trailers. All 0 dn. You might have to find a Lease structured Loan. One that you can refinance out of later, after you have a proven track record with revenue, and on time payments. The challenge is figuring the actual cost of the Loan. First and Last pymts dn. along with remaining amount of pymts. It all adds up to a very high interest rate. As long as you can get out of it in a year, it’s not so bad. Read the contract well, whatever Loan you get. Not all loans are structured the same. Simple interest, and no pre payment penalty is best. Pre payment penalty within one year is common. They want to make their money. Depends on what it’s worth to you to put 0 dn. Might still have to come up with cash after one year, to have some equity in the equipment. Look around, lots of cash to be lended right now. Beware, Lease structured Loans aren’t subject to Banking regulations. That’s also why they’re more available.