First time buyer

Never financed a semi,.. but in most financing situation,.. Most banks wont touch you until your at least 650. And then expect to have at least 30% down and be raped by the interest until your at least 750.

Cash is king,.. always will be.

Hurst

 

I'd just call a dealer and ask for the highlights. Daimler trucks has their own financing options and the guys at the dealer will know what minimum score and money down they'll want.

 

Your Fico score means nothing if you dont have the adequate credit history.

I have been trying to finance a relatively cheap truck through the third party financing companies Schneider uses and Im having no luck. The only offer I got was with an interest rate of 50%. Keep in mind that my Fico is higher than 750 an I was offering more than 30% down payment.

Getting financing an improving your credit are a game. It's hilarious what these guys use as qualifiers in their risk assessments.

Base on my experience here is what most financing companies want to see; I list them in the order that I feel the companies prioritize.

Installment Loan History: All of the good lenders require you to have had a mortgage or car loan. Im guessing they want to use it as collateral.
Minimum 5 year credit history.
Your Fico Score
At least 5 credit lines reporting
Down payment amount.

Those are the minimums requirements to not get bent over and rammed with a commercial payday loan.

Having said that Freightliner and Volvo do in-house financing and can probably finance just about anyone with ok credit.

Do a little research before you go and try to buy a truck. Youre a business first, everything else is a distant second.

 

I was in the same situation when I bought a Schneider glider. Had great credit score, mortgage for 8 years with nothing late, & down payment funds but none of that mattered because this was a business loan.

Got the same horrible offers from schneider lending contacts which wasn't gonna happen and called a few local banks but again, they didn't lend to new businesses. Then I got a call from Russ Darrow Leasing out of Milwaukee and they offered somewhat decent terms relatively speaking, 10% down and 18% for a first time loan and no prepayment penalty after 18 months so I took it. Prob not gonna have it paid off at 18 months but I'll def have it paid off early. Good luck

 

How do you like your glider so far?

Originally that's what I was looking to buy but I couldn't get an offer to finance it. I settled for the cheaper C120 but with the ridiculous interest rates it is also not an option.

Russ Darrow wanted a co-signer which I don't have.

I think I might just get a personal loan through dicover. They pre-approved me at 9.9 percent interest rate and no payback penalty or originating fees.

 

The truck is great mechanically for this first 90k miles I've had it. Only issue was an alternator needed to be replaced but that happens. It's a 58" midroof sleeper so a little short on storage but I make it work. The shorter wheelbase is nice in tight situations though.

9.9% isn't bad at all and with some business experience under your belt you'll prob be able to get approved much easier next time

 

Thats the model I was looking at too. I want to run regional dryvan and for that application the specs are great.


Yeah 9.9% is great but I was really hoping to get a loan under my companies name and FEIN. This way next year when I incorporate or do an LLC the companies credit score can stand on its own without me having to give personal guarantees.

That would be the ideal situation but I dont think it's going to be possible an im just so anxious to get started.

That's great if a bad alternator is all that you had to replace.

How are the tires wearing? From the pictures they seem like the cheap dealer tires that only last a couple of months. Not a deal breaker for me I am just curious

 

I just looked at it. I have a 712 fico and they want 20% down. Interest in the 12s. Or 12% down and 15%interest.

 

Out of curiosity, whos giving you those terms? The dealer or are you in direct contact with the lender?

Generally speaking, a underwriter of paper ( aka the lender ) will review the deal and set the terms. Rarely does he offer variable terms like ok this and that or a little more of this and less of that.

Remember too, everything is negotiable including the interest rate. The lender will give the dealer a "buy rate" for the paper like 36 mos at 8%. Then the dealer tries to get more out of the buyer. A typical upsell tactic.

lemme know.....