Interest Rates

Discussion in 'Trucker Taxes and Truck Financing' started by BoyWander, Nov 1, 2016.

  1. BoyWander

    BoyWander Road Train Member

    1,338
    1,747
    Jul 22, 2011
    Michigan
    0
    Just wondering what kind of interest rates one can expect on a truck purchase.

    New, used, bad credit, good credit, money down, no money down, purchase or lease, etc.

    Not just for my own information, but for others out there would would like to know what others have experienced.

    As for my own info needs, I'm looking at around a $60k purchase, the least amount down as possible, with excellent credit. Not sure what kind of interest rates are available.
    I bought a 2011 GMC Sierra earlier this year and am paying 2.99% interest on that. I have a feeling interest rates are a bit more for a commercial vehicle than for a personal vehicle purchase.

    Thanks!
     
  2. kaptainkhaos

    kaptainkhaos Bobtail Member

    41
    12
    Oct 8, 2014
    Chetek, WI
    0
    I'm at 18.99% through Peterbilt, that's with bad credit and low down payment. If you have excellent credit, you'll definitely get a better rate, I'd guess around 10%? Trucks generally carry higher interest rates than cars and pickups.
     
    Mann0567 Thanks this.
  3. Gunner75

    Gunner75 Road Train Member

    5,702
    8,961
    Mar 17, 2014
    Jackson Center Ohio
    0
    My personal bank, US bank quoted me at 10 to 15 percent on a business loan of $75k with a mandatory minimum of 20% down at a minimum credit rating of 620. Obviously if I have a higher rating my rates would be better
     
  4. KANSAS TRANSIT

    KANSAS TRANSIT Road Train Member

    3,719
    5,739
    Jul 28, 2011
    Glasco,Ks.
    0
    Last couple of years anywhere between 4.9 and 6.9 on equipment purchases through local independent bank.
     
    Getsinyourblood Thanks this.
  5. DUNE-T

    DUNE-T Road Train Member

    3,348
    5,327
    May 10, 2015
    Detroit, MI
    0
    For the first time borrower and low down payment I would say 15% and up
     
    kaptainkhaos Thanks this.
  6. double yellow

    double yellow Road Train Member

    5,932
    9,811
    Aug 28, 2011
    State of Jefferson
    0
    5-6% equipment financing through the bank I've been using for years. But you won't get that as a new venture. And rates will probably start rising quickly after the election.
     
  7. Ridgeline

    Ridgeline Road Train Member

    11,763
    43,329
    Dec 18, 2011
    Michigan
    0
    Credit ratings mean nothing

    Buying a car is not the same.

    Expect anywhere from 11% to 21% without commercial history.
     
    BoyWander Thanks this.
  8. Scooter Jones

    Scooter Jones Road Train Member

    5,743
    9,162
    Apr 19, 2011
    PNW
    0
    I borrowed 43k on a used truck with 10% down through a local bank last summer.

    My first truck with no business ownership history in trucking. They charged me 5.5% interest.

    I've since purchased a new truck & trailer. Both were financed through the same bank at 5.5%

    It can be done IF your credit is decent. However, it is difficult to do so in most cases with no trucking business tax returns of a couple years and good credit.

    I had to sell myself to the banker and jump through every hoop he put in front of me.
     
  9. 59MackB61

    59MackB61 Light Load Member

    196
    156
    Sep 12, 2012
    0
    I am surprised at that I went to borrow 20k for a truck and they told me and sent a letter that trucking was a prohibited industry and they can't loan money for trucks. I even tried to say it was for equipment. However they will loan me the money as a personal loan not through my business. Needless to say I said f'em I decided it will just save the 20k and buy outright. I have paid cash for my other trucks but this dump truck was at an auction.
    if I could have gotten the business loan it was 6% 20k unsecured personal loan was 8%
     
    Road Killer Thanks this.
  10. diesel drinker

    diesel drinker Road Train Member

    1,131
    1,179
    Apr 10, 2015
    0
    My God, 18.99%!Is this even legal?
     
    Road Killer and KANSAS TRANSIT Thank this.
  • Draft saved Draft deleted