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Commercial Truck Financing Advice

When deciding to purchase a commercial truck, financing it may be your best option. New trucks can cost $80,000-$150,000 each, which may be out of the reach of most operators. If this is the case, then loan financing may be your preferred solution. Before seeking financial arrangements some basic loan guidance will be helpful.

Individual credit habits will affect loan applicants differently. Persons with decent credit, say a credit score of 660 or greater, usually are able to find financing. On average, a 15% down payment usually translates to an 80% loan success for those with decent credit, although sometimes lower down payments can be found.

For those with poor or no credit some alternative options may be found here. These options may also benefit those with a new business, low cash reserves or those wishing to purchase older vehicles. Some of these circumstances have been known to make financing more cumbersome.

Vehicle age should also be evaluated prior to financing. Vehicles 10 years old and newer have little trouble finding financing. Trucks 10-15 years old are slightly more difficult to finance but usually do find financial backing. However, trucks older than 15 years are more prone to breakdowns and are harder to resell so financing them can be difficult.

Vehicle types can also affect financing options. Vocational trucks, like dump trucks, are more easy to finance than semi trucks. Some institutions will refuse to finance semi trucks while others specialize in these types of loans.

Fleet operators are also preferred over single truck operators when seeking financing. If a single truck owner has any vehicle downtime he is unable to earn until his truck is repaired while the fleet owner can still generate income with his remaining trucks, if one is down for repair. Financial institutions have been known to use this as a determining factor when considering loans. 

Past due child support, current bankruptcy or recent vehicle repossession can all be red flags preventing you from securing financing. Discharged bankruptcy generally is not an obstacle to finding adequate financing.

So when you're ready to leap into the trucking business National Truck & Equipment Sales has you covered. Whether it's financing your new truck, sales, parts, service or repair we can help.


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