Semi Truck Financing

     I’ve never bought a semi truck before but I have bought some F150’s and a bunch of cars. I've also been manufacturing, selling, and financing semi trucks for  the last sixteen years. When I go to a car dealership I like to know what kind of financing I can get before I go so I know what to expect and if there is room to negotiate. I like to know how much vehicle I can afford which of course depends on how much monthly payment I can tolerate, how much I might have to put down, and how much loan I qualify for. This is what I do for people now in the trucking industry. If you go to a truck dealership and submit a loan application you will likely (about 90% of the time) only be able to use that approval at that particular dealership. If you find a truck elsewhere you will have to start over and run your credit a few more times possibly. We get you approved with terms that meet your approval and you are prepared to purchase any truck you might find, anywhere in the country. This is buying power. Right now you may not have a choice as to where you are going to buy your truck because inventories are low. If you are new to truck buying you might want to stick to the factory authorized dealership because of the reputation they are trying to protect. There are also many family owned type of dealers who will also take good care of you. But when it comes to financing I recommend staying away from them. They have conglomerate buildings, multiple levels of managers, staff, and even stock holders to pay for in many cases. Us brokers do not have this kind of overhead to meet. It’s that simple. Get your financing squared away first.

     The price of trucks is up currently with little hope for prices to go back to normal anytime soon or ever again, nobody knows. My wife is from Venezuela she tells me prices went up there and never came back down but let’s hope that’s not the case here. Since prices are up right now, if you are financing your truck and you are not providing a big down payment, you need to consider GAP insurance. If your truck is stolen or totaled and you don’t have GAP insurance, you could be left holding the bag with a very large bill to pay your lender. It is wise to at least have your insurance company lined up and talk to them about the current market and coverages. There are other products you may be offered at the time of finance such as roadside assistance, tire insurance, maintenance deals and such. You should read these offers carefully and see if the cost to purchase makes sense. I have seen some good roadside assistance programs and sometimes they can be financed into the truck.

     When you apply for financing the lenders will be looking at three things, your down payment, years of driving, and credit. A “normal” loan will consist of a 20% down payment or say $20,000 on a $100,000 truck, a minimum of TWO years driving experience, and someone who does not have any current delinquencies with maybe a 640+ credit score. If you have current delinquencies like back child support, medical bills, liens, judgments, a recent repo or bankruptcy they will not consider providing a loan unless you have paid the delinquency and/or re-established credit in the case of a repo or bankruptcy. If you have good credit I’ve seen few but some zero down financing. If you have good established commercial credit there is more likely to be about a 10% down payment requirement. If you have under two years of driving experience you will need to have good credit. When I say good credit I mean a house loan or at least a car loan to help. Credit cards won’t help. If you have no credit and less than two years experience it is possible to get financed but you will probably need 40% or more down payment and your interest rate will be less than exciting. Most first time buyers I see will have an interest rate between 10% and 20%. Experienced customers with previous commercial credit may be below 10%.

If you need financing I can be reached at 877-712-2724 or visit our website at truckstopfinance.com