Semi Truck Financing
Now that you’ve decided to buy a semi truck (or maybe you want a dump truck or some kind of specialty truck) don’t just hurry off and buy one without understanding your options for financing the purchase.
Just as you wouldn’t cross the country in your new semi without having a plan laid out about which route you’ll take, you also shouldn’t just run into the place of purchase without a set plan about semi truck financing.
Most places that sell semi trucks offer financing. This enables you to drive off of the lot the same day you purchase. You might pay heavily for this convenience though because on-site financing companies usually can’t offer you the best financing arrangement available to you even if it is the best that that specific company can offer.
Go to several banks before hand and see what kind of interest rates they can offer you first. If you have a banking relationship already, then you have an edge that might save you a lot of money and enable you to have an easier approval process.
When it comes to financing, your credit score can make or break you. Hopefully you have good credit already, but if not, then you’ll need to work on that first.
Also, keep in mind that you will need insurance on your truck. Be smart and plan for this in your budget. No matter where you obtain financing for your semi and trailer, you will most likely need to provide proof of insurance; so be prepared.
There are some unique payment plans that may look good on the surface but could end up costing you a lot more money than a normal monthly fixed loan. Ask for clarification about anything in the terms of your financing that you do not understand. The only thing worse than asking a stupid question is moving forward without receiving an answer to your “stupid” question. Understand what you are signing before you pull out your John Hancock!