By looking for a lender who specializes in commercial truck financing, it is possible for both prime and subprime truckers to get a loan. Many commercial truck lenders are borrower-friendly even in this economy. Because the commercial truck is a valuable collateral, there is little risk of loss for the lender. In just a few steps, you can get commercial truck financing and start making money on the road as a trucker.
Consider buying a used commercial truck or semi truck instead of a new one. The cost for a new commercial truck starts from $30000 up to $250000 for a fully decked out 18-wheeler.
Because of rising fuel prices and the bad economy in the last few years, there is a glut in used commercial trucks, which means very good prices for buying used. On the other hand, if you buy new, the depreciation on the truck will be more severe due to the soft used truck market. This means it's much better to buy a high quality used rig.
The money that is saved from buying used can go towards a bigger down payment or put in extra features such as a fancier sleeper, better lights, a high tech navigation system, showers, and other features that make your home away from home better.
Consider getting a vehicle that's good enough to drive around for days instead of a top-of-the-line truck.
This will help you lower the amount you need to request to the commercial truck lender. Although you will be living in this truck, try to keep your purchase price low. Fuel prices could go very high which will make a larger loan very difficult to maintain.
Inspect any commercial truck or semi truck you are going to buy. Make sure everything is in working order. You do not want to foot a repair bill shortly after purchase. Although you don't need the fanciest equipment, you do need the highest quality equipment to avoid breakdowns that will greatly reduce the amount of money you make on hauls.
Look for an appropriate commercial truck lender.
Those with good credit should shop around for the best rates from prime lenders. Shop around for the best interest rates, because the collateral is valuable and your high FICO score is highly desired by all banks.
Those with bad credit or not-so-good credit should look at many different commercial truck finance companies and try to determine whether they're sub-prime borrower friendly. It's important to look at lenders carefully because you do not want to waste a FICO-lowering credit inquiry on a prime lender who doesn't cater to sub-prime borrowers. In short, sub-prime borrowers need to stick only with sub-prime lenders or they're wasting their time.
Assemble documents and down payment needed to seal the deal on the commercial truck loan. Typical items needed include:
- 20% down payment (a cheaper truck will reduce the dollar amount of this)
- proof of CDL license
- proof of contracts for hauling or other proof of ability to make money
- good credit report and FICO score
Sign on the dotted line and start making money on the road so you can pay back your commercial truck financing. Congratulations!