If you have bad credit and want to own or lease your own truck you’ll be glad to know that it’s entirely possible even it you’ve filed for bankruptcy. You’ll probably have to pay a higher interest rate than someone with good credit. Also, you may have to pay a larger down payment. The terms of your contract will depend upon the requirements of the lender and your specific circumstances. Nevertheless, there are a variety of commercial truck financing options available from commercial lenders.
Truck drivers can lease commercial vehicles through the trucking company they they work for. However, buying or leasing a commercial truck through an outside agency will give you control over your future. Some trucking company lease purchase programs are successful. Unfortunately, many of them are actually a scam as they are deliberately designed to fail. Leasing your commercial vehicle through an outside lenders give you control over your commercial vehicle.
Commercial loan lenders have specific requirements for commercial loan approvals. Additionally, obtaining commercial vehicle financing could depend upon whether you are buying a truck from a private owner or a dealer. Also, the lender will take into consideration whether you will be leasing or buying a new or used truck. Furthermore, it could depend upon whether you will be working for a trucking company or starting your own trucking business.
I suggest that you check with banks or finance companies to determine available options and requirements before you start shopping for your commercial truck. You could possibly pre-qualify and get a commercial finance loan commitment prior to shopping for your truck. The benefits of pre-qualifying will enable you to know in advance the amount of funds the lender is willing to loan plus your down payment requirement. Your down payment will be based on your credit history plus the price and type of commercial truck you intend to purchase or lease.
Most commercial lenders offering commercial truck financing will finance both new and used commercial trucks. Although some commercial lenders prefer to finance commercial trucks purchased from dealers rather than those purchased from private parties. Whether you want to lease or purchase new commercial trucks or used commercial trucks for sale make sure the lender you select offers the appropriate financing.
If you have good credit it a good idea to check with your local banks or credit unions especially if you have a relationship with any of them. If you have challenged credit it’s a good idea to check with a commercial finance company that offers credit for those with all types of credit histories. Commercial finance companies are accustomed to working with borrowers that have various types of credit. Frequently,they can make quick decisions. Oftentimes, if they can’t make a loan at that time they may tell you what you need to do to enable you to receive a commitment for future commercial loan approval. For example, they may tell you how to improve your credit score and to reapply in six to twelve months.
I suggest that you submit only one application at a time. Get as much information as you can concerning the lenders reputation because you want to be sure you are dealing with a good company. Also, determine the types of commercial loans the company offers plus their income and credit requirements, etc. prior to actually submitting an application. The reason is because each time you apply for credit an inquiry shows up on your credit report.
It’s a good idea get a copy of your own credit report and credit score prior to to take with you prior to submitting an application. If the lender looks at it and says they definitely can’t make a loan at this time, there is no need to submit an official application. If it’s okay the lender will order an official credit report. if your initial application is turned down at one lender you can certainly apply to a different company. However, don’t apply to more than a few. This is because too many inquiries can actually lower your credit score. It’s important to do your research prior to going shopping for either new or used commercial vehicles.