There Are Many Options To Finance A Semi Truck
Are you considering the possibility of semi truck financing? If you have ever wanted the financial freedom of owning your own semi-truck, as opposed to working for a trucking company, you might be closer than you think. There are many different options that you can use to finance a semi-truck and make it your own. Owner operators make more money, have better flexibility and more job satisfaction than many contracted truck drivers. Here are a few of the options available to you:
- Dealer Financing- If you are a commercial tractor trailer driver and you are interested in owning your own rig it is important to understand how to go about financing a new truck. Dealer financing is a common way to finance your tractor. Some factors to consider when visiting a dealer include; what type of driver you are, do you drive long or over the road hauling, do you need a specific truck to drive for a specific company, are you looking to move into different freight classes once you have a new truck. Other factors include whether or not you will need a trailer at all. Some companies just want you own a tractor to pull their trierPerhaps the company you want to work for only requires you to be an owner operator of a tractor and not a trailer as you will be hauling their trailers. Aside from the choice of truck and trailer if relevant, semi truck financing is more akin to buying a house than buying a personal automobile. To qualify for semi truck financing, the dealer will want to know standard information such as credit report, contact info and so on. Dealers will also want to know your previous hauling record, how many miles you drive annually, your typical run routes, and of course your annual earnings. All of this is critical information for semi truck financing.Â
- Getting financing using a cosigner- Sometimes when purchasing a tractor it is hard to qualify for your first tractor purchase or to qualify if your credit is bad. A cosigner is an option that may help you secure a loan when you cannot get a loan on your own. A cosigner is a person with the financial means to cover your loan in the event you can no longer pay the loan.
- Purchasing from a private party seller- There are a lot of good reasons to purchase a truck through a private party dealer. Purchasing from a private party seller will often times save you a great deal of money. You can also get semi truck financing from banks even if you are buying private party.
- Putting down a large down payment- If you are looking at semi truck financing and cannot get financing or a cosigner it is a good idea to add a large sum of money as your down payment. Many times financing institutions will look at a loan situation more attentively if they know you want to put a large sum of money down as a large down payment.
- Using additional collateral- If you do not have cash to use as a down payment to finance your new rig you can also use other collateral items. Items such as equity in a home, paid off cars, jewelery will help financial institutions lean more towards financing if they can feel you are committed to buying a tractor by using your personal items to back the loan.
As you can see, there are many different semi truck financing options available to help make your dream a reality, all that you need to do is get a bit creative, and think outside the box. Before you know it, the semi-truck of your dreams will be in your driveway.