Commercial Truck Leasing Highlights
Prior to financing a commercial truck some background information can be very useful. For example, factors affecting those with good credit differs from those who have poor credit. Generally speaking, a 15% down payment results in about an 80% success rate in financing for those with decent credit (660 or higher credit score). For those with poor credit some options are available here.
Since credit scenarios vary widely among individuals, this chart provides some useful examples using different credit ratings. This will allow you to compare your specific credit situation to the examples provided. It should be noted that a minimum of two years work experience is usually required for credit requests to be taken seriously.
Vehicle types can also affect financing options. Vocational trucks, like dump trucks, are easier to finance than semi trucks. Some loan services specialize in semi truck financing and others steer away from those type of loans.
Known risk factors for financing include poor credit, new business, low cash reserves and private party purchases. Owner/operators also fair better when they have a fleet as opposed to a single truck. This is because a fleet owner can continue to generate income with a truck in downtime while a single owner must repair the vehicle to continue to earn income.
Vehicle age should also be a consideration prior to seeking financing. Vehicles 10 years and newer are the easiest to finance. Vehicles between 10-15 years old are a little more difficult to finance but usually are supported. Vehicles beyond 15 years old are somewhat more difficult to finance. This is because they tend to breakdown more frequently than newer ones and they are harder to resell, if needed.
There are some instances where financing may be completely unavailable such as; past due child support, recent vehicle repossession and current bankruptcy proceedings. Discharged bankruptcy cases are usually not a barrier to securing financing.
If commercial truck ownership is not for you, companies like Idealease offers some options. Idealease is a safe, cost effective alternative to commercial truck ownership. They offer a responsive, fully integrated truck leasing, rental, fleet service option which includes dedicated maintenance of all vehicles.
Whether you are evaluating a commercial truck purchase or needing repair service to your truck or fleet, Carolina International has what you need. Founded in 1992 we offer medium, heavy and severe service international truck and IC buses. With over 100+ service bays and over $6 million in parts inventory we are here for your needs. Please feel free to contact us.
