by Lost Tulsa
5 Ways to Finance a Used Semi Truck
Semi trailer trucks, or semi trucks for short, have proven to be very versatile vehicles, with a multitude of uses besides transporting cargo. Since there are now semi truck manufacturers that produce different types of beds or attachments, you can now make use of one semi to do tons of tasks, and can be a great business venture.
Having a used semi truck can be an excellent investment, especially if your business requires you to have a reliable mode of transport for inventory, machinery, and others. If you are considering buying a used semi truck and setting up your own trucking business, there are several ways for you to go about it. Below are five ways to finance a used semi truck, hopefully they’ll help you out.
1. In-house financing. Many used semi truck dealers will offer you in-house financing at a fixed rate. For example, companies like Volvo, Mack, Peterbilt, and others sell brand new semi trucks, but also offer used ones for sale. Since they dictate the price, they also decide on your interest rate, which is likely to be fixed already. You then have to determine a flexible payment term.
2. Is there a zero down payment scheme? Yes, there are many private sellers of used heavy equipment and semi trucks that provide no down payment or zero down payment options for clients with reliable credit. Usually a credit score of 650 or more is needed, so have your records on hand.
3. Finding low down payment terms. Semi truck prices vary depending on the model and year it was purchased. For clients who do not have a high credit rating, it still possible to get low down payment plans from sellers. Some terms may require a 20% or as much as 30% down payment, depending on the qualifications of the buyer.
4. You can also opt to get a loan. Financing a used semi truck can be done through a bank or private lender, so you can get to pay your seller the full amount, then worry about paying your lender on a monthly basis. Loans from banks also have a fixed interest rate, and approval for amount is dependent on the credit score of the borrower.
5. Used truck auctions are also a smart way to get a used semi truck. You can check out sites online for announcements and inventories of available semi trucks up for auction in your area.