What are the Different Steps to Acquire Semi Truck Financing?
Whether you are just launching your business and need a single semi-truck to get started, or if you are an established business looking to expand your fleet of semi-trucks, financing can be a straightforward and easy process if you consider the following steps:
Consider the immediate needs of your business. What type of semi-truck are you looking for? Sometimes the best business decision is to invest cautiously in a more affordable semi-truck while other times it benefits your business to invest in a semi-truck that has more of the latest technologies available. Whether this ends up being a new or used semi-truck depends on the end use and future plans of the vehicle. Will your semi-truck experience heavy use or light use? Will you be traveling over terrain that speeds up the wear and tear of the vehicle? There are many makes, models, and price ranges and the first step is to know what semi-truck or trucks will allow you to continue offering your goods and services on time and with a high profitability.
Know your true purchase power and calculate the total cost of ownership, repairs, maintenance, fuel, fees, insurance, taxes, etc. Think about the amount of capital you have to invest in addition to your cash flow. You must have enough for a down payment and understand that having good credit is a major factor in obtaining competitive semi-truck financing.
Contact a reputable semi-truck financing company and inquire about the best rates and financing terms that they are able to offer you with your available down payment and credit line. It is a good idea to comparison shop and obtain the best incentives possible. Many semi-truck financing firms can tailor the loan to meet your individual needs whether you are an owner-operator, maintaining a fleet, looking to lease, startup your company, or purchase a new or used semi-truck.
Understand the financing terms that are available to you through the semi-truck financing company. If you are leasing vs. purchasing, there will be various lease terms that differ such as having mileage restrictions, wear and tear limitations, and specific down payment, monthly payments, fees and end of lease regulations. When you finance the semi-truck rather than leasing you plan to have the vehicle longer than a couple of years. While you may not be planning to trade up to obtain the latest technology, you will also benefit from tax write offs and incentives for your company. Semi-trucks are meant for a long road life and have an excellent resale value, so there is a potential to earn back some of the value of the semi-truck minus depreciation at a later point in time.
When processing your semi-truck financing application you will need to access several documents and provide them to the financing firm in a timely manner to expedite approval. For example, current driver’s license, tax returns, bank statement, proof of ownership etc. Be sure to ask as many questions as necessary to understand all documents and financing terms before you sign on the dotted line.