Semi-Truck Financing Basics

Buying a semi-truck is no small thing. These vehicles are big and expensive, and while they can net you a lot in profits, you first have to invest money into getting one, and that may be a challenge for a new business owner. This is where financing comes into play. Semi-truck financing can be done regardless of your credit rating and it will help you to get a jump-start on hauling cargo to have the vehicle you need at hand.

Trailers Of Texas in Houston is proud to be your local semi-truck dealer. Read on to learn more about financing basics and how you can get the semi-truck you need, even with poor credit.

1. Put More Money Down Up-Front

It’s best to try to put at least 10% down up-front if you can before you take your semi-truck off the lot. The more money you can put towards your purchase right away, the better, because the more money you can put down on your purchase, the more likely you are to get approved by your lender. Lenders like good credit, but they also like equity, and more money down at the time of purchase equals more equity on your semi-truck.

2. Locate a Co-Signer

If your credit score isn’t as high as you’d like it to be, locate a co-signer who has great credit and a Commercial Driver’s License (CDL). Generally speaking, lenders no longer permit borrowers to use anybody as a co-signer, so that they can help make sure you aren’t scamming anyone. Co-signers with good credit and a CDL will increase the likelihood that your loan request is accepted by many lenders.

3. Add More Collateral

Lenders who are experienced with semi-truck loans are likely to accept other types of collateral in lieu of more money up-front. If you have something that you can use as additional collateral, such as another vehicle, this can help you to get your loan request accepted. Adding more collateral is a flexible means of dealing with poor credit and a lack of equity when it comes to securing a semi-truck loan.

4. Read the Fine Print

Never sign any agreement without reading it cover to cover. You need to know exactly who will be holding the title to your semi-truck while you pay off the loan, and when that title may be transferred. Otherwise, you could wind up in some hot water when you pay off a loan only to learn that you never owned the truck on paper.

5. Work With a Reputable Dealer

Finally, you’re not going to get much of anywhere if you don’t buy from a dealer you can count on, like Trailers of Texas. You’ll want to buy your semi-truck from a licensed dealer who is accountable and provides you with reputable financing deals, rather than some fly-by-night operation that may not be there when things go south.

You’ll also want your dealer who carries their own papers who can permit you to buy from their inventory in a lease-to-own type of agreement, since this option is available to pretty much anyone, even those with low credit.

We hope this guide helps to ease your mind when it comes to your upcoming semi-truck purchase. Ready to see some models and talk about financing options with our staff? Visit us at our location in Houston, Texas, to take a look at our wide selection of new and used semi-trucks for sale. We also provide semi-truck financing options if you’d like to make use of them. Trailers of Texas proudly serves the cities of Katy and The Woodlands, Texas.