Should You Apply for a Loan to Buy a Truck?

Should You Apply for a Loan to Buy a Truck?

If you’ve been in any way involved in an automotive-powered business until now, you do know that trucks, be they semi or pickups, are no small investment. Purchasing your own can turn out to be costly enough to put you off—or, worse still, drive you out of the trucking business. The top alternatives in this scenario are to lease a small truck, or take out a loan toward purchasing your own car.

While leases might seem the safer alternative, since the monthly payments are usually lower, and also cover any repair and maintenance costs, loans would qualify as more of a long-term solution. True, the vehicle will not be under your ownership until you have completed all the payments, but we believe it is worth the wait, for precisely the reasons outlined in what follows. Yes, a loan is a loan is a loan, and the current state of the economy might deter you from considering credit, but the boons of commercial truck financing surpass these considerations.

commercial truck financing

  • You don’t necessarily need to make a down-payment on the loan for your next semi-truck or pick-up.
  • It’s your vehicle, you’re paying for it, instead of leasing it, so you can alter it whichever way you like.
  • You’re potentially eligible for a cheaper professional car insurance policy when the truck you use to run your business with belongs to you, rather than being leased.
  • A skilled accountant can help you deduct the costs of your loan and the potential depreciation costs that the vehicle will require out of your taxes. You can save significant amounts of money this way.

To boot, applying for such a loan does not entail massive amounts of paperwork and documentation, nor extended waits. You will need to make proof of owning a CDL license, having a decent credit score and a positive FICO rating, as well as proof you have a regular source of income, which will allow you to keep up with the monthly payments. Also, bear in mind that, while some lenders do grant loans for used vehicles, many stipulate that the truck you will be purchasing should not be older than five years. Additionally, it helps to have a CDL license for longer than two years, since more experienced drivers are better scored for their applications. Should you be considering an online lender, make sure they are offering sufficient means for protecting your privacy—you definitely don’t want your personal data to end up being used by a third party.

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