Want to buy a semi-truck of your own? The trucks are more expensive than other vehicles, so doing as much research before working with a lender will be smart.
Discussed below are all the points you’ll have to consider. Read ahead.
Your credit score will play a major role in whether your loan gets approved or not. You need a good credit score, as this will tell the financing company that you’re a reliable person to lend to. A lot of the time, your credit score affects the interest you’ll have to pay too.
If your score is not that great, you can improve it by paying any debts you have regularly.
Have you ever filed for bankruptcy? This won’t affect your credit, but financers are weary of people who have filed for bankruptcy as they might do it again.
Let’s say you have good credit and end up getting approved for the truck financing. The thing is, you won’t receive the vehicle’s complete asking price. Most finance companies will only grant around 70-80% of the asking price. Ask yourself how you will be getting the rest. If you can’t tap into your savings, you might have to borrow from friends and family.
Make sure you are even eligible for financing from the lender. They may only accept applicants who make a certain income and have been at their job for a specific number of years. Go through all the lenders available, as you should be able to find at least one that you’ll be eligible to apply for.
Don’t be afraid to look for financing houses that are out of town too.For example, if you’re in Redland, looking for truck loans Brisbane would be smarter as the lenders in the area are more affordable and lenient with who can apply.
Age of Truck
Although you might not think it, the age of the semi-truck you’re interested in will affect your chances of getting approved. Most lenders only accept applications for people who want to buy trucks that were made in the last 5-10 years. This is as older options are more likely to break down, and they won’t be equipped with the latest equipment, so they wouldn’t be safe.
How long you’ve had your Commercial Driver’s License affects whether your truck’s financing would be approved or not. Most lenders only approve people who have had their CDL for at least 3 years, and there needs to be verified proof of this.
Considering everything that was talked about, what do you think? One of the most important points to consider is your credit score. Getting approved for the financing means that you’ll need a good credit score. Make sure that you do your research on the lenders near you too, as some of them may charge higher interest rates than others. Of course, you won’t receive the complete asking price. The bank or finance company will only grant 70-80%, so you’ll have to find the rest.