How to Finance Used Heavy Trucks

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Published: 08th August 2012
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When youíre in business for yourself and your used heavy truck breaks down, it can be devastating. Even just the thought of the costs involved can send shivers down any truckerís spine. If youíre lucky, youíre looking at a hefty repair bill, but if the scales arenít so tipped in your favor? Well, youíll find yourself perusing the used heavy trucks market. Youíd probably rather have a root canal, but you have no other choice. Heavy trucks are a part of your business and without one that works, you canít make money. This presents a tricky situation for many truckers, because theyíre not able to buy another truck free and clear when the need arises. Luckily, there are a few financing options for you to consider so that you can avoid having to plunk down your life savings shopping for used heavy trucks. Here are some of the financing options youíll want to look into before you commit.

Buy and borrow from a major corporation
Many used truck dealers offer in-house financing at a fixed rate. This is especially true if you buy from a large corporation like Peterbult, Volvo, or Mack. Thatís right; all three of those companies sell new and used heavy trucks. This may not be your best bet because interest rates are likely to be higher than if you were to get a loan, but if you have good credit and youíre in a hurry, itís definitely a good option, and you can beat it in terms of convenience.

Look for zero down payment loans
Oftentimes, smaller dealers will partner with lenders to offer their heavy trucks with zero down payment required. They do this because they want to entice you to buy that Volvo semi from them instead of going directly to the manufacturer. Although this is a great deal for someone who is strapped for cash, be sure to read the fine print. You may end up paying a lot more over time in exchange for driving the truck off the lot for free. Weigh the pros and cons of this deal carefully.

Consider low down payment loans
If you canít find any zero down payment deals, or if theyíre really not good deals for you, look for low down payment loans. Usually zero down payment loans are only available to those with the best credit, but lenders are a little more flexible on the low down payment ones. Youíll also find these at the dealer, so when you go in, first ask about zero and then ask about low down payment options. Then, you can compare the two and choose which is right for you.

Opt for bank or private lender loans
If you have really good credit, you may be able to get a better rate from the bank or a private lender than you would from the dealer or manufacturer. Interest rates for used heavy trucks can be high, so youíll want to save every point you possibly can. Just keep in mind that your approval amount will be directly related to your income and credit score, and banks are less likely to give out large-sum loans to someone with poor credit. If you know someone with money to spare, you may consider asking her for a private loan. Expect to pay interest, but itíll probably be lower than you would get from the bank, dealer or manufacturer.
When you unexpectedly find yourself in the market for used heavy trucks, the process can be overwhelming. Not only do you have to find one for the right price as quickly as possible, but you have to find a way to foot the bill as well. It can be daunting to say the least, but by investigating the various forms of financing listed above, you can get back on track in no time.

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