Four Tips For Getting Semi Truck Financing

Making the decision to move from working for a trucking company to being an owner/operator is an exciting one. Not only will you have the opportunity to earn more money for you and your family, but you can set your own hours, choose your own clients and manage your own expenses. However, becoming an owner/operator depends on being able to finance your own truck. Since the cost of a new semi truck can exceed $100,000, securing financing is an essential step in becoming an independent trucker.

Tips for securing financing for your semi truck

1. Consider a used truck. Like other types of vehicles, a new semi truck loses a considerable amount of its value the moment you drive it off of the lot. You'll avoid that big hit in depreciation if you opt for a previously-owned semi instead of a brand new model.

2. Think in terms of total price, not monthly payments. While a low monthly payment may seem attractive and within your budget, it's important to ask about the total price of the truck, fees and interest. A low monthly payment could be an indication of a long loan period.

3. Establish your business before you approach a lender. Most lenders will be more apt to approve your financing if they see that you have a solid business plan for your trucking business. That means outlining your marketing and business plan in writing as well as getting the necessary business licenses and insurance before you start shopping. The good news is that trucking loans are more likely to be approved than many other types of small business loans, since the truck can be used a collateral.

4. Consider a variety of lenders. While the dealership may be the easier way to obtain financing for your new semi truck, it may not always be the best choice financially. It's always a good idea to check out a variety of financing options before signing a contract, just as you would with a home loan or personal loan.

Becoming an independent business person with your own truck, your own schedule and your own clients doesn't have to be an impossible dream. Increase the chances of securing a semi truck loan by getting your necessary business paperwork and documents in order before you start shopping for a truck, considering a previously-owned truck instead of a new model, and shopping in terms of total price, not just monthly payments. Talk with a company like Arrow Truck Sales for more information.

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