Truck Financing Tips From Trucker to Trucker

There are a few lucky stiffs out there who can plunk down a fistful of cash when they decide to buy a new or used semi truck or trailer, but most of us working stiffs will have to finance or lease any addition to our fleet. While leasing has its advantages, financing is your best route if you want to someday own the vehicle. Financing a semi truck or trailer isn't that different from financing your family car, but there are a few things you should do to make sure your purchase goes through without a hitch.

• Contact your bank first. Many sellers offer onsite financing and may do a little arm-twisting to encourage you to sign on the dotted line. While it's tempting to sign up for the seller's financing and drive that shiny new truck out of the lot the same day, onsite financing may not give you the best deal. Talk to your bank and see what they can offer before you sit down with the truck salesman. Particularly if you have a longstanding relationship with your bank, they may offer a lower interest rate or faster approval process. If you know what your bank will offer, you're in a better position to evaluate the seller's financing offer and negotiate terms.
• Know your credit worthiness. The financing deal you can cut and the interest rate you'll have to pay will be based largely on your creditworthiness. If you're judged a high credit risk, you'll get less favorable terms and have to pay higher interest rates. Get a copy of your credit report from the three major reporting agencies. You can get a free credit report from each agency once a year (click here). Review each report carefully and look for discrepancies. If you find any, make sure you notify each company immediately to get your report corrected. Financiers will be checking your credit report and you want to make sure they're getting the right info. For a few bucks (about $5 or so), the credit reporting agencies will send you your credit score with the report. It's important to know your credit score. The higher the score -- anything over 720 is excellent -- the better and the lower your interest rate.
• Have proof of insurance ready. No matter where you obtain your financing, you'll need to show proof of insurance to drive the truck off the lot. Most agents can pre-arrange insurance and activate it with a phone call the day you pick up your new truck.
• Understand the terms of your financing. Buyers can get tripped up and surprised by unexpected expenses if they don't thoroughly understand the terms of their finacing agreement. Some payment plans may sound good, but wind up costing you more money over the life of the loan. If you don't understand something in the agreement, ask until you get a clear explanation. You may want to have your attorney or accountant review the finance agreement before you sign.

For more information on truck and trailer financing, click here or click the Financing tab at the top of the page. You'll find plenty of great used semi trucks and trailers on the Trucker to Trucker website. Find a great truck or sell your truck on Trucker to Trucker. We make it easy and affordable. Just click on the appropriate tab at the top of the page for more information.