Are you interested in starting your own business but do not have the cash up front to purchase the commercial trucks necessary to do this? If so, you will be happy to learn about commercial truck financing that may be available to help get you started.
Whether you are planning on purchasing the commercial vehicle to start a business or to upgrade the commercial vehicles used for an existing business, knowing the proper way to proceed with trying to obtaining financing for the vehicle will get you the best results. For example, many new prospective business owners are nervous about obtaining financing for their vehicle needs that they spend a great deal more on the vehicles that are purchased than what the actual value of the vehicle is. These following tips will help you get the most out of your commercial vehicle purchase, but remember to have the trucks or trailer inspected before you purchase!
Many first time commercial truck buyers are happy to purchase a used vehicle. This allows them to save additional money that can be used towards the purchase of a new vehicle later on, or to choose to invest the money into growing their new business venture.
Step 1. Instead of assuming that it is best to purchase new commercial vehicles you should look at the used vehicle selections that may be available to you. Often times the only difference is the price tag which can reflect a difference of tens of thousands of dollars. The average cost of a new commercial truck can range from $30,000 up to as much as $250,000 depending on the extra options that are selected for the vehicle. The used vehicle options that are available in the line of commercial trucks are at an all-time high. This is mainly due to the increase of fuel costs as well as a poorer economy.
Step 2. Make sure that you have any commercial vehicle you are considering to purchase inspected by a professional mechanic that you can trust prior to purchasing it. This can save you a great deal of money and time later. When you experience mechanical problems with your commercial vehicle this means that the vehicle will be unable to be used for the work you intend to perform. This results in high repair costs while you are losing money.
Step 3. Negotiate the price with the seller. Most commercial truck sellers start with a high asking price with the intentions of knowing the purchaser will want to negotiate. Many purchasers who are seeking financing for their commercial vehicle purchase often think that they are jeopardizing the financing if they ask the seller for a lower price. The fact is that the financer usually likes financing a lower amount. This means less chance of losing their investment.
Step 4. Make sure that you have all of the items in order so that your request for financing will go smoothly. Typically in most cases this means that:
When considering the option of leasing a commercial truck, many people shy away from this option due to the stigma associated with leasing personal vehicles. However, a commercial truck lease is different than a personal vehicle lease in many ways. Most personal vehicle leases are close-ended which puts limitations on the things such as the miles the vehicle can be drive, the uses for the vehicle and wear that the vehicle may sustain. Most commercial leases, on the other hand, are open-ended which allows the business the ability to use the vehicle however and whenever it is necessary without penalties at the end of the leasing period.
Here are some other benefits that a commercial vehicle purchaser should consider when weighing the options to purchase or lease:
When leasing a commercial vehicle for business purposes, the leasing expenses do not affect the company’s financial ratios. This allows you to keep a higher credit balance so that your credit can be used in other areas that are necessary for purchasing or business expenses.
Lease payments for commercial vehicles are tax deductible and will help to reduce your Alternative Minimum Tax (AMT) liability.
Overall the decision to purchase or lease is best decided by each purchaser to determine which option will provide you with the most beneficial choice.
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