When you are in the market for purchasing large commercial vehicles such as semi trucks, daycabs or tow trucks, you do not have to settle for poor quality vehicles just to fit within your financial budget. In the long run these types of commercial vehicles may cost you a great deal of money for repairs. A better option is to take advantage of commercial truck financing and leasing options that may be available to you for your purchase. The key to choosing the most beneficial financing option for your business is to understand how they work and where to find them.
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.
When you need to purchase large trucks and commercial equipment for your business, there are reputable online financing companies that can work with you to make that happen. Most of these companies require that you have a CDL, at least two years of experience in the area of operating the commercial vehicle and have an income in which you would be able to pay your loan payment.
There are online financing companies that only require you to fill out a simple application which will take just moments to complete. You should get a decision on your application in a very short time period. For some companies this is instantaneous. The only thing that is left for you to do is to enjoy your new commercial vehicle.
These vehicles have benefits as well. There are a lot of people that shy away from this financing option because of the stigma that is associated with leasing a personal automobile. Commercial truck leasing is very different in the way that they are structured than a personal auto leasing plan.
Commercial truck leasing companies offer two main types of leasing options that will help finance your trucks and heavy equipment. These plans are known as an Operating Lease and a Capital Lease. With an Operating Lease, which is often referred to as an Off-Balance Sheet lease, is not considered to be an asset to the company. This type of leasing option is set up so that it allows the person or business leasing the vehicle to have the opportunity to purchase it outright at the end of the leasing period for the market value of the vehicle. For tax purposes, the payments used to pay for the Operating Lease can be deducted as operating expenses for the business.
A Capital Lease is the best option for the business owner who wants long-term ownership of the vehicle or commercial equipment. This type of loan is similar to a traditional bank loan and would be used on your company accounting balance sheet as a long-term liability. You would need to pay an interest expense when filling out your taxes. However at the end of your leasing term you could purchase these commercial vehicles and equipment for a very modest amount of money. Most business owners who decide to go this route with their financing usually pay amounts from $1 to approximately ten percent of the total equipment cost.
There are reputable online financing and leasing companies who are able to help you get behind the wheel of that new commercial vehicle right away. The application processes for these type of financing options usually only take a matter of minutes and most of them will give you an instant decision. It is important to make sure that you have all of your paperwork in order to make this process go as quickly as possible. There are customer service specialists who work for these financing companies that will be able to help you every step of the way so that you can start enjoying your new commercial vehicle as quickly as possible.
Read more Trucker to Trucker helpful Finance and Insurance articles.