Semi Truck Financing Requirements
The American economy is dependent on trucking. Truckers are essential to the survival of every American city. With the current shortage of truck drivers, it is even more critical to help new truckers and seasoned veterans get quality financing. You need to know this about commercial truck financing through mission Financial.
Business Auto Loan vs. Personal Auto Loan
You may assume that financing a truck is the same as getting a loan to purchase a vehicle. Investing in a commercial truck is a different matter. Personal auto loans have interest rates below 5%, while commercial truck financing requires a loan of between 5-30%. While you might go to a bank for a loan to buy a car or truck, many banks won’t offer to finance commercial trucks. There are other lenders like Mission Financial that specialize in semi-truck financing.
Semi Truck Financing
Semi truck financing may be an option for you for many reasons. There are many reasons to apply for semi-truck financing. Once you’re ready to start the process, you will need the information to establish your eligibility, obtain insurance and submit all documents to Mission Financial.
Find out if you are eligible before you apply for any type of financing, and make sure you qualify. For semi-truck financing, the most important criteria are overall credit, downpayment, time with CDL, truck age, and time with CDL.
Total Credit
Good credit is a must to be able to get a loan. This is especially true for first-time buyers. However, anyone with a poor credit history may still qualify for a loan from Mission Financial. Mission Financial is proud that we are a common-sense lender. This means that we value more than your credit score. We will evaluate your credit score when evaluating financing options.
Ideal candidates have minimal tax liens and child support and have not filed for bankruptcy or been subject to repossessions within the past year. To be eligible, you don’t need truck credit before applying. Enclosures will be reviewed individually. We will consider the positive aspects of credit history, such as timely car payments and solid mortgage payments.
Down payment
The cost of the truck that you want to buy will determine your down payment. Mission Financial offers to finance 2000-model trucks or later. This allows you to purchase a truck without needing a down payment. First-time buyers typically pay a 20%-30% downpayment, usually between $25,000 and $30,000.
Time with CDL
It is also essential to consider how long you have held your Commercial Driver’s License (CDL). Financing is available to drivers with at least three years of driving experience. Drivers with less driving experience, who can afford a higher down payment, will be considered.
Age of Truck
Commercial financing companies typically only finance trucks manufactured in the past 5-10 years. We are happy to provide financing for trucks built before 2000. Even if you can get a great deal on an older truck, you should consider the maintenance and repairs required. Older trucks are more susceptible to breaking down and need regular maintenance. You won’t find the most up-to-date technology to improve safety and comfort. Your vehicle will be used for a lot of your time, so make sure it suits you and doesn’t cost more.
2. Get the information you need
It is essential to have all documentation prepared before you begin looking for the right truck. This will ensure you have all the documentation you need to secure financing once you find the perfect truck quickly. To make the process smooth and quick, ensure you have these documents at your disposal before you start the Mission Financial process.
- Bank statements and tax return
- Current Commercial Driver’s License
- 6 or 10 references with no active phone bill
- Contact via cell phone
- At least $1,000 deductible.
You may need to provide these documents depending on the situation you have with your employer.
- Co-signer Declaration
- Articles of Incorporation and Corporate Resolution
- LLC Agreement & Operating Agreement
3. Locate Your Truck
Finding a truck that suits your needs and qualifies for financing can be rugged. You will find the perfect truck if you set your criteria and keep searching. Make sure you choose a truck capable of hauling your business’s goods.
After choosing the best truck that suits your needs, it is time to negotiate the price and receive a written quotation on the purchase. The cost and the following information must be included in the quote:
- Title and vehicle registration
- Title Guarantee
- Photos of the vehicle that you want to finance
- Original, signed credit application
4. Find the Right Insurance
Although you can be pre-approved for financing without insurance, providing proof of coverage for your truck is essential. Your type of business will determine the type of insurance that you require. You will need insurance if your truck is your only asset.
- Coverage for primary liability
- Protection from physical damage
- Bobtail coverage is available for use other than trucking
- Cargo coverage
5. Send your documents to Mission Financial
It is now time to apply and get approved for semi-truck financing. You can drive your semi-truck in no time if you have all the information required. Call to apply: (571) 544-6600
