Commercial Truck Financing Guide
Purchasing a new truck can be an expensive endeavor, which is why so many potential buyers turn to financing to assist them. There’s nothing to be ashamed of if you utilize financing to buy your commercial truck. This process can help you to save money up-front by allowing you to pay off the value over time.
So how do you go about financing your commercial truck purchase? DeBary Truck Sales in Sanford is your Florida commercial truck dealer, so we’ve provided this helpful financing guide to assist you in every step of the way.
Why Finance?
Fleet owners and independent contractors alike will make use of commercial loans to purchase trucks for their business operations. Financing helps to take some of the burden off a new business by ensuring that it has the equipment necessary to function from the get-go. There are many different lenders available for commercial truck financing that can help you to buy a new or used truck. Some loans can even help you with repair costs.
Types of Loans
Commercial truck loans are secured loans that make use of the truck itself as collateral. This means that if the purchaser defaults on their loan and fails to make regular payments, the lender can repossess the truck to recoup their losses. The terms and amounts of a given loan generally correlate with the type of truck purchased and how long it’s expected to last.
Annual interest rates can vary widely, from 5% to a whopping 30% in some cases. How high your interest rate is will depend on your credit score, the state of your business and the condition of the truck being purchased. A fixed monthly payment is standard for these loans, and it may take anywhere from a few years to fifteen years to pay off in full.
Determining the Full Cost
When looking to use financing for your truck purchase, you need to figure out how much you can realistically afford to pay up-front (a typical down payment is 10% to 20% of the vehicle’s full cost) as well as what you can afford to pay towards the loan each month. Make sure that you factor in additional costs, such as the application fee for the loan, an appraisal fee on the truck and credit-check costs.
Ask the lender about annual percentage rates when selecting a loan so you can understand the fees involved. Always make sure you go over your loan agreement carefully before you sign it!
In search of commercial trucks for sale in Florida? Stop by our dealership in Sanford, FL, to check out our wide stock of new and used commercial trucks for sale. We also have a financing department here at our dealership to help you with your purchase. Talk to one of our sales team to learn more about our commercial truck financing options. DeBary Truck Sales proudly serves the city of Atlanta, GA.