Whether you are an independent truck operator or even work as part of maintaining a larger fleet, you are probably aware of some of the difficulties that are often involved in purchasing a new truck. This may be especially true if you are an independent driver and this is your first time attempting to buy a new truck for the first time. Often times, if you do not have a high credit score, it can be difficult or seem downright impossible to find a truck that will meet your needs and that you will be able to afford making monthly payments on. In some cases, you may be outright denied financing at all. Luckily for you, there are some steps you can take to better your chances of receiving reasonable truck financing so that you can drive that truck off the lot in no time.
For starters, what many truck owners decide to do is to find a cosigner. By finding a cosigner, you will be having another person or entity sign the financing paperwork, which makes them responsible for the loan in the event that you fail to make your payments. For this reason, finding a cosigners is not always an easy task, but if it is something you can do, then you can almost be guaranteed approval on a truck loan.
If you are unable to find one, however, you still have other options. For example, you may want to consider placing a larger down payment on the truck itself. This means that you will be borrowing less from the financing company and will, in turn, pay less in interest on the truck over time. Of course, this will mean forking up more money up front, but if this is something that you can afford to do, then it can really pay off over time.
Finally, if you do not have a lot of cash to put down on a vehicle but do have something else of value, then some dealerships or financing companies will allow you to put something down as collateral. This will essentially function as a down payments to guarantee that you will make the payments on your vehicle. If you fail to, then the financing company has the right to keep the collateral, whether it be another vehicle, piece of property, or other valuable possession.
By following the tips above, you can be sure to get approved for financing on a truck in no time. Good luck!
By Jason Dasher of Capital Solutions – a commercial truck financing company specializing in working with people with less than perfect credit.