Truck Financing Tips
If you’re planning to expand your fleet of commercial trucks, you shouldn’t be deterred by the cost of the vehicles. When you’re on a strict budget, it’s helpful to have financing options that make sense for your business. At RWC Group, we strive to offer affordable truck financing options to our customers. After all, this is an exciting time that should be free of stress. Read on to learn more!
Main Benefits
One of the main questions buyers ask is whether or not they should finance their commercial truck purchase. The answer will be different for everyone, but there are many perks to financing. Most importantly, you’ll be able to buy the vehicles you need without having to pay the full cost upfront. It’s true that the total cost will be higher due to interest, but you’ll pay in smaller chunks, which are more manageable each month. If you’ve got a steady, reliable income to help finance your truck purchase, this is a great way to make your money last while still being able to obtain the vehicle you’ve been searching for.
Establish a Budget
One of the best things you can do to prepare for buying a commercial truck is to work out your budget. When you start exploring different financing options, you want to feel confident in your decision. Confirm that you have enough money saved up for making the downpayment. You’ll also want to crunch the numbers to figure out how much you can afford to spend on monthly payments. Remember to consider other expenses as well, such as fuel, accessories, maintenance, and insurance.
Types of Loans
Typically, a truck loan requires that you use your vehicle as collateral, which means if you default on your loan, the lender can take possession of your truck. Also, the terms of repayment and the loan amount itself will depend on the truck’s cost and the expected lifespan.
Your lender might charge an annual interest rate ranging between 5% - 30%, depending on your credit score, the financial state of your business, and the type and condition of the truck you plan to purchase. These are fixed interest rates so you’ll have to pay a monthly amount throughout your loan’s tenure.
Assess Your Options
There are plenty of good options that you can try out when getting your commercial truck financed. While many large banks offer loans to small business owners at lower interest rates, you must have a good credit rating and be ready to make a downpayment. Specialized truck financing companies, including online lenders, help you get your funds quickly, but they charge higher rates than banks and offer you shorter repayment terms.
Our team is here to help you find a truck financing plan that works best for you. Visit RWC Group to get started today! We’ve dealerships across the western US, including Arizona, Alaska, California, and Washington, so visit a location that’s closest to you. We look forward to assisting you!