HOW TO GET A SEMI TRUCK LOAN

SEMI TRUCK FINANCING

WHAT'S THE DIFFERENCE BETWEEN A SEMI TRUCK LOAN AND A PERSONAL AUTO LOAN?

Inexperienced individuals who are considering entering the trucking industry may assume that obtaining financing for a truck is similar to securing a loan for a personal vehicle. However, commercial truck financing differs significantly. While interest rates for personal auto loans are typically below 5%, the rates for Semi Truck loans, which are required for commercial trucking, range from 5-30%. Additionally, unlike car loans that can be acquired from traditional banks, commercial truck financing options from such lenders are often limited. Fortunately, Valley Big Rig Loans, specialize in providing financing options specifically tailored to the trucking industry.

STEPS TO APPLY FOR SEMI TRUCK FINANCING

There are several reasons why you might be interested in applying for semi-truck financing. Perhaps you need to purchase a new truck, use your title for owner capital, purchase from a private party, have a balloon payment due soon on a lease purchase, need maintenance, insurance, or make repairs to your current semi-truck. To start the process, you'll need to confirm your eligibility, gather the required information, select the appropriate truck or loan option, secure insurance coverage, and submit all of your documentation to Valley Big Rig Loans.

QUALIFICATIONS FOR SEMI TRUCK FINANCING

Some of the key qualifications for semi-truck financing include your credit history, down payment, length of time you've held a Commercial Driver's License (CDL), and the age of the truck you're interested in financing.

CREDIT HISTORY

While having good credit is typically advantageous when applying for a loan, especially as a first-time buyer, Valley Big Rig Loans recognizes that even individuals with a poor credit history may still be eligible for financing. We have options that require no credit score check.

DOWN PAYMENT

The required down payment on purchasing a semi-truck will depend on the cost of the truck you intend to acquire. With Valley Big Rig Loans, financing options are available for trucks from the year 2000 onwards. As a first-time buyer, it's common to provide a down payment of 20-30%, of the purchase price. This allows first time semi-truck buyers the flexibility to purchase a semi-truck in their price realm. No down payment is required on Title Loans.

CDL REQUIREMENTS

The length of time you have held your Commercial Driver's License (CDL) is another important factor to consider. Typically, drivers Converting to Owner Operators will need a minimum of three years driving experience to be eligible for financing. For Truck Company owners with one or more semi-trucks in their fleet, NO CDL is required, the only requirement is to have been in business one year or more. Driver information may be required.

THINGS TO CONSIDER WHEN PURCHASING AN OLDER SEMI

We are pleased to offer financing options for trucks dating back to the year 2000. Nonetheless, it's essential to keep in mind that purchasing an older truck, even if it seems like a good deal, may involve additional costs associated with repairs and maintenance. Older trucks are prone to breaking down or needing additional routine maintenance, and they may lack the latest safety and comfort features. Considering that you'll be spending a significant amount of time in your truck, it's crucial to choose one that meets your requirements and won't result in increased expenses over time.

FINDING THE RIGHT SEMI TRUCK

Discovering a truck that meets your needs can be a daunting task. Nonetheless, by keeping your expectations in focus throughout the search, you can identify a suitable semi-truck. After identifying the ideal truck for your business, you must negotiate its cost and acquire a written quote/purchase order for the purchase. The quote/purchase order should include the amount you will be paying, down payment amount and if applicable sales tax, warranty cost, trade in information, and vehicle registration and title fees.

ITEMS NEEDED TO FINALIZE LOAN

To expedite the financing process and secure your funding quickly, it's crucial to prepare all of your documentation ahead of time. Ensure you have all the following documents on hand to simplify the process:

Three months bank statements , settlements or pay stubs
A valid Commercial Driver's License (CDL) or CDL copy for driver if applicable
6 references and a copy of your phone bill OR 10 references
Photos of the Semi Truck
Proof of insurance with a minimum deductible of $1,000

Depending on your situation additional documentation may be required.

INSURANCE

Acquiring pre-approval for financing a truck is possible without insurance, but it is crucial to submit evidence of insurance coverage to finalize the process. The kind of insurance policy that you require hinges on the nature of your business. If the truck constitutes the sole asset of your business, then you will probably require the following insurance coverage:

Primary liability coverage
Physical damage coverage
Bobtail coverage for non-trucking use
Cargo coverage

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