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What You Need To Know Before Buying Commercial Semi Trucks

If you own a trucking company and are shopping for a new semi truck, use our guide to unlock the best financing programs and rates-even zero down is available!

Maya Friedman
Maya Friedman
September 26, 2020

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It can be challenging for owner-operators to build their trucking journey from the ground up. Heavy commercial trucks are expensive and rigid while driving. Trailers are a cheaper option but not viable for big cargo shipments. With commercial semi truck financing, you get a cost-effective solution for all your trucking needs. 

Semi-trucks are manufactured as medium-duty for ease of driving while handling big weights. As a result, business owners and truckers have shifted to using commercial semi-trucks for their cargo. To buy semi trucks for your transportation fleet, you must ensure that your research on these trucks is accurate.

This guide will give you all the information you need from semi trucks benefits to commercial semi truck financing.

Benefits Of Buying A Commercial Semi Truck 

Let's begin by looking at why a semi-truck will be a better investment than heavy-duty trucks.

Suitable For Long And Short Hauls

Whether it’s a long trip or a local one, semi-trucks are suitable for any kind of journey. These modern trucks come with movable wheel axles that adjust the weight distribution over the rear axle. It also comes with a fifth wheel coupling so you can hook up and release the detachable trailer. This feature helps a lot with cargo-lifting. 

Many people worry that cheaper trucks are low on quality. That is not the case with semi-trucks. The advances in mechanical engineering today have allowed for economical commercial semi-truck financing. 

Low Maintenance

Commercial semi-truck financing involves little investment in maintenance. Heavy-duty trucks are rigid for driving, making them vulnerable to roadside damage. This increases maintenance costs as time goes by. With semi trucks, you experience no maintenance woes. 

It is hard to find parts for heavy-duty trucks. Since semi trucks are new, their engine parts are more readily available in the shops. The modern engine and improved construction of semi-trucks make it a more sturdy and reliable option than heavy-duty trucks.

Low Operation Costs

Semi truck operation fees include fuel, insurance, and registration. The overall price, including registration, is cheaper for semi-trucks. These newer trucks also come with factory warranties. The warranty lets new business owners and operators stick to their low budget without any hassle.  

Good truck insurance for a new semi truck also helps with commercial semi truck financing from banks. The newer models help mitigate the risks involved for the bank. So, it increases your chances of getting a bank loan.  

How To Get Commercial Semi Truck Financing?

If you decide to go with a semi-truck fleet, you may wonder about your commercial semi truck financing. You can get in touch with a car dealership to help you out with the truck and finances. 

Several banks and lenders also offer loans specifically for commercial semi-trucks. You will be required to give an application that mentions all the qualifications needed for commercial vehicle financing. If your application is accepted, you can begin the paperwork for the truck/ truck fleet.

The best part about commercial semi truck loans is that you do not need to present any asset for collateral. The truck you buy will act as the collateral asset in case you run out of money. 

How Important Is Credit Score For Commercial Semi Truck Financing?

This is a question asked by most owner-operators and small business owners. When running a business, you take out a few loans to manage operations. As a result, your credit score is affected by these loans. 

When you ask for another loan, banks look at your credit score to determine how profitable your operations are. Profitability indicates if you will be good to go for timely payments. So, a good credit score can help you get the best loan rates. 

There are still some good options available for you if you have a bad credit report. You can consider online lenders for financial help. They do not look at the credit history of borrowers but can charge a high-interest rate. 

There are also commercial semi truck financing companies to help you out. These companies specialize in providing semi-truck loans to good and bad creditors alike. They have partnerships with verified truck dealers to provide you with loans and quality semi trucks. 

What Are Interest Rates Available For Semi Truck Loans?

You know the exact interest rate only when you qualify for a loan. Nevertheless, a general idea can help ease your mind. 

You can expect an interest rate of 5-6% with a good credit score and job history. If your credit score is down, the rate can increase to 7-15%. If you stand at almost no credit, the rate will go all the way up to 30%.

You can pay a flat fee for the semi-truck if the interest rate is too high. This will be in the form of a vehicle lease. 

What Qualifications Do You Need For Semi Truck Loans?

The requirements can vary, but there are some general qualifications that you will need for commercial semi truck financing. 

Filed Taxes

Credit reports are also needed to ensure that you have paid all your taxes. Any tax lien will immediately disqualify you. 

Truck Insurance

Truck insurance is insurance for your collateral. It is a guarantee that the asset will not get devalued under your business operations. 

Monetary Reserves

You will be asked for a down payment on your loan. Lenders and banks also ask for documents that mention details of your capital reserves. These documents are important for insurance, registration, and future repair work. 

Final Thoughts

Semi trucks are the most viable option out there for owner-operators and small business owners. The trucks can handle the distance and cargo that you deal with daily. With several commercial semi truck financing options, you can focus solely on your growing business. 

You can begin by familiarizing yourself with your credit score. Many truck financing websites use the credit score to give you a quote on the spot. So, you can get this show on the road immediately.

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