Truck Auto Loans: Truck Auto Loans Financing the Next Truck

There are so many good transport companies in town and most of them require trucks to carry the cargo from one city to another. Now, a profitable business is not usually possible with one truck and one driver. Such companies usually maintain several trucks and employ many drivers for various shifts. Of course, the trucks must be good enough to sustain the regular loads and high speeds required for conducting a good business. But is it worth buying new trucks for this?

Unless you have the funds for investing in brand new trucks, you can go for used trucks from government auctions or reliable dealers who give good quality vehicles. But yes, if it is for you as driver, you could do with a new truck for your own. Now, if you want financial assistance, you can go for truck auto loans. Whatever the case, there are new auto loans and used auto loans for all. The borrower is free to search for the best auto loan.

Terms and conditions

There are slightly different terms and conditions for new auto loans and used auto loans. Truck auto loans for new and used trucks might differ by a few thousand dollars. Again, the borrowers choose the best auto loans that suit their requirement. Depending on the term of payment, say below 3 years or above 3 years, the loan rates may hover anywhere between 12 to 15% of the on-road cost of the truck. New auto loans have higher rates of interest as compared to used auto loans based on the market or resale value of the truck. Truck auto loans are available for those with good and bad credit as well. The eligibility might be restricted to those with regular income, say a company, partnership, individual or those in a private or public firm.

As with regular auto loans, truck auto loans might call for submission of bank statements, income proof, tax details, proof of address, any bankruptcy claims and credit report. Even the best auto loan lenders ask for hypothecation of the truck the borrower is taking funds for. If you delay any particular installment, you might be penalized by 2-3% per annum. Some truck auto loan lenders might ask for collateral security in addition to the basic security, especially for people with bad credit history. But yes, loan rates vary for faster payback and for good down payments by the borrower. The processing fee is very less in online auto loan companies and the approval is also done fast if the requirements are satisfied.

Compare and choose

Get quotes from various truck auto loans lenders. You are not compelled to take a loan from any particular lender. Even if you are desperate to get financing, do not rush into the first auto loan that comes your way. As it is while driving the truck, proceed with caution even for loans. Make note of authentic companies with honest client reviews and good terms. The lender and you must earn the trust of each other for financing any future truck purchase.