Bank Financing a Semi Truck

My last truck financed was just like a car loan. I found a truck, went and talked to my regular banker,she asked a few questions, I filled out an application, she checked loan value, called me to sign papers,she checked insurance, gave me a check, and I picked up truck. Just like a car loan.My terms were for 42 months, roughy 25 % down. The important thing is loan value of truck,if you have work for truck, and your credit history.
Most banks do not want to offer truck loans, unless you have an established relationship with them. Too many loans go bad.

 

I bought this truck with no money down at 7.5 percent for 36 months.

I guess that's why we call my banker friendly Carl.

Oh ya and I was on the road when I called and had him to borrow the money and fedex the check to the dealer for me .

 

I've read many of your other posts so I have an idea where you are going. The two owner/operators that responded have about thirty years experience each.

With no driving experience you will have a tough time getting financing. In addition, you won't have any better luck leasing a truck than getting a job. To lease you will have to qualify just like a driver. You won't find any company that will lease you on with no experience. And it will be tough to get a loan without a lease or experience.

Now it is possible to start with your own authority with your health issues and no experience. You will need a lot more money though and with no experience, I'd say you have about a 15% chance of success. If you have enough money you might double that chance. If you do this you need a down payment for truck, trailer and insurance. Insurance will have a 500 - 700 air mile radius restriction and will be very pricey. You will need a few thousand back for repairs and at least a month to month and a half of fuel money.

If you have a good relationship with your bank and they haven't been burned on trucks that might work. I have a bank I have done business with for 47 years. I can get anything but a truck loan.

I have owned two trucks over the years. With the first one I lost everything I owned and my family. What you are thinking about can be done. The odds are not in your favor.

Read all these threads:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html

Then if you're still feeling froggy, read all the docked threads in the "Ask An Owner Operator" section.

Believe me I don't want to talk you out of your dream, I just want you to understand the cost and risk. I'll help any way I can. Feel free to contact me.

 

Being a new business and no experience, I refinanced two paid-for vehicles and used the cash to buy truck and trailer. Though my credit union some crazy rate like 1.9% over 60 months. The idea is to get it paid off a lot faster, preferably 24 months and more realistically 36.

So now we're back in debt with my pickup and my wife's car, and have clear title on the commercial equipment. PS: title in hand (versus held by the bank) made the IRP process go a LOT smoother.

 

My father in law who had excellent credit checked with Capital One and got a $50,000 unsecured loan. Went and bought his truck and had a clear title. He ended up with a rate of around 6% with the payment being around $800 and some change. I have delt with both banks and finance companies in the past like Paccar and GE. I am currently with my local credit union because they offered a low interest rate and no money down. I hope I never ever have to deal with the big finance boys ever again. The problem with banks is there is always someone that is going to screw it up for everyone else. I started with a bank in Kansas with my first and second truck and paid both off and made my payments on time. They ended up with some repo's and a lot of late payments from others so they will not even touch a truck loan. I financed another truck with local bank and paid it off and payments on time, they won't touch a truck loan anymore because of getting trucks back and guys always calling in and having some excuse why they are a month or so behind. Even with excellent credit and a good working relationship with these banks I cannot finance a truck with them because of others but I can get everything else financed even farm equipment if I was a farmer but no trucks.

 

I agree with all the advice others have given.