Financing

My first truck bought from Arrow was financed by Transport Funding at 15.9%. They would not allow to apply over payments towards principle unless done in chunks of at least 5K. Never again!

 

I just bought my first rig in November of 2018. A 2014 T680 (used obviously). Have perfect personal credit but no previous commercial credit. Did have 4 years CDL experience. It was rather hard to secure financing. BMO turned me down even with a 25% down on the table. The Finance Manager told me it is due to the fact that this was a record breaking year for truck sales and most banks met their quota for the year so unless it’s a completely safe loan, A paper, they won’t touch it.

We did find ENGS financial and they did it with 15% down, 30 month term, and 14% rate.

Not great but better than my buddy who had similar case but about 2 year experience who could only qualify for one of those “lease” purchases. He’s at $1500 a month for 48 month (with a warranty and pm services rolled in) lease and I am at $1600 for a 30 month period (no warranty). My truck was $7K more expensive than his (2014 VNL670) He can’t pay it off sooner, I can.

All in all, one thing I put in perspective, I am grossing about $7K a week now (this is the good times). I wanted to get into a truck ASAP and whatever money I’m overpaying in interest I am making right back by having the wheels moving instead of sitting home and endlessly searching for better lenders.

If it’s your first purchase, it will more than likely be less than satisfactory for your terms. But if you start in tough conditions and make it the rest of the way will be that much easier.

Good luck!

 

Why not just finance from the dealer? Doesn't Volvo, Freightliner, etc. offer financing?

 

LLC or C corp. Start your commercial account. Use your ein and no ssn.

2 years in business from date of account opening.

50k in bank, last 90 days. Deposit only account.
All of your company money goes in.

The only checks out are to other bank accounts; payroll, general fund, etc.

Balance in primary always is growing... if you drop in 5k a week never pull out more than 4k.

Please tell me you have a dunn and bradstreet rating.

100 days later, go talk to your banker and tell him you need a new truck and are thinking about 3-5 % interest and 20% down... should get you what you need to earn even more money...

Ask him what he thinks and if he wants or needs a business plan from you president of LLC.

He will give you the money based on your commercial credit score. (Apr will be whatever they have available)

If you havent clearly set up a seperate LLC from your personal finances... you are probably screwed. Comingling your money is a no-no.