What Are the differences in financing?

[BigJoe0904]

I was wondering what the differences were between a traditional auto loan and a loan on a d-unit? Intrest rates terms and ease to qualify.

 

[greg334]

Auto loans? They still have those... I thought everything was leased now.

Seriously, most truck loans I think are treated like any other commercial capital equipment loan. Where the auto loan is a person loan.

 

[pellgrn]

On a d unit your options are limited to commercial,and be prepared for 10 percent interest a good down.They may want to see some experience in the industry along with a business plan,and a good credit score.

 

[BigJoe0904]

Wow! Ok thanks for the input

 

[davekc]

Truck financing is certainly tougher for someone new than it was several years ago for the same circumstances. Business plans are worthless unless your going to the local bank and they know little about trucking. Chances are in today's economy they will require outstanding credit, 30 percent down or higher, or substantial collateral against that loan. Commercial loans wouldn't even look at a business plan for a truck leasing to a carrier as the carrier in most instances is controlling the income. They already know the trucking industry. They will look for down payment, longevity in the business and credit score before anything else. If they don't, expect sub-financing with outrageous interest rates. In those cases, they are banking on your failure.