Are you looking to purchase a semi-truck but are worried about the down payment cost? Here's what you need to know about how to assess a down payment and how your credit score affects this aspect of financing.
Credit Does Matter
When you're trying to finance a semi-truck, your credit is going to matter a lot. For example, anyone with a credit score under 650 is going to have a harder time financing a good semi-truck. That said, a higher down payment could help off-set the serious impact that a bad credit score may have on your chances. Typically, financing companies want you to meet the following standards before offering you a fair rate on your down payment:
At this point, your down payment should be no more than 10-20 percent of the total cost of the truck. However, those with bad credit can still finance a truck if they are capable of putting down a much larger down payment.
The Down Payment Price Skyrockets
Those with a credit score of under 660 can still qualify to buy a semi-truck if they have collateral like a home, vehicle equity, or other types of high-value items. However, this is going to cost them a bit in the down payment.
In fact, those with poor credit can expect to see a typical down payment rise to about 25 percent of the cost of your semi-truck. That is a pretty big investment for most truckers, but it is one that you need to make if you want to break into the industry.
If you need help finding an inexpensive way to finance your semi-truck, please contact us today. We will work to find a way to decrease your down payment and save you money.