Financing a Used Bucket Truck Doesn’t Have to be Difficult
Heavy Commercial Vehicles (Class 6 and above) do not fall under the same valuation guidelines as personal motor vehicles. In other words, there is no Blue Book Value for used Commercial Trucks. Wholesale values for the purpose of Auction may be found in the Black Book, however when it comes to a Fair Market Purchase price – the purchase price is based on the vehicles age, condition and comparable retail value in the sellers market.
Finance companies view heavy commercial trucks as valuable business assets. These vehicles can help small and medium sized companies add capital equipment to their operations at a fraction of the cost of buying new equipment. The average lifespan of a regularly maintained Commercial Truck can be upwards of 30 years.
Equipment Financing is typically done by professional lending institutions who have a working partnership with Equipment dealers. This makes purchasing a used truck fairly simple because the Equipment Dealer will work with the lending institution on a customer’s behalf to secure the necessary funds required for purchase. Dealerships realize that by having lending partnerships in place they can offer the most competitive rates and loan terms to their customers. Having alternative financing in place for a customer can be an advantage for those business owners who don’t want to tie up their working capital or business lines of credit.
Banks are willing to lend money for used equipment purchases and determine their interest rates based on the stability of the borrower, credit rating and length of time in business. Used equipment purchases are typically at a slightly higher interest rate than new, but can still be very competitive depending on the length of time you plan on carrying the note. Most lenders prefer at least 5 years in business and in some cases will accept credit scores in the low 600′s and interest rates can be as low as 5.5%.
Larger Dealerships will have several finance partnerships established for bucket truck financing which makes it even more convenient for buyers. As for qualifying for financing, borrowers with good credit scores are valued and offered the best interest rates, but that doesn’t mean that borrowers with less than stellar credit scores are exempt from getting a loan. Lending institutions may require more money down, a better trade-in or a slightly higher interest rate may apply.
When it comes to buying used commercial equipment, several financing options are available. Whether you are buying used bucket trucks, Grapple Trucks, forestry trucks or digger derricks, financing doesn’t have to be an issue. I-80 Equipment is here to help you with your used truck purchase and your financing options.