If you are a truck driver that works independently and you need to get a different truck to drive, there are some considerations to make. If you don't think you can afford to purchase a brand new truck for the work you have, there are plenty of used options that you can find that may be a great investment. If you worry about credit and having enough money to put down, you'll want to consider the following things when you meet with the financing professional.
Proof of Routes and Contracts
It's important for the bank to know that you're still going to have work to do after you get the financing for the new truck. You should show the contracts that you have with companies, to prove that the work is already lined up, and also any set routes that have you. This information will be helpful and past year's tax return and proof of payments will also be required when you apply for the loan.
If you have an old truck that you are going to sell as soon as you get a new one, you want to make sure the bank knows you plan on using this for collateral. You may want to agree to sign the title of the current vehicle you have over to the bank, so they trust that you will give them that money after the sale of the truck. This could be the down payment for your loan, or an easy way to knock down the principle and make the payments more affordable.
A co-signer may be needed if you have to make a large investment and you don't have the credit or collateral to get approved for the loan on your own. You should talk with a close family member or friend if you think that having a co-signer could bring down your interest rate and help you get approved for the loan.
If you know your old truck isn't going to be reliable much longer and you already worry that it's going to break down someday while you are doing a run, it's time to explore the new and used options available at local semi-truck dealers and retailers. You can choose what size you think you need, and you'll pick a vehicle you think you can afford, so you can make the switch and keep earning money through logistics and delivery.