>> Dec 29, 2015
Usually when owner operators are considering to buy a used semi truck, there is only one question lingering in their mind - How much will it cost me? Well, by cost they mean will they be able to pay for it out of their incomes and will it be worth it?
There are 4 factors that determine your monthly payments, when you lease a semi truck, they are:
· The actual cost of truck
· Your creditability
· From whom are you leasing it
· Time period of finance
The actual cost of the truck:
The prices of used semi trucks vary a lot depending on factors like age, model, condition, miles the truck has worked, etc. Usually a new one costs you around $100,000, a 7 year old will cost you $40,000 to $60,000 whereas a 10 to 15 years old will cost you $35,000 to $45,000. Mostly, finance rates will go down as the price will rise.
The better your credit, the less you have to worry about the down payment. Also, if you give in more money as down payment, the interest rates can get a lot cheaper. However, if you want a semi truck loans bad credit no money, then there are 3 things that can actually kill the deal badly, and they are:
· You have a child support liability
· Your bankruptcy is not yet discharged
· Your vehicle is recently repossessed
From whom are you leasing it
If you are buying a new truck directly from the dealer, then you can expect to get a financing deal from the dealer itself. On the other hand, if you are buying from a private party who does not offer a cheap financing option to make the deal better, then it is a good idea to look for other options.
Well, the thing is, if the dealer is using the cheap financing option to make good sales, then you must always go for it. However, if the dealer is not offering a good deal, then you must always consider calling a couple of financing companies.
Time period of finance:
The duration of your finance certainly affect your overall cost. Furthermore, if you have bad credit, then your interest rate will be higher than someone whose credit is great. So, if you have bad credit and are charged more interest rate, then it is ideal to pay the loan as fast as possible. Try to make the highest payment what you can manage every month and make the finance period as short as possible.
Hopefully the points discussed above have not scared you a lot. It is understood that the bad credit has a way of not working in your favor when you are looking for applying for loans, but still, most of the people believe that it is better to have a truck of your own, rather than driving one for someone else.
Think of it like this - most owner operators earn $10,000 a month. Now, if you have a bad credit, then you might end up paying $2000 every month as truck payment with high interest rate. However, still you take home $8000 driving your own truck, rather than taking $4000 driving for someone else.