When purchasing any vehicle, one of the most important decisions is whether to buy a new vehicle or a used one. However, the case becomes even more particular if you’re looking for financing a used truck as it requires thorough research and you need to make a choice between personal and commercial vehicle loans.
Reviewing of your business’ assets and equity
If you’re buying a truck for commercial purposes, your lender will first review the assets and equity of your business. Your lender will focus on certain parameters before agreeing upon the terms and conditions. Unfortunately, newly introduced businesses may have a harder time securing financing.
Lifespan of your vehicle
The age of the vehicle is of the utmost importance for your lender because older trucks will be hard to finance. Furthermore, your business’ cash assets play a major role in determining the terms and conditions of the loan and also influence the amount of down payment. Depending on the lifespan of your business and its cash assets, the down payment on the commercial truck can range anywhere between 0% and 15%.
Credit score and credit history
Lenders use credit score and credit history to determine if an applicant can apply for funding and also to craft the terms and conditions. Get your credit rating ready while applying for used truck finance. If you have a good credit rating and credit score, you have an advantage to negotiate on the interest rates and amount of EMI.
What can you afford?
When financing any vehicle, one important point that should come to your mind is, what can you afford? As a general rule of thumb, the monthly EMI should not exceed 20% of your monthly income. The average term for truck loan is 5 years. Therefore, you should be sure that your source of income is secure for the next 5 years. Normally, used vehicles are funded for 10 years of life. Ex – 4 years old used trucks will be funded for maximum 6 years.
There are different lending options available when it comes to financing your truck. But, they can be broken down into two categories: direct lending and dealer financing. You have to decide which option is appropriate for you, depending upon your financial situation. The terms and conditions can vary over different lending platforms. For a better understanding, you should check with prospective local banks, national banks, credit unions, online lenders, and second hand dealers.
Lenders find it easy to fund used vehicle through organised channel as it ensures quality used trucks and good customers’ profiles.
Buying a truck doesn’t need to be a complex matter. Applying for a used truck through Eicher Sure is easy and convenient as it provides the reliable and Value for money used trucks. Understanding the needs of the customers, it offers ease of selling, exchanging and purchasing of used trucks under one roof. To ensure a hassle-free experience, every truck undergoes in-depth transparent evaluation on 101 points covering legal, commercial and technical parameters for best value. Besides, for customers looking for used trucks for sales, Eicher sure is an end-to-end solution to all the problems of the customers related to good resale value, transparency of pricing and documentation of used trucks after sale.