Buying your first truck is an exciting step toward building your career, but navigating the financing process can feel overwhelming. From understanding loan requirements to finding the right truck to finance, there’s a lot to consider before you even get behind the wheel of your Kenworth. In this guide for first-time buyers, we’ll break down determining your budget, researching truck models, and making the purchase.
Potential Challenges
Once you’ve gotten your Commercial Driver’s License, it’s time to begin thinking about getting your first truck. But there are some obstacles that you may encounter during the loan application process.
Limited Credit History: First-time buyers may have little to no credit history, especially if they’re young or just starting out in the business. A limited credit history can make it challenging to demonstrate creditworthiness to lenders.
Higher Interest Rates: Due to the perceived higher risks associated with first-time buyers, lenders may offer loans with higher interest rates. But don’t be deterred, this will help in building creditworthiness and payment consistency.
Down Payment Requirements: Lenders may require a substantial down payment which can be a significant financial burden for first time buyers.
Don’t worry though! The information below will help guide you through the process of buying your first semi-truck. Staying prepared and informed can increase your chances of getting the loan you need for your dream truck.
Determine Your Budget
For first-time commercial truck buyers, it is important to set a strict budget. Before shopping, outline how much you can afford to spend upfront as well as on monthly expenses like fuel, loan payments, insurance, and maintenance. It’s also imperative to make sure you have additional funds for any unexpected costs that may come up. Setting a budget that covers all aspects, while allowing for extra funds, is important to maintaining the growth of your business.
Research Different Models
There are so many different types, makes, and models of trucks out there that it can be overwhelming when first researching the type of truck you need.
The Sales staff at our Coopersburg & Liberty Kenworth dealerships can help you with your search! With hundreds of new and used trucks in stock, there most certainly is a truck for every driver. We have the inventory to get you on the road. Our brands include Kenworth, Peterbilt, Mack, Freightliner, Western Star, and more. We have a vast variety of years, models, and truck types to choose from. Whatever your budget may be, there is a truck to fit it.
Financing Requirements
Applying for a commercial vehicle loan is similar to applying for any other type of loan. The buyer needs to provide personal and financial information to the dealership and their lender. The credit application process includes a review of credit history, income, and employment among other details. The type of truck you choose plays a major role in this decision. Additionally, meeting the credit score requirements, and having a sufficient down payment are important for qualifying for a commercial truck loan as a first-time buyer. By understanding these requirements and prepping the necessary documents, you will be one step closer towards owning your truck.
For more on the loan application, read our Semi-Truck Financing Requirements.
Financing Terms
Interest rates and loan repayment terms vary based on multiple factors such as a buyer’s credit score, financial history, choice of truck, and more.
Interest rates play a significant role in the overall cost of the loan. A lower interest rate can result in substantial savings over the course of the loan’s term. Loan term durations vary and are determined based on each individual buyer’s unique needs and financial status. Shorter terms may lead to higher monthly payments but result in low cumulative interest costs. Choosing the truck for your business after determining your budget plays a role in your potential interest rates and repayment terms. Make smart decisions for you, your business, and your financial future.
Seeking Financial Advice
Our Finance Manager is always here to answer any question no matter what step of the financing process you are in. Advice is always beneficial, especially for first-time buyers. He can provide valuable insights and guidance on your process to becoming a truck owner. And, by filling out our Financing Application, we can further tailor your available options and evaluate your financial readiness.
Buy from a Trusted Dealer
Partnering with a reputable dealer, like Coopersburg & Liberty Kenworth, will help simplify your financing process. Our experienced sales team will guide first-time buyers through the process of purchasing and financing. Contact us to discover your options!