Top Five Ways To Finance A Dump Truck For People With Bad Credit

Top Five Ways To Finance A Dump Truck For People With Bad Credit

It's hard enough in these economic times to finance a commercial truck. If you have bad credit it can seem like almost impossible. Having been in the commercial truck financing business for over twelve years, I have learned a thing or two about putting people with bad credit into trucks. Here is a short list of things to consider when looking to finance that commercial vehicle.
1) Search for dealer programs. Many dealers carry their own paper. What that means is they act as the bank. They will sell you one of their trucks and take monthly payments until the truck is paid off. A good option with both good news and bad news. First you are limited to buying one of their trucks. Not a problem if you find something you like but it is limited. The good news is they work with people with bad credit so you just might get financing.

2) Use of a "straw" buyer. This is where you have a friend or relative with good credit sign for the loan. This is different from using a cosigner. With a cosigner you apply for the loan and a good credit person cosigns with you. A straw buyer will finance the truck under his/her name only. This works great. Problem is with the tighter market many financing companies are not allowing straw buyers. It pays to ask around so check with dealers and be upfront with what your trying to do.

3) Buy off a private party. Search online or in local newspapers for trucks for sale from a private party. Many will take payments in lieu of a cash out purchase. WARNING: make sure the truck is either free and clear or, if financed you make the payment to the financing company yourself. I have heard of too many stories where the buyer makes his payments to the seller but the seller doesn't make the payments to the underlying financing company. Next thing you know the truck is gone. Be careful.

4) Find a rent to own arrangement. The granddaddy of this is the lease purchase; a sore spot with many truckers. But with a smaller owner operator you can get into a rent to own agreement where part of your payment goes towards the purchase of the truck. This is a nice way to do it. Just be sure you have an attorney look over the agreement. It's worth a thousand bucks to cover your assets (so to speak).

5) Put up additional collateral. This is my favorite for two reasons. First it gives you the freedom to purchase a truck from anywhere you want including private parties and auctions. Second, you can finance the truck under your name only, allowing you to reestablish your credit very quickly. You can visit our site at www.capitalsolutionsonline.net for information on our program. Or you can search Google for some others. The program works by putting up collateral in addition to what is being purchased. This can be other trucks, trailers, heavy equipment, or equity in real estate.

No matter what option you chose it's a good idea to explore all options so you can chose the one that's best for you. In my next article I talk about income that the trucks produce and how that compares to the expenses it takes to run your business. Happy hauling!