4 Steps to Arranging Financing for Your Semi-Trailer

by TJ on December 13, 2010



It doesn’t matter if you are a one-man outfit starting from scratch, or an established business looking to optimize your financing and fueling expansion – everything hinges on money.

Getting the financing you need for your new or used semi-trailer or big rig is a crucial component for your commercial success, which is something we understand at Trucker to Trucker.  Paying too much will eat away your bottom line and take-home pay; failing to get the finance means you lose valuable time on the road making money, or worse, find yourself stuck working for someone else for a fraction of the revenue being generated.

Take these simple 4 steps to arranging your truck and semi-trailer financing which suits you and your business:

One – New or Used Semi-Trailers and Big Rigs?

There is a lot of hot air blown about how you have to buy new to get the financing.  This is not strictly true and you should check out the used inventory because most of the depreciation has been taken out of the equation, which means you get a better return on your investment and become more profitable.

From the point of view of arranging finance, the only real difference is the price tag involved and that can be a massive difference.

Don’t assume buying new is better for arranging the finance – it’s just not so.

Two – Professional Vehicle Inspections are a Must

Before you agree to buy any vehicle or trailer make sure you have it professionally inspected. Any proof of professional inspection can also be used to support your finance application, and in any event it is best to make sure the equipment you are using is going to stay on the road when you need it to be.

Three – Negotiate and Haggle on Price

Don’t be fooled by the sticker price – that’s just the starting point for negotiations. Most sellers will deliberately jack the asking price up knowing they will have to come down in the negotiations later. You will not put your finance application at any risk by negotiating on the price, in fact, the lower the price you negotiate then the less risk the finance company is being asked to take on and that makes you more likely to be approved.

Four – Get Your Documentation Sorted Out

There are several pieces of documentation you are going to need, so get them arranged in advance of any finance application:

  • Down payment – typically you will need 20%
  • CDL license
  • Proof of income – or proof of the contracts you will be working on
  • FICO score and credit report

For more information and advice on financing, take a look at our trucker financing resource here.

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