Ready to drive your dream but have bad credit, no credit, past car repossessed? We can still help you get into a truck. Here’s what to know about financing your first truck as an Owner Operator.
You’ve decided to buy your first truck – but do you know how to finance and what your options are? A new truck can cost up to $100,000 depending on the size, style, engine, and horsepower. That means a big down payment at a dealership and the credit checks that come with it. It is extremely important to finance your truck in a way that is best suited for your situation.
Before signing anything, it’s important to understand what you’re committing to. You’re just starting out so you got to get the best deal possible. Here at CapStar, we want to equip you with all of the knowledge needed to make the financial decision that’s best for you. Then, we get you flexible lease terms up to 60-month when others will only do 30. Call us today to discuss your options, but scroll on if you’re wanting to learn more first.
Financing? Know Your Options
- Finance a truck through a direct purchase from a leasing company or by financing through a carrier
- Get a traditional loan, but can be difficult to qualify for as an owner-operator
- Leasing a truck or a fleet of trucks
Two Types of Leases
Capital Lease
- A capital lease is more like a loan, and at the end of the lease – the vehicle is yours. Throughout the loan, you are considered the owner of the vehicle and you assume all costs related to ownership. Once the lease has ended, you’ll pay a small buyout fee, and the vehicle will be yours.
- Most leases are 48-60 months, which is over 75% of the estimated life of the truck.
Operating Lease
- An operating lease is more like renting or a traditional automotive lease. This is typically preferred for companies wanting to start a fleet. You have permission from the lease company to use the truck for a monthly fee. Lease payments are considered operational expenses.
- The lease term is typically less than 75% of the economic life of the truck.
At CapStar, we can get your equipment funded. Older, pre-emissions truck? Bad credit and your car previously repo’d? We can still work with you. Make the call to learn more about how we’ll help you get your start as an Owner Operator.
Preparing for Truck Financing
Before applying, be sure to have a clear understanding of your credit situation, and know where you stand financially. Have a plan ready to show the financer that you are able to secure work and make your payments on time.
We’ll work with you, but with other finance options, you may also need to bring your contract if you have one to demonstrate your steady employment. Before you finance your first truck, it’s best to be up to date on all of your taxes too.
Know What to Expect
Applying for financing can be an extremely intimidating process. Knowing what to expect can ease some of your stress as you’re starting out. Be prepared so you don’t ruin your credit with too many credit checks.
When you’re ready to submit your information for financing:
- Have all of your financial documents in order.
- Complete the application.
- Once approved, thoroughly review the lease structure, monthly payments, interest rate, and length of your agreement.
- This process can all be completed as quickly as 24 hours.
Down Payment
If you have a high credit score, you could potentially have no down payment. Most funders will require a minimum, but no payment is possible. Some financers require a down payment of 10-30% of the value of the vehicle, so choose your lender carefully. Remember: multiple credit checks can crash your credit score.
Often a down payment is recommended, even if you qualify for no down payment – it will reduce your monthly payments significantly.
Apply for Financing with CapStar
The process of financing and buying a truck is both exciting and intimidating. We can finance you and do it without ruining your credit by going to every dealership in town.
We’ll tell it like it is and you can trust us to walk you through the process and find a plan that fits you, your budget, and your opportunity to become an Owner Operator. Our pros are here to help you choose the lease that’s best for your new or growing business.
Next stop? Reach out to CapStar Corp so that you can get to driving your own dreams.
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