If the purchase of knuckleboom trucks is in the planning stage in order to start a business or to upgrade a fleet of an existing business, in-depth knowledge of commercial truck leasing and financing could be very valuable to know as it is probably the best way to acquire a vehicle for business purposes without having to invest so much money up front.
The purchase of knuckleboom trucks through some means of financing usually requires that buyers have to pay about 20 percent towards the purchase price plus processing fees. The balance of the selling price, along with interest, is then paid on an installment basis. The good thing about this is that buyers can start their business with the newly accepted equipment as soon as the financing is approved by the lender.
If this option appears suitable for a business, following are some tips on how to successfully finance a commercial vehicle purchase.
- Stay Within Budget – With the current economic climate, it is advisable to buy a used vehicle rather than a brand new one. Financing brand new knuckleboom trucks can cost as much as $ 250,000 depending on the features and upgrades that are desired. Along with the interest rate, the total cost would amount to several years of having to keep up with a monthly payment. On the other hand, a used vehicle typically costs about half as much of the original price. That means it is half the fiscal burden to finance a brand new vehicle. As for performance, a buyer may not even be able to tell the difference between used and brand new when it comes to how it operates.
- Determine Reliability and Performance – In order to determine the performance and reliability of used knuckleboom trucks, have a professional mechanic inspect the vehicle prior to making the purchase. Paying a small fee for a mechanic to inspect it will save a great deal of time and money further down the proverbial road!
- Negotiate the Cost – It is always appropriate to see if the seller will make any concessions on the listed price. Even a small discount a buyer gets from negotiating with a seller reduces the monthly payment and interest during the course of the loan. Lenders are more likely to approve a loan that is for a cost below the listed loan price for that vehicle as opposed to claiming to finance an amount that is greater than the listed loan price. Starting out repayment of a loan when that leaves the buyer 'upside-down' is risky – and lenders are trying to avoid risky loans completely!
- Look for Low Finance Rates – A buyer with a good credit score should take advantage of that fact by finding prime lenders that offer low finance rates. A good credit score is highlyought after lenders and, regardless of which lender is chosen, the chances of qualifying for financing will always remain high. So take advantage of this and shop around to find the lender who offers the best rates.
- Prepare for Financing Requirements Early – Make sure that all of the requirements for applying for financing are complete before looking for knuckleboom trucks. In most cases, the requirements needed to conclude loan qualifications and paperwork are: the down payment of typically 20 percent of the sale price; a copy of the buyer's CDL; a credit report and FICO score; and proof of income that will be used for satisficing the loan.
Qualifying for commercial truck financing is made less difficult by the fact that knuckleboom trucks are highly valued collateral. Best of all, preparing for proper financing is a great way to acquire these vehicles that leaves only the need to determine how to get the purchased vehicle back to the company!