If your business entails the need to constantly move piles of materials or supplies, then perhaps it is a good idea for you to purchase your own dump truck. However, an upfront payment for one may break your bank because honestly, dump trucks are expensive. Fortunately, you can venture out a number of financing options that will allow you to get your hands into the dump truck that will support your business needs.
In line with this, the first order of business is to look for the perfect dump truck that you will set your heart on. You may be asking yourself the question “Can I find a dump truck for sale near me?” and the simple answer to that is for sure you will. Thanks to the advancements in modern technology that paved the way for any information to be made available online, even all about dump trucks.
As soon as you figure out whether you are going for a new or a used dump truck, and you have a good idea of how much it will cost, the next thing that you need to do is to explore your financing options. In line with this, you can either go for a commercial truck loan, a dump truck leasing or equipment financing.
Commercial Truck Loan
With a commercial truck loan, you will be able to borrow a lump sum that you can use to purchase the dump truck that you are eyeing. With this method, the vehicle will act as collateral to your loan. You will then need to make monthly payments for a certain duration of time that you and the lender agreed upon.
It is often the case that a certain interest is added on top of your monthly payments. Nevertheless, as soon as the loan term ends and you have completed the repayment, your dump truck is already yours. More often than not, this is the financing option offered by banks and other online lenders.
Dump Truck Leasing
Another financing option that you can look into is dump truck leasing. The mechanics of this financing option is very similar to that of a commercial truck loan wherein you will be granted a specific sum for you to get your hands on the dump truck that you want to purchase. You will also need to make a monthly repayment.
However, the significant difference between a commercial truck loan and a dump truck leasing is that in the latter, you will not own the vehicle even after you have completed your repayment. You can either purchase it at a residual value or return the truck to the lender instead. Some people prefer a leasing option because, in the end, they will be free from the worries of having to maintain an outdated dump truck.
Equipment financing works very similarly to a commercial truck loan. In this case, an equipment lender can finance your dump truck, with the vehicle acting as collateral on the loan. The main difference between a commercial truck loan and equipment financing is that for the latter, you may need to make a certain downpayment.
Financing Terms and Rates
- Loan Amount. The loan amount that you can get from any of the financing options mentioned above can cover the total cost of the dump truck, with some even ranging up to half a million dollars.
- Loan Terms. The loan term often varies between the different financing options. More often than not, it depends on the quality and the projected life of the vehicle you intend to buy. For some, you would only be granted a couple of years, while for others, the loan term can span up to six years.
- Interest Rates. Like with any other loan or financing option, you need to settle a certain interest as a payment to the lender for allowing you to borrow the money that you need. Fortunately, the interest rates for dump truck financing is relatively low compared to other business loans.
- Balboa Capital. Balboa Capital can offer an equipment loan that ranges anywhere from a couple of thousand dollars to a million dollars. The interest rate that they impose depends on a number of factors such as your qualifications, but expect an interest rate of around 10% of the overall value of your vehicle. With them, the loan terms can span as short as a couple of years or as long as five years, depending on where you qualify.
- eLease. You can receive a loan grant of at least $3000 from eLease with an interest rate of anywhere from 6% up to 35%. The term of your loan will be based on your creditworthiness, as well as the projected life of the dump truck. Nonetheless, the term can last anywhere from a couple of years up to five years.
- Crest Capital. The amount of money that you can get from Crest Capital can range from $5000 to half a million dollars. Their interest rate starts at 5%, which makes them one of the lenders that offer the most competitive one. their borrowers get a loan term of anywhere from two to six years.
- Currency Capital. If you want to buy a dump truck that is worth a couple of million bucks, then go with Currency Capital. The interest rate of your loan will depend on your qualifications, but more often than not, you can expect an interest rate of 6%. The great news is that with currency capital, your loan term can span up to seven years.
Regardless of whether you are looking into buying a new or a used dump truck, going for a dump truck financing rather than coming up with a hefty upfront payment may prove to be more viable. In this case, exert the extra effort to explore your financing options to ensure that you get the best deals with manageable payments. Just keep in mind that in doing so, you may need to fulfill certain requirements that are part of the financing process.
Joie is the passionate writer and blogger of UsedVending.com. She enjoys writing and works at an amazing pace. Blessed with two adorable boys, she dreams of creating a successful career online. She also loves to write about parenting, home and family life, technology and gaming, as well as beauty and health.