Kenworth Truck Financing
In today’s economy, start up and seasoned businesses have an unique opportunity to acquire an attractive deal for any type of Kenworth truck. The first option, for the buyer, is to visit their local dealer and find his truck there. This is great place to start and obtain pertinent information that will be used later in the data gathering process. From there, it is recommended searching the internet and its mass volume of data that is available. The potential buyer can visit such sites as truck paper and truck trader etc to view thousands of listings of trucks available across the United States. He is able to sort and sift through this vast data and should be able to find a truck, in any city and/or state across the U.S, that meets his acquistion requirements. Once he has located a source of trucks available to him, he is able to contact these sellers and negotiate a deal that might be able to meet his needs. Once he is agreed to a price and its particulars, his next hurdle is to find adequate financing in today’s complex lending world of this commodity.
The type of Kenworth trucks we are identifying for this article is the following:
Dump trucks, semi trucks, garbage and refuse trucks, Tow trucks, Cement Trucks, Concrete Trucks, Flatbed Trucks, etc
Today, the financing arena for Kenworth trucks has become much smaller, especially for over the road trucks.. Lenders, in the past, that use to finance this niche market have either pulled their portfolio funds out of this area or have modified its lending requirements. It is not unheard of today that a start up business must commit to a down payment of between 10% - 30% of the acquistion cost of the Kenworth truck to enter this market. The seasoned business with good credit might be able to get in as little as one payment down plus documents fees but must have either A or B Credit.
As the economy has weakened due to market conditions, including diesel gas reaching $4.50 or more per gallon in certain states, the route of conventional financing has changed as we know it. The lender has acquired another problem that makes their equation a little more complicated. In the past year as the price of food has gone up, the real estate markets have taken a toll for the worse and other world factors have caused the banks to be more unstable, the trucking industry has become more volatile. As the increase of defaults on the payments of Mack and all other trucks have risen to all time highs, the lenders have been taking back these trucks by the droves that are earmarked as repossessions. This has caused a problem with normal lending practices and trying to balance it with a non producing income portfolio. If these lenders don’t act swiftly and prudently, the combination of these two type of portfolios can be devasating to the lenders’ bottom line. A third factor to consider is the off lease truck. These trucks are being returned to the lender and they must act accordingly with this third factor.
Today, some of the lenders in the financial market have advertised personal credit qualifications as low as 600, prior bankruptcy rules amended or ignored, and start up businesses welcome. Additionally, the front money to commence a lease can start as low as first payment only to whatever you might able to negotiate. Some of the lenders have application only programs up to $250,000. There are no financial statements, income tax returns or bank statements required. Additionally, some lenders may defer some of payments to get the semi trucks financed. The buyout clauses on these over the road trucks can range from a $1.00 buyout to 10% to 20%, Trac leases to possible fair market value buyouts. One should understand these clauses because they have an impact on the passing of title.
Additionally, there are two distinct financing markets out there, one for the normal acquisition from the dealership and the possibility of acquiring a repo and off lease from a lender at favorable market and financing terms. As always it is advisable, if possible, to locate financing prior to truck shopping, it could save a lot of time and stress.