- June 21, 2024
- Posted by: Sergey Grushetskiy
- Categories: Equipment Financing, Trailer Financing
Many who want to purchase their own trailer tend to let lack of money convince them that it is not possible.
Ready for some good news? Many financing options are available that make it easy.
Where do you turn? How do you get started? What is the best solution? Let’s take a closer look at the different types of trailer-only financing options available.
Understanding Trailer Financing
Trailer financing is a little bit different than other types of automobile or truck financing. For instance, trailers can depreciate very quickly. Lenders find that these loans are risky because if you stop making payments and the trailer is repossessed, its value is likely to be significantly less than the unpaid loan amount.
What’s more, many lenders tend to rank trailers as less crucial to everyday life than automobiles. This often results in more strict financing requirements, higher interest rates, and shorter repayment terms.
Each of these things can make trailer financing difficult. Thankfully, options are available.
Common Trailer Financing Options
There are a few different ways you can obtain financing for your trailer purchase, each with its own set of requirements to qualify. Below are three of the most common.
Personal Loans
Personal loans are those that are unsecured and can often be used for anything. In other words, you may obtain the loan and apply it to the purchase of your trailer should you choose to do so. Because there is no collateral needed, you can usually expect to pay higher interest rates and have shorter repayment terms.
Dealer Financing
Dealer financing comes from the dealer — the one selling you the trailer. It can be convenient since you will be able to have everything handled right there at one time. Unfortunately, not everyone will qualify for this type of loan. And further, the interest rates and terms may not be ideal. Although it is an option, it may not be the best option.
Alternative Financing Solutions
Not everyone can meet the strict requirements of dealer financing or afford the high interest rates of personal loans. Alternative financing solutions are available through local and online financing companies.
Qualifying criteria can vary, but some will work with individuals who may have poor credit scores, may just be starting out in their trucking business, or are growing fast and need to meet demand.
Financing is available for your trailer needs so weigh all of your options before you settle. Keep in mind that, regardless of which type you choose, you want to ensure that it will fit your budget so that you can make your payments without fail.
Financing Options at 10-4 Financing
Whether you have good credit, bad credit, or no credit, you may still be eligible for trailer financing. At 10-4 Financing, we make it easy for everyone to have a fair chance and improve their business opportunities. Discover financing for your flatbed trailer, dry van, refrigerated trailer, car hauler, oil tanker, or step deck trailer today!
Contact us today to learn more. Or, apply online to get started.