- October 12, 2021
- Posted by: Sergey Grushetskiy
- Category: Semi Truck Financing
If you are a first time truck driver who needs commercial truck financing, you might feel overwhelmed by the process. At 10-4 Financing, we make it easy for you to get behind the wheel and get on the road in your own commercial truck. Below, we go over everything you need to know about truck financing for first time drivers.
Commercial Truck Loan Application
We offer a straightforward application process at 10-4 Financing, so you’ll know exactly what you need and where you stand. We have a number of different loan programs for drivers of all backgrounds, enabling you to take the next step in your career by owning your own vehicle.
Our lenders work with drivers who have bad credit, so don’t let that hold you back from applying to finance your commercial truck. That said, the better your credit, the better the terms you can get from lenders. FICO scores in the high 600s will give you the most options; if your FICO score is in the 500s, you will likely need to work with a specialty lender and have more restrictions on the semi truck you purchase. No worries, though—10-4 Financing can also help you find the perfect truck to help your loan get approved.
Your driving experience is also a factor in your loan application. Naturally, the more experience you have, the more likely you are to get good rates. This is understandable from the perspective of the lender, but at 10-4 Financing, we’re more interested in being fair to our drivers. If you can bring other assets to the table, we’re willing to work with you even if you have no CDL experience.
Down Payment
One of the ways you can make up for a lack of driving experience is with a larger down payment. Lenders are taking a risk in financing a truck for someone with no CDL experience, but with a bigger down payment, you’re asking the lender to take a smaller risk, which many of them are willing to do.
Not only will you have a higher likelihood of approval with a significant down payment, you’ll also have lower interest rates. While we have the ability to secure financing for 0 percent down for qualified drivers, it’s difficult for a new driver to qualify for this.
Letter of Intent
Would you want to invest thousands of dollars in a business run by someone with no experience in the field and no prospective customers? Probably not! The same is true when it comes to commercial truck financing.
When you have no experience, you need to have proof that you’ll have an income stream once you get your truck. You can do this by supplying a letter of intent from your work source. A well-established haul source will make financing your truck less risky for potential lenders. This, combined with a good down payment and decent FICO score, can help you overcome your lack of experience.
Finding the Right Truck
At 10-4 Financing, we have three categories of truck financing: Essential Trucks, Premium Trucks, and Dream Trucks. While a Dream Truck might be the ideal fit for an owner operator with decades of experience on the road, an Essential Truck is better for a new driver. These semi trucks offer an affordable starting point and a foundation for building your business.
Learn More About 10-4 Financing
Are you interested in financing a semi truck? Contact us today at 888-908-7701 to speak with one of our representatives and get started with 10-4 Financing.