Heavy-duty trucks play a vital role in the transportation and logistics industry, enabling businesses to move goods across vast distances.
For many companies, purchasing a heavy-duty truck can be a significant investment.
This article will explore the different classes of heavy-duty trucks, discuss the financing options available, and provide helpful tips for securing the best possible financing terms.
What is a Heavy Duty Truck
The Federal Highway Administration (FHWA) classifies heavy-duty trucks into two main categories based on their Gross Vehicle Weight Rating (GVWR): of 26,000 or greater.
Class 7: Heavy-duty trucks with a GVWR between 26,001 and 33,000 pounds. These trucks consist of city tractors, refuse trucks, and furniture trucks. They are designed for more demanding tasks and longer distances than Class 6 trucks.
Class 8: The heaviest category of trucks, with a GVWR exceeding 33,000 pounds. This class encompasses semi-trailer trucks, cement mixers, and dump trucks. These vehicles are built for long hauls and are capable of carrying massive payloads.
Heavy Duty Truck Financing Options
Heavy Duty Truck Loans
Obtaining loans from banks, and credit unions can be challenging. The “big banks” typically lend to customers with really strong credit profiles. Finance companies that specialize in commercial truck financing like TopMark Funding have more options and less strict criteria.
These loans generally have fixed interest rates and require a down payment of around 10-20% (or greater depending on your credit profile) of the truck’s purchase price.
Leasing a heavy-duty truck involves signing a contract to rent the vehicle for a specified period, usually ranging from 12 to 60 months.
At the end of the lease term, the lessee can either return the truck, purchase it at a pre-determined residual value, or negotiate a new lease agreement.
Leasing can be an attractive option for businesses looking to keep up with the latest truck models and technologies without the upfront costs of purchasing.
Credit score: A strong credit score is essential for securing the best possible financing terms. A higher credit score can result in lower interest rates, reduced down payment requirements, and better loan terms. It’s crucial to review your credit report for inaccuracies and take steps to improve your score before applying for financing.
Down payment: Save up for a substantial down payment, as this can lower your monthly payments and interest rate. A larger down payment also reduces the risk for the lender, making them more likely to approve your loan.
Consider the total cost of ownership: In addition to the purchase price, factor in the costs of insurance, maintenance, fuel, and potential repairs when determining the affordability of a heavy-duty truck.
Expert advice: Consult with industry professionals or financial advisors specializing in heavy-duty truck financing like TopMark Funding. Our expertise can help you navigate the financing process and secure the best possible terms.
Conclusion
Heavy-duty truck financing can be a complex process, but understanding the different classes of trucks and financing options available can help you make informed decisions.
By maintaining a strong credit score, and saving for a down payment, you can secure the best financing terms for your heavy-duty truck purchase.
Don’t forget to factor in the total cost of ownership and consult with industry professionals to ensure you make the most informed decision for your business.
With the right financing strategy, you can invest in the heavy-duty trucks needed to grow your business and meet the demands of today’s transportation and logistics industry.
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated commercial vehicle finance company. We specialize in commercial vehicles and construction equipment. Our mission is to become your long-term financial partner by helping you grow your business and fleet.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.
Very professional! At the beginning I was very skeptical because of what I was doing. I’m just a poor boy from the south. Trevor kept me informed on everything,(most of the time I dreaded to hear from him ,but he was great) he can make things happen!!!!!!!! I have big dreams in the dump truck world and Trevor give me the opportunity to get something newer and more reliable!! He’s in California and I’m in Alabama and he made my dreams come true. I would love to go have a beer or margaritas with this guy anytime!! Thank you
Worked with Top Mark for the purchase of one truck last November, overall pretty good experience. I would have liked a bit more detail of the financing aspect because it was a bit confusing at first, but honestly i would use them again if i ever needed anymore trucks. Definitely a company i would recommend to someone that wants to finance there 1st truck!
Worked with Brian Perry for a few days to purchase a second moving truck and he was swift and responsive. However halfway through financing, the person who was helping me invest in this truck decided they would buy the truck outright and we would make payments to them instead to bypass interest etc. Brian was understanding in a what I am sure was an annoying situation and there was no problem getting the $1,500 initial documentation fee refunded to our account. If I ever found myself needing financing again I would use this company.
Be sure to ask for Mitch or Nick. They were amazing to work with. They made the process so easy, I never had to get out of my truck. 10/10 review for these guys and the company, I'll be back at Top Mark for my next purchase.
We had the best experience buying our very first Truck. Rob was extremely helpful I cannot fully express how grateful we are. He was checking on us thru the entire process. We were getting texts, calls emails. The guys at the accounting department were also very helpful. We are 100% coming back to do business with this company.
Outstanding work thank you Dave Bolce was there with our company ANO Landscaping on getting financing for a mini excavator everything was quick and easy not complicated not making me jump through hoops highly recommended for anybody looking to refinance equipment
Nick Gilmore at Top Mark Funding is exactly the kind of person you want in your corner when it comes to commercial vehicle financing. From day one, Nick made sure I was taken care of every step of the way. He didn’t just handle the financing – he helped me understand the entire process. When I hit roadblocks or wasn’t sure where to start, Nick stepped in, got the kinks ironed out, and made sure nothing slipped through the cracks.
In this industry, having someone who knows how to get things done and genuinely cares about helping you succeed is invaluable. Top Mark Funding, with Nick leading the charge, delivers a true partnership. If you’re looking to fund commercial vehicles and want to work with a team that’s got your back, Nick Gilmore is your guy!
This is my 2nd Commercial Loan to purchase a Box Truck for my new business. As a new entity in business, it is very difficult to acquire credit , with out past credit history. Not with TopMark Funding. My Loan Officer , Damien came thru in every aspect. Returned calls , rapid application process, was approved and processed funding within a few days. Damien also follows up almost weekly, to check in on how I'm doing in my new venture. I highly recommend Damien at Topmark Funding for your next loan. Great Experience!
Mitch at TopMark is unstoppable. He helped get me a loan when others could not make it happen. It was my first truck and i don't know how I could have gotten a loan without Mitch and his hard work and tenacity. The rest of the team at TopMark is efficient and knowledgeable. They answered all of my first timer questions with ease and patience. I would recommend him and the team at TopMark to anyone looking for Truck financing.
100 percent recommend!!! Mitch helped me even with a couple of issues that came out on my report. Was always able to find a solution to my problems and got me into a truck fast!! Don’t second guess him!
Mitchell was very supportive during my purchase. I was a bit apprehensive but he did a great job explaining all the details of my purchase. He even took the time to follow up after the deal was complete. I am thankful that they were able to assist in the growth of my company.
