It can be quite difficult locating any good financing opportunities in today’s market for a truck semi trailer, as the more conventional methods of obtaining financing, such as through banks and lending institutions have started drying up. It is next to impossible to find financing, much less good financing on commercial truck trailer.
Lenders have had to change their lending practices and that normally means the terms of a loan are out of reach for the average consumer. This has caused many people to turn to the locations where repossessions and off lease trucks and trailers are, which is called the secondary markets.
Surprisingly, these secondary markets are actually the same lenders that you were dealing with in the past, in most cases. It just so happens that many of these lenders now have an excess of inventory on their books and they desperately need to get those reefer trailers, dump truck trailers and every other piece of equipment back out on the road where they will make them some money. These in-house inventories are obviously non-income producing, which puts pressure on the lenders to make deals with consumers.
The deals offered can be either a lower price or perhaps a lower annual percentage rate, or sometimes it may be a combination of both. What happens is that customers will return off lease truck trailer rentals or perhaps their rented semi trailers, because their leases have expired and they did not want to go with the buyout option that is available at the end of the lease. Now the lender has to recondition the truck semi trailer or whatever was returned, and then they have to either re-lease them or sell them.
Some lenders will offer previous semi truck repossessions or off lease used flatbed trailers to buyers with a very low credit score, some as low as 525. This gives a new company the chance to start up or will give an existing business a chance to grow and expand, even with bad credit.
This kind of opportunity would not have even been considered a short time ago, nor would lenders have offered a company or individual with good references or a decent income to finance a truck semi trailer without having to go through a credit check. Perhaps there was a time when lenders would have offered an extended period of time to repay the loan but it would only have to been to someone with excellent credit, not fair credit.