Dump Truck Financing Options For Buyers

Dump truck financing is one of the more popular ways to acquire a truck due to how large a dump truck purchase is financially. When it comes to buyer’s financing choices, there are a couple of avenues to consider in order to secure a dump truck for your business. In this article, we will break down the different payment options for trucks and discuss the different paths you can take to finance a dump truck for your business.

Chat with us on what to expect during the dump truck financing process.

Side Dump truck financing options in the Midwest

When it comes to financing or leasing a dump truck, there are a few important points to consider. Whether you want to own the truck at the end of the payment cycle or lease only to upgrade or return the truck is dependent on your financial position and expectations of the truck itself. Below are some of the options you will have when it comes to different dump truck financing.

Buying vs. leasing side dump trucks

The decision to lease or finance a dump truck is dependent on the volume in which you use it. If you use your dump truck consistently but not in a super high volume, then leasing is the better option. You will have access to newer technology, and the cost will be lower since you are only using the truck in intermittent bursts. 

If you require long-term use that is high in volume, then financing a truck is your best bet. The wear and tear on the truck will make leasing more expensive, and the time spent using the truck will require a purchase, as leasing and overuse can get very expensive. If your business is very reliant on your dump truck, then financing through a loan is best.

Traditional financing loans

Traditional loans usually cover up to $500,000, depending on the truck. The terms of the loan will be based on your business’ credit and other financial factors. A loan that is shorter will offer you less interest but requires higher monthly payments. In contrast, a longer-term loan will accrue more interest but require much lower monthly payments.

Lease-Purchase Agreements

A lease-purchase agreement is a contract in which the buyer and seller agree to rent the truck. At the end of the rental agreement, the buyer must sell the truck to the seller. This could lead to lower monthly rates and less overall maintenance, but you are responsible for purchasing the truck at the end of the leasing cycle. This type of payment option for the truck can also be known as rent-to-own.

Financing for new vs. used dump trucks

When it comes to making a dump truck purchase, financing the truck through a loan is often more friendly for smaller businesses. Below are some of the aspects of loan financing you will need to partake in in order to secure your loan and the truck. 

Down payments and interest rates

The two key parts of a loan are the down payment and the interest rate on the loan. The down payment will vary from loan servicer to loan servicer, but this is the initial payment you put down on the loan. The larger the down payment, the lower your loan amount, which, in turn, will result in a lower monthly cost. The interest rate is the rate of pay accrued to the time of the loan and can be lowered due to your overall business credit.

Credit requirements and application process

Requirements for a dump truck loan often require a credit score of around 650 or higher and a preference of six months to three years in business utilizing a CDL license and having strong revenue. This financing is done through banks and other qualified financial institutions.

Structuring monthly payments

You can talk to your loan provider about how to structure monthly payments and what you can afford. If you need a lower monthly payment, then your loan will be longer. Your loan provider, Cvan, can provide different payment realities for all of your dump truck financings. The terms of your loan, the cost of the truck, and other financial options all come in the form of negotiating with dealers and lenders in your space.

Making informed financing decisions

Financing a dump truck can be a large yet important investment in your business. The value these tools provide is paramount to the success of several different industries, so financing one is a good idea when needed. Knowing the business case for the truck, having good credit, offering solid financial data on your business, and knowing which type of dump truck or trailer you need will all help you finance the best dump truck for your business.

Connect With A Side Dump Truck Dealer Near You

If you’re looking for innovative and reliable dump truck solutions, Side Dump Industries can help. Contact our dump trailer company today to create your custom dump truck solutions nationwide.