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Dump Truck Financing
“Do You Need To Finance a New Or Used Dump Truck?”
Dump Truck financing is available through different forms of transportation equipment financing including equipment loans and equipment leases.
Transportation equipment leases are by far the most popular form of financing for new or used dump trucks or any type of truck for that matter as lenders prefer to own the asset and lease it back to the business owner. In the event of default, the financing company can take action to secure the dump truck and resell it to get the financing amount repaid. Unlike other forms of equipment that need to be disassembled and reassembled, a dump truck can easily be put up for sale and resold.
The advantages to business owners that want to acquire this type of asset is that there are going to be several options available to you even if you don’t have perfect credit/
For used dump trucks, the financing requirements are likely going to be tougher in most cases with more of a down payment required compared to financing a new piece of equipment, higher rates, and repayment terms shorter as well. And the older the use dump truck asset, the tighter the financing requirements are likely to be. That being said, dump trucks, especially heavy duty models, can retain their value for long periods of time and also retain their lending value as well. Basically as long as their is good value for specific used equipment in the resale market, there is likely going to be a equipment financing alternative to consider.
Get Dump Truck Financing That Meets Your Needs
One of the key decision many business owners need to make where a fleet of dump trucks is being financed is whether they should lease to own or lease to rent. With the later, the strategy is to enter into operating leases where at the end of the lease term, the asset is returned to the leasing company without further obligation and a new operating lease is entered into on a new piece of equipment. The focus near is to forgo some of the paid equity in the dump truck in order to also forgo further repair and maintenance expenses that are likely increase as the unit gets older. The lease to own strategy is more like an equipment loan where the intention is to purchase the dump truck at the end of the lease and own it longer term and take on the responsibility of the ongoing costs and maintenance in the years to come. Which strategy to employ will depend on the level of annual use for the dump trucks as well as how efficiently the business is set up to deal with ongoing maintenance and repair in a cost effective manner.