“Off Highway Truck Lease Financing Solutions”
Off highway truck leasing is available for both new and used trucks.
Because there can be a considerable amount of variability with this type of asset in terms of acquisition cost, effective financing rate will also be effected in that larger financing requirements can typically command better or lower effective financing rates.
At the same time, the amount of overall financing the business is carrying for their off road truck inventory can also impact their ability to secure equipment leasing from different sources.
For instance, for small scale business operations, it may be fairly straightforward to lease one or two trucks at the same time, but when you get to five or six units, the overall financing debt load can impact ability to get the next unit financed.
This will be less of an issue with larger companies that have a higher level of cash flow and retained earnings.
Used off highway trucks can also be financed via a transport equipment leasing facility.
Because of the potential long useful life of some of these assets, its not uncommon to see financing provided on units greater than ten years old.
As long as it can be determined that the remaining useful life of the asset is more than the proposed leasing term, there is a good chance financing can be arranged.
For used truck lease financing, you will also need to put down a deposit between 5% and 20% depending on the individual lender’s requirements and assessment of the deal.
Used Off Highway Truck Lease Financing Will Require Condition And Value Reports
When trying to secure lease financing for a used truck, you are going to need to provide a detailed specification and condition report, potentially from a third party mechanic, to show proper disclose to a financing source as to the exact current condition of the asset.
In addition, the lender or leasing company may also require a third party equipment appraisal, especially when the value is greater than $100,000 and the age is greater than 5 years.
If you are looking to acquire a new or used off highway truck and would like to better understand your financing options, I suggest that you give us a call for a free lease financing assessment