Does Your Business Need to Lease a Used Highway Tractor?For used tractor trailers, semi trailers, highway transport trucks, and other similarly described assets, the sources of equipment leasing have a fairly defined list of requirements they want to see before they will provide lease financing on used equipment. First, the asset needs to be less than 10 years old with a reasonable about of miles. The greater the miles, the more information is going to be required on major repairs and maintenance. Second, because the equipment is used, you can expect to have to put down anywhere from 10% to 20% of the purchase price as a down payment. At times, used equipment has been leased for less money down, but at the present time, most leasing companies are requiring more cash in the deals. Third, the operator is going to have to show a basic monthly operating statement to show how they are going to repay the lease. This should be supported by a contract or letter from the company or companies they are driving for. Fourth, most owner operators are required to own a house. Home ownership is less about security to the lender and more about stability of the borrower or at least that’s the theory. Fifth, the applicant is going to need to have decent credit. Fair to average credit can get you financed, provided there are good reasons why the applicant’s credit isn’t stronger. But weak to bad credit with an ongoing listing of late payments will likely lead to a lender decline. Transport leasing companies will finance used highway tractors to post bankrupt applicants, provided there has been some time since they were released from bankruptcy, that credit has been re-established, and that there are no late payments or issues since release. Get Used Highway Tractor Leasing That Meets Your Business NeedsFor weaker credit scenarios, additional guarantors will also be considered to strengthen the application. While this is by far a hard and fast list that all lenders and leasing companies will follow, it does provide you with a basic guideline to follow when seeking financing for used tractor trailer assets. If you have a leasing financing strategy you would like to discuss, give us a call and we’ll go over it together. |
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