When considering a truck or trailer purchase, often one of the biggest misconceptions is when to seek financing. If you think about it, more often than not, it’s the monthly payment that will dictate the make, model and mileage you should consider. So, which comes first, the vehicle or the financing? This chicken-or-egg conundrum confronts everyone financing their purchase, and it will surprise you to know that it should also be a principle consideration for those that can afford to pay cash. Let’s face it, knowing your purchasing power will dramatically focus your search, save misspent time, and could lead to uncovering a few diamonds in the rough.
If you work with the right lender this is False. Some will do a soft-pull when underwriting a conditional approval . However, be careful, many lenders will do a hard-pull on your credit which may have a short-term impact on your credit score and in rare cases impact the approval. So ask up front how they’ll pull your credit.
False. Why do you think the most profitable companies in the world finance equipment purchases? The answer is simple. Cash is king. Cash reserves allow businesses to be strategic and react in a timely fashion to money making opportunities. You never want to invest your cash in a depreciating asset like a vehicle. Additionally, financing asset purchases help businesses avoid higher tax brackets and establishes a credit history which will lead to higher approvals and a lower cost of capital. Demonstrating credit worthiness is critical to business growth and long-term success. If you can afford to, we’d always recommend financing vehicle/equipment purchases.
So, if you’re thinking about buying a truck, tractor or trailer, we’d recommend starting your journey with a finance pre-qualification. Taycor Financial has been providing commercial finance solutions for over 30 years and is a trusted member of the commercial trucking community. They have a wide range of credit options and flexible payment terms across a broad array of vehicle classes. Pre-qualifying for financing is as easy as completing an online application and conducting a brief phone call with one of their trusted finance professionals who will walk you through your options and provide useful tips for finalizing the transaction. Best of all, the approval will last for up to 90 days.
Apply today and get your journey off to the right start!