May26

The 411 On Commercial Vehicle Loans

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According to FinanceSource.com, commercial vehicle loans “usually involve fleet funding services or commercial lenders who give more faith and power to a business simply because it is a business.”

However, there’s a caveat: they also possess higher interest rates. The redeeming factor is that there are “fleet-funding deals or specials that are offered” for buying several vehicles. Dealerships would provide special offers for commercial deals because a bulk purchase or lease always brings a profitable bottom line.

Currently, there are a number of lending companies who provide commercial vehicleloans. However, fulfilling the pre-requisites to obtain one can take a bit of work.

Here are some of the pre-requisites for borrowers, as elaborated by StreetDirectory.com:

  • proof of income
  • credit history
  • a valid driver’s license
  • proof of billing, bank statements and tax returns

For first-time buyers, interest rates may vary depending on credit history, type of vehicle (whether new or used) and loan period.

Commercial vehicle loans are usually offered for a period of 1-4 years. Simple interestloans have interest rates that are determined by the principal amount.
There are two ways to avail of commercial vehicle loans: through direct or indirect financing. Direct financing if provided by banks or lending institutions while indirect financing can be obtained from dealers.

Here are some key tips from FinanceSource.com for those seeking commercial vehicleloans:

  1. Approach companies that have an established reputation and the know-how when it comes to commercial lending and fleet vehicles. Look for a reputable lender with the most reasonable interest rate and a loan that you can afford.?
  2. Compare interest rates. As previously discussed, commercial loans usually have higher interest rates but the deals that come with them are worth the investment.
  3. There are a number of commercial loan services online to choose from, so make sure to do your homework first and weigh in on the benefits and disadvantages before making a decision.
  4. Unless your business credit is on the rocks, make sure to use your business information to your advantage in order to get the best deals.

?Sierra Chrysler Jeep Dodge located in Monrovia, CA in Los Angeles County is thehighest reviews CJDR dealership in Southern California per google reviews. Check us out on Google or give us a call at (888) 805-2075 if you have any questions about your next vehicle buying experience. We take pride in providing a service to our community and providing people with a good experience whether it is buying cars, parts, or getting their vehicle serviced.