Are you in the market to buy a new or used truck? Trucks have become one of the fastest growing vehicles to excel in the auto market world, due in no small part to the innovative designs that have taken them from humble utility trucks to stylish modes of transportation.
Of course, there is a lot to consider when you’re making a huge investment. Using a the repayment calculator is one of the easiest ways to predict future payments you may have to pay when financing a new truck. However, before using the calculator you have to carefully think about what type of truck is best suited to your specific needs. Do you need something stylish that can officially replace your current vehicle that will blend in seamlessly with your work and family life or are you in the market strictly looking for a utility vehicle? Now you must consider the budget. How much can you truly afford; should you consider only purchasing new models or should you focus entirely on the used trucks market?
Finally and most importantly, how are you going to pay? There are critical questions to ask such as what financing options are available and how you are going to find a loan that will not become a huge financial burden down the road?
What You Can Afford
When I need truck finance, I must first ask myself, what can I afford monthly? The usual rule of taking a loan is that the total monthly cost of your vehicle payment should never exceed 20% of your total monthly income. Of course, this assumes you have a steady income that is unlikely to experience any setbacks over the next few years. It is also great to remember that the average length of a truck loan is almost 60 months, so you should make sure that you have a dependable income for at least the next few years.
There are countless lending options when it comes to financing your truck, but the most reliable sources of financing can be put into two basic categories – dealer financing and direct lending. As with many things in life, there are pros and cons to each, and only you can decide which path to go down when it comes to you and your current/future financial situation.
Loan lengths and amounts, as well as the terms and conditions, can vary significantly over these lending platforms. You should be careful when considering all aspects of any loan agreement before you sign on the dotted lines of any contracts.
Banks tend to have quite conservative lending policies, which is why it can sometimes be difficult to obtain a truck loan from a bank, especially if your credit history is in any way compromised. Although in most cases if you are a long time customer with a decent credit history, your local bank can be a superb source of affordable financing.
You will most likely be able to apply directly through the banks online services and check if you fit the general qualifications required to secure any funding. However, make sure you handle the final application process in person at the local branch. By applying in person, it will give you the opportunity to negotiate for better terms and you can ask the member of staff directly to clarify any sections of the lending agreements that you are unsure about.
Almost all truck and automobile dealerships work in conjunction with automakers, credit unions, and independent lenders to secure affordable financing for their customers. In most cases, these options will be presented with customer incentives like ‘no deposit necessary’ or ‘no interest for a year’. Some truck dealers may offer lower prices if you agree to opt for local financing, though it is important to ensure that the interest rate remains competitive.
Truck dealerships can also be a bit more understanding when it comes to securing loans for clients with tainted credit. On the other hand, it is important to note that as attractive as dealer financing sounds, dealer loans typically lead to larger administrative fees, higher interest rates and more restrictive terms and conditions.
Driving Into the Sunset
Acquiring a vehicle loan may seem quite daunting at first; however, using a truck loan repayment calculator is the best way to find the finance or lease terms that best suit your needs to purchase the truck of your dreams. Buying a truck does not need to be complicated. Start off by researching all the lending opportunities that are open to you, then find a lender that you are satisfied with, understand all the terms and conditions and your responsibilities as a borrower before signing any agreements. By following these few simple guidelines, you can purchase a new truck in no time.