Commercial Truck Financing

First, there are the captive finance companies. Think of them as the financing arms of all the major manufacturers. They exist solely to provide business financing to the public in an effort to sell their Ford trucks. In the past, they have been somewhat liberal in their underwriting criteria and like the mortgage industry perhaps too liberal. This relaxed underwriting of the past has caused serious defaults today. This has resulted in a subsequent tightening of credit. The end result is the selling of fewer Ford trucks and trailers; customers have a harder time getting financing. Nonetheless, the captive business financing company will always be part of the commercial ford trucks financing game.commercial

Second are the independent financing companies. They are not tied to the manufacturer in any way. They exist to make a profit from financing commercial ford trucks and other equipment. They can be a welcome alternative for several reasons. First, they can be someone to turn to if a good credit customer is “tapped out” with the captives. This means they have already financed ford trucks with the captive financing companies and they don’t want to do any more for the customer (at least for now). These “A” credit sources are competitive on rate with the captives and, using different independent sources, a customer can finance an unlimited number of Ford trucks.

While selecting a car finance broker also ensure you know about their range of lender accreditations. The range of accreditations held by a broker governs the range of options they can offer. You must note that a broker’s accreditation can not just change the range of finance options available to you, but it may even affect the quality of those options.

Experienced Staff

You must choose car finance service that recruits and retains professional and knowledgeable staff. The broker must be an experienced professional who can demonstrate and explain about why a particular product is highly recommended or even suites your specific circumstance. If possible make sure you even ask for testimonials from previous clients that in turn may help you in the confirmation of their experience.

Services Offered

As mentioned earlier, today there are many financial services available in the market. Therefore, you must find out more about any extra service that a broker can provide. You should expect your financial consultant to supply detailed information about time frames, and any fees or extra charges related to your finance. The key point is if a broker is being able to clarify the comparison rate of your recommended vehicle finance and the overall cost of your finance package then it is a quality sign of a good finance broker.

These are some important points that can help you in choosing your car finance services easily. Today a lot of responsibility goes along with buying a car and taking financial help through a car broker. Just taking care of few essential steps can help you select your car broker and further purchase a nice new or used car.

Independents are great for other reasons too. Say a customer wants a TRAC lease with different parameters than what the captives are offering. They can search for an independent that can tailor a TRAC lease for that customer. This is invaluable for the more sophisticated customer that has tax structure as their main objective. Here’s another one, we have customers calling us all the time that may only work nine months out of the year. They need financing that can offer skip payments. This way the customer can make nine payments a year instead of twelve; taking three months off of making their payments. One last one that hits home with us, the customer with bad credit. A captive financing company generally works only with people with good credit. For the customer with bad credit, their choices are limited. Thanks to independent financing companies (like ours) that specialize in customer with bad credit; these customers can get the financing they need to start or grow their business. Think of independent financing companies as offering financing products that can accommodate almost any need.financing

The third financing arm for commercial truck financing is the in-house financing program. Usually offered by the smaller vendor, in-house financing offers benefits for both dealer and customer. By offering financing in-house the dealer is able to move more inventory than if he didn’t. This is important because a smaller dealer doesn’t always have a captive finance program. And with credit tightening up the independent financing companies are becoming less important. The dealer can act like an independent financing company by offering all the same products while keeping the benefits of earning interest on the trucks they sell. The bad side, of course, is they also suffer in the case of defaults where the customer stops making payments. The benefits to the customer are they have a one stop shop where they can finance a Ford trucks at the same place they are purchasing it from. The downside is they are limited to their inventory.truck

This information will help you become a more educated consumer. By know who the players are you can better approach how to finance that commercial vehicle. Good luck!