First, captive finance companies. Think of them as the major builder finance arm. They exist only to provide public financing in an effort to sell their trucks. In the past, they were a liberal both in their underwriting criteria and the mortgage industry may be too liberal. This relaxed underwriting past caused serious violations today. This led to a subsequent curing of credit. The end result is selling fewer trucks and trailers; customers have more difficulty in obtaining financing. However, the captive finance company will always be part of the game of financing commercial trucks.
Second, there are the independent finance companies. They are not bound to the manufacturer in any way. They are there to make a profit from the financing of trucks and other equipment. They can be a welcome alternative for several reasons. It may first be someone to turn to if a good credit customer "delivered" to the captives. This means that trucks have already funded with captive finance companies and not do more for the client (at least for now). These sources of credit "A" are competitive in speed with the captives and the use of different independent sources, a customer can finance an unlimited number of trucks. Independents are great for other reasons too. Say a client wants a lease TRAC with different parameters that captives offer. They may seek an independent that can accommodate a TRAC lease for this client. This is of great value to the customer the most sophisticated tax structure that has as main objective. Here's another, we have customers who call us all the time, we can only work nine months a year. They need to offer financing payments jump. In this way, the customer can make nine payments per year instead of twelve; with three months off to make their payments. A final that hits home with us, customers with bad credit. A captive finance company usually works only with people with good credit. For customers with bad credit, your options are limited. Thank you to finance independent companies (like ours) who specialize in clients with bad credit; these customers can get the financing they need to start or grow your business. Think of independent finance companies offering financing products that can accommodate almost any need.
The third financial arm for the commercial truck financing is the funding program. Generally offered by the smallest provider in the local financing offers advantages for dealers and customers. By providing domestic financing of the distributor is able to move more inventory that if he did not. This is important because a smaller retailers do not always have a captive financing program. And with the credit crunch independent finance companies, they are less and less important. The distributor can act as an independent finance company offering the same products while retaining the advantages of earning interest on trucks they sell. The downside, of course, also suffer in the event of default the customer stops paying. The benefits for the customer is that they have a one stop shop where you can finance a truck in the same place they buy. The problem is limited to its inventory.
This information will help you become a more educated consumer. Knowing who the players who can best address how to finance the utility vehicle. Good luck!
