Truck financing presents the same problems as financing other vehicles - it can be difficult, confusing and frustrating. There are plenty of unscrupulous dealers looking to take advantage of people who either don't know what they want, how the process works, or what's involved. But there are a few ways to ensure you steer clear of bad deals and dodgy dealers - follow these five tips for a successful and stress-free road to financing your new truck.
1. Clear your credit history
Obviously, your credit history plays a huge part in the process of applying for truck financing. So make sure yours is in good working order. A good credit history can shave significant amounts of interest off of your loan, so it's worth building it up back to full strength if it's not as good as it could be. If you've already got a stellar credit history then great - this will only make the financing process easier.
2. Save for your down payment
Bulking up your down payment sounds like an obvious one, but so many people don't realise how much just a little more of a deposit could save you. As truck financing is calculated on interest, a slightly larger down payment can reduce the amount you pay back overall by about 2%. This doesn't sound like a lot, but in reality it can save you a fair amount of money.
3. Get pre-qualified
This is another great idea that can save you a lot of time and money down the line. Getting pre-qualified simply means have your credit score and finance application checked and verified before you start looking at trucks. This means you will know what you can afford and what deal will be best for you. It also means that truck dealers will know you are serious about purchasing, and may be more open to negotiation on any deals.
4. Contrast and compare
There's nothing stopping you from applying to a host of truck financers, and there's no obligation to proceed with any of the applications you make. You can use this to your advantage. Making a number of applications for truck financing means you can contrast and compare the offers, and see which one is the best deal for you. You could even take these deals to other financers and see if they can beat them, it's a great way of getting the price down.
5. Play the waiting game
Don't expect it all to be wrapped up in one day. It may well be, but truck financing can be a long process - so be prepared to wait. This doesn't have to be a negative, though; waiting could actually do you some good. Take time to think over the deals you're offered, as it's best not to rush into anything and get caught out. You may also notice deals and offers coming up in the future, which can save you a lot of money if you're prepared to wait for them.