If you’re looking to buy or lease a truck, van, or SUV used as a work vehicle, you’re likely to have to get auto refinancing. Use this guide as your go-to resource to help you through the steps of your loan process and ensure that you get the best deal possible. Let’s jump in.
Finding a Lender
Finding a commercial vehicle lender is one of your biggest challenges in financing. As you’re considering which lender will best fit your needs, consider all of your alternatives and be open-minded about who might be able to provide you with financial support.
You can start by searching online for lenders specializing in commercial vehicle loans. You can also speak with banks, finance companies, and even leasing companies about financing options for your vehicle purchase.
Establishing Your Credit
If you’re buying a vehicle with a loan, you need good credit. Bad credit can make auto loans extremely difficult, especially with used cars that could depreciate quickly. However, buying a pre-owned car might be in your best interest if you can’t get a loan or financing through your bank or credit union.
While accepting a lender’s terms immediately can be tempting, don’t shop around for better terms with other lenders or pay cash. There are many different ways to finance a vehicle purchase—and remember that your monthly payments need not come directly from you; they can come from an asset (like your 401(k)) if you already have enough money saved there.
Once you’ve made your decision and you’re ready to take delivery of your new vehicle, don’t be surprised if you still have some questions. Your financing team will want to know where you are taking delivery, and they may even provide further instructions for a smooth process.
Understanding the True Cost of Ownership
Always consider all of your costs, not just what you’ll pay in up-front costs. For example, think about how much it will cost for gas and maintenance over time before you purchase a vehicle.
Refinancing a Car Loan With Bad Credit
There are many perks to auto refinancing. For example, according to Lantern by SoFi, “Refinancing your loan may result in lower payments each month if you decide to extend your loan term.” Also, it can take as little as a few minutes to apply for refinancing. After receiving your application, a lender should respond within a day or two about your interest rate and the terms of any given loan offer.
You can also get a cosigner or co-applicant if you don’t have good credit scores and records. Having an experienced and qualified cosigner will also help get you approved if your debt-to-income ratio is too high for traditional financing.
A commercial vehicle loan could be an option if you are looking for an easy way to finance your next vehicle. However, as with any type of financing, it is important to understand your options and shop around for loans before settling.