Trailer Financing Guide
Trailer financing is a strategic buying approach, which allows you to give a down payment and subsequently make recurring payments, instead of purchasing a rig outright. The biggest advantage of this is that you won't need to save up a large amount of money to cover the full cost. Keep reading to learn about cargo trailer financing. If you have any questions or want to check out our inventory, get in touch with us at True Value Trailers & Power Equipment in Penrose and Florence, Colorado.
Get the Trailer You Need
Some cargo and utility trailers are expensive, especially the latest models that are packed with several great features. If you are on a tight budget, it might be difficult to buy a trailer by paying the full amount upfront. When you finance a cargo trailer, however, you can take the rig home as soon as possible. Use your trailer for your hauling jobs while you pay it off over the next few years.
Establish a Budget
You’ll want to start with establishing what you can afford to pay month after month. After all, you don’t want to buy something at the cost of hurting your finances. Some key payments you’ll need to think about are the down payment, as well as monthly payments with interest. There are online loan calculators that will help you figure out what a good price range is for you. Often, they’ll come with a standard interest rate that you can adjust based on the offers you’re looking at. Check out some of the common prices and then set a solid range that allows our sales team to help you find the right model for you.
Qualifying for a Loan
As with any loan, there’s a qualifying process you’ll need to go through in order to get a trailer loan approved. It’s important to note that many trailer financing options will require a slightly higher score than you might otherwise need. There are several things they’ll probably ask for, but every step is important to ensure you’re getting the best financial plan. This can include:
- Your credit score.
- Your credit history.
- Your debt-to-income ratio.
- Your down payment.
- Age of the cargo trailer.
- Price and value of the trailer.
Types of Loans
There are two main types of loans you can qualify for. A secured loan is easier to obtain with low credit, and they have high loan limits, long repayment terms, and lower overall rates. However, the lender will often use your cargo trailer as collateral, so defaulting on your loan can get the rig repossessed. Unsecured loans require higher credit scores, have shorter repayment terms, and higher rates. On the plus side, they won’t take your trailer if you default on the loan. However, there are still consequences, such as penalties, lowered credit scores, and even lawsuits.
We hope that this trailer financing guide has been useful. If you have any questions, don’t hesitate to call us at True Value Trailers & Power Equipment in Penrose and Florence, CO. We proudly serve all our patrons visiting us from Pueblo and Colorado Springs.