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Industry experts offer insight into the various options available for financing a trailer. Below, we provide you with some tips to help you get the best deal on financing your new equipment!
Dealer financing. The easiest way to finance your trailer is through the dealership where you plan to purchase it. Most dealerships have finance departments that can help you secure a loan. The advantage of this option is that the dealership will likely have relationships with multiple lenders, giving you access to more options. Additionally, the dealer may be able to offer special financing rates or promotions.
Bank or credit union financing. Many financial institutions offer loans specifically for equipment, including trailers. You can either apply in person or online, and the loan process is generally straightforward. With this option, you'll likely have a fixed interest rate, which means your monthly payments will be consistent throughout the life of the loan.
Personal loans. If you have good credit, you may be able to secure a personal loan to finance your trailer. Personal loans typically have higher interest rates than other financing options, but they can be a good choice if you want more flexibility with your loan. For example, you may be able to pay off the loan early without penalties or make additional payments to reduce your interest charges.
Home equity loan or line of credit. If you own a home, you may be able to tap into your home's equity to finance your trailer. A home equity loan or line of credit (HELOC) allows you to borrow against the equity you've built up in your home. These loans typically have lower interest rates than personal loans, but you'll be putting your home up as collateral. This option should be carefully considered before pursuing.
Here are a few companies we found, with great reputations, that cater to equipment financing.
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Crest Capital is an equipment financing and leasing company, based in Atlanta, Georgia. It was reviewed by Business News Daily and Business.com as best equipment financier of 2020, and by Investopedia as best overall equipment financing company of 2021. This lender caters to larger sand & gravel companies that run their own fleet.
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TimePayment is a reputable equipment financing provider with experience in financing trailers. They offer tailored financing solutions, including lease-to-own options, for end dump trailers. TimePayment focuses on providing flexible financing options for businesses of all sizes, including new businesses.
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Truck Lenders USA is a well-known financing company that has received numerous positive reviews from satisfied customers. They are known for their expertise in the unique needs and challenges faced by trucking businesses. They work with a network of lenders offering various options, competitive rates, and negotiable terms that cater to owner-operators, small businesses, and fleet financing.
When you buy a Hicks, it pays for itself.
For example, your steel trailer weighs 12,500 lbs. It's in fair shape and would easily sell for $25,000. There’s a new trailer that only weighs 10,000 lbs, and costs $75,000. Monthly cost for upgrading would be about $830. But, now you can haul 2,500 lbs more material. Conservative data tells us you make about $6.00/year for every pound you haul. The 2,500 lbs will add about $15,000 in revenue, or, $1,250/month. It's a cash gain right out of the gate.
We wish you the best of luck with purchasing your new equipment! Happy trails from Hicks Manufacturing, LLC!
