Buy a Used Commercial Truck
Buying a used commercial truck is a great way to start your business, or upgrade the equipment you have in your existing business. Every commercial truck is different when it comes to features, safety and price, so you will have to decide what kind of truck will work best for your business. While used trucks are more affordable than new trucks, you will also have to set a budget and decide how to finance your purchase. Buy a used commercial truck by finding the one you want, having it inspected and deciding how to finance it.
Contents
Steps
Finding a Used Commercial Truck to Buy
- Look for used commercial trucks online. Reputable sites include truck paper, UsedTruckListings.com and eBay Motors.
- Search local advertisements online as well. You might find private sellers who have commercial trucks on Craigslist or through the sites run by local car and truck dealers.
- Check the inventory at local truck dealers. Your newspaper or community directory will provide a list of car and truck dealers in your city or town.
- Talk to the dealer about what you are looking for and be sure to explain that you are interested in a used truck. Test drive anything that you like.
- Inquire about commercial trucks for sale with truck rental companies. You can start with companies such as Penske, Enterprise or Budget Trucks, which offer trucks that they have used as rentals for sale.
- Go to an auction. Automobile auctions will often include commercial trucks. Dealers in your area will know when auctions are scheduled.
- Choose a truck that meets your business needs and has a good safety record. The dealer you buy it from is required to provide you with information on whether it has been in accidents or had extensive mechanical work done.
- Determine the value. Once you choose a truck to buy, research what it is worth before you make an offer.
- Find value estimates through Kelley Blue Book or NADA Guides. Use their websites to search for value by make, model and year. You can also use these resources to get information and customer reviews on the used truck you are buying.
- Get the truck inspected by a professional mechanic before you buy. You want to make sure it is safe and in good working order.
- Reconsider the purchase if significant repairs are needed or safety issues are indicated.
- Negotiate a price with the dealer or seller. Use the estimated value and the inspection results to get the best price for the used commercial truck you want to buy.
Financing a Used Commercial Truck
- Decide on a bank or lender for your financing. Most used commercial trucks cost between $30,000 and $250,000, depending on the truck. Use a lender you have worked with before, or a company you know is reliable and respected.
- Make a down payment. Most lenders will look for at least 20 percent of the purchase price as a down payment.
- Balance your down payment size with the cash needs of your business. While a larger down payment will mean a less expensive loan, it will also take extra cash out of your daily business operations.
- Provide financial documentation that is needed. This will include your CDL license, proof of income, financial statements and a good credit report.
- Settle the payment terms of the loan. This will include the amount of your monthly payment, the length of the loan and how much interest you will pay until the loan is paid off.
- Provide all of the required information on the dealer you will be purchasing the used commercial truck from. The lender will likely pay the seller directly.
Tips
- Consider leasing a commercial truck if buying a used truck is still too expensive. A lease rarely requires a down payment and you can deduct your lease payments on your commercial taxes.
