You need to purchase a semi-truck, but your credit isn’t so good. Traditional lenders have turned you off several times, and you’re getting impatient. Considering the potential income you can get from a semi-truck without having it on a short-term lease no credit check, you need a viable alternative.
Then your friend tells you about some buy here pay here semi trucks available for sale from a non-conventional lender. From the information you have, the concerned financier has no problem dealing with individuals with bad credit. They do not, as much as carry out a credit check.
Hurray! You have found the perfect path to owning the semi-truck you have always desired. Like any other vehicle dealership, buy-here, pay-here dealerships stock a variety of vehicles from which you can choose one that works for you. Examples include Kenworth, Peterbilt, Freightliner, Volvo, Mack, Autocar, Western Star, International, etc.
But how do you get a semi-truck using the buy-here, pay-here method? This article explores one of the easiest ways to get a semi-truck with little or no credit. Keep reading for more information.
- What Exactly Are Buy Here Pay Here Semi Trucks?
- The 6 Best Buy Here Pay Here Semi Trucks Providers
- Benefits of Buy-Here Pay-Here Semi-Trucks
- Drawbacks of Buy Here Pay Here Semi Trucks
- Alternatives to Buy Here Pay Here Semi-Trucks
- Frequently Asked Questions (FAQ)
- The Bottom Line
What Exactly Are Buy Here Pay Here Semi Trucks?
A buy-here, pay-here semi-trucks are those which you can get from dealerships that provide inhouse financing. They are different from vehicles whose financing is an arrangement between the vehicle dealership and the lending company.
Traditional car dealerships do not have in-house financing. After selecting a vehicle to buy, the dealer contacts several third-party lenders with your information. If a lender approves you for a car loan, you will make monthly payments to them.
With buy-here, pay-here dealerships, the semi-truck buying process is very different. They simultaneously sell and finance cars from their lots. In addition to financing semi-truck purchases, they have no problem lending to individuals with awful credit.
The semi-trucks you purchase from buy-here, pay-here dealerships are usually used. Even though the dealership doesn’t do a credit check, it may ask you to prove your residence, income and make a down payment.
Since the semi-trucks from these dealerships and old and low-value, they usually attract much lower monthly payments than their brand-new counterparts. Based on your income, the dealership determines how much money they can give you as a loan. It then suggests the semi-trucks you can get. After making a down payment and the first monthly payment, you can drive off with the semi-truck and keep making regular payments directly to the dealership.
The 6 Best Buy Here Pay Here Semi Trucks Providers
There are various semi-truck brands you can have on a buy here pay here arrangement. Each semi-truck brand has a reputation in different aspects. Therefore, when choosing a semi-truck, pay attention to the following aspects:
- Resale value
- Life span
- Fuel options/fuel efficiency
While each of these aspects is important, no brand scores the highest possible marks. That’s why you should carefully consider which aspect is the most important before choosing a semi-truck. The following are some of the semi-truck brands you can get from buy-here, pay-here dealerships:
1) Freightliner Semi-Trucks
Freightliner semi-trucks are top-of-the-range and a favorite of most drivers in America. With a Freightliner semi-truck, drivers get the crew cab, sleeper, and day options.
It is equipped with 350 to 600 hp engines, and the trucks can handle heavy loads. Due to their aerodynamic bodies, Freightliners have one of the best fuel efficiency, saving your business money.
Freightliner semi-trucks are less expensive than Kenworth or Peterbilt vehicles. For an affordable price, you will enjoy all the benefits of having a fuel-efficient semi-truck.
2) Kenworth Semi-Trucks
If you want a semi-truck whose designers are trackers, then you should purchase Kenworth. Right from the design to performance, the truck ticks all the right boxes.
It features revolutionary navigation technology that provides a smooth driving experience. Regardless of how long your trip is, you will feel less stressed driving a Kenworth.
Compared to Peterbilt, Kenworth is a little bulkier and does not deliver excellent fuel efficiency. However, it feels sturdy, helping you tackle all road conditions with confidence.
3) Peterbilt Semi-Trucks
Its long nose defines Peterbilt’s iconic and stylish look. Even so, they are less bulky and lighter than Kenworth, seeming more manageable on the road – they are built from aluminum.
Peterbilt is much better than Kenworth in fuel efficiency, helping you drive for longer distances for less. It is also one of the safest semi-trucks you can drive anywhere.
4) Navistar International Semi-Trucks
For over a century now, Navistar International has produced some of the best semi-trucks in the United States, holding 11 percent of the market. It prides itself on standout models like the LT Series and LoneStar.
If you opt for International semi-trucks, you can pick a model depending on your needs. For the standout crosshatch grill design, the LoneStar is the best model, delivering livestock. On the other hand, the TranStar model is a lightweight semi-truck with the best fuel efficiency, excellent handling, and drivability.
5) Mack Semi-Trucks
Mack semi-trucks are some of the best in the world, boasting standout fuel efficiency. Its popularity puts it at number two in terms of sales behind Freightliner.
One of the most significant attributes of Mack semi-trucks is their advanced safety features. They come with GuardDog Connect functionality, which keeps drivers alert, focusing on the road ahead.
Apart from ensuring safe driving for its drivers, Mack semi-trucks are of the highest quality, featuring all-new technology.
6) Volvo Semi-Trucks
Even though one of the best international semi-truck brands, Volvo is little used in the United States. But that doesn’t mean it is worse off than popular U.S. brands such as Freightliner, Kenworth, and Peterbilt.
The manufacturer of Volvo semi-trucks is the same as that of the Mack. Since it is the second-largest semi-truck manufacturer in the world, Volvo delivers excellent quality. They are not only great to drive but also have a comprehensive support network.
Benefits of Buy-Here Pay-Here Semi-Trucks
If you get a semi-truck via the buy-here, pay-here option, you will get many advantages on top of there being no credit checks. Here are some of the benefits you will likely enjoy:
1) Certified Pre-Owned Semi-Trucks
Pre-owned semi-trucks usually have undergone a thorough full inspection and gotten the necessary repairs from the automaker. Therefore, they are usually “line-new” when you go to purchase them. Even though they cost more than other used vehicles, they have additional warranties, albeit short.
Instead of being sold “as is” the semi-trucks undergo thorough quality inspection, resulting in fixing all areas that need it. With that, a buy-here, pay-here semi-truck could be in the best possible condition.
2) No Credit Checks
When purchasing a semi-truck from a buy-here, lease-here dealership, you purchase and make loan payments with the same establishment. You have no requirement to get an auto loan from the bank, which might mandate a credit check.
The dealership is only interested in whether you can make the required weekly, bi-weekly, or monthly payments. Your credit information is only necessary for determining your annual rate of interest.
3) You Can Return if Unsatisfied
If for some reason, you are unsatisfied with the semi-truck you purchased, you can quickly return it to the dealership. That’s because most of these dealerships have an open window within which you can return the vehicle and get a full refund.
The return period can be anything between 24 and 72 hours, as spelled out in the agreement between you and the dealership. Before signing on the dotted line, go through the fine print to ensure you know what you’re getting yourself.
4) Possibility to Trade-In Your Old Vehicle
If you have a used semi-truck, you can trade it in at a buy-here, pay-here dealership and get a newer one. The company will conduct an appraisal to determine the vehicle’s value and help you trade in for another semi-truck. Apart from saving money, you end up making lower monthly payments for the newer vehicle.
5) Limited Warranties
Even though uncommon, some semi-trucks from buy-here, pay-here dealerships often come with warranties. These warranties are not the four-year or five-year deals you get from brand-new semi-trucks. Instead, they can cover six months or 6,000 miles, whichever comes first. If the vehicle is still under a manufacturer’s warranty, you can still enjoy it.
Drawbacks of Buy Here Pay Here Semi Trucks
Despite all the possible benefits of a buy-here, pay-here semi-truck, it has several drawbacks compared to conventional vehicle purchase financing. The following are the disadvantages of buying a semi-truck from a dealership with in-house financing:
1) Limited Semi-Truck Inventory
The variety of semi-trucks available from a buy-here, pay-here dealership is limited, preventing you from selecting the best possible vehicle you can have. Therefore, you do not have the luxury to stick to a semi-truck of a particular make, model, and age. You have to accept whatever the dealership has to offer.
2) Expensive Financing
Due to your awful credit, semi-truck financing with the buy-here, pay-here deals can be expensive. In most cases, the percentage interest rates can be six points higher than financing through a traditional bank.
Even though you’re purchasing a used car, you might end up paying much more for it than usual. That’s why you need to read the contract before signing it carefully. Unknowingly signing an expensive contract can tie you down to expensive weekly, bi-weekly, or monthly payments for years.
3) Hidden Fees
When purchasing a buy-here-pay-here semi-truck, some dealerships may fail to disclose everything involved in the transaction. Instead of assuming they will tell you, carefully read the paperwork for any hidden fees, including:
- Administration and handling fees
- Delivery fees
- Inspection or detailing fees
Before signing anything, make sure you know what you’re expected to pay, the interest on it, and the financing period. That way, the car dealership wouldn’t surprise you with unexpected charges.
4) Inconvenient Payment Schedules
Even though some buy-here, pay-here dealerships have flexible payment schedules, others can be very inconveniencing. They insist on weekly or bi-weekly payments, which might not align with your monthly earning schedule. Since you pay directly to the dealership, you have no choice on the payment method. Sometimes, you might have to drive to the dealerships to make payments in cash.
5) Compromised Privacy
When you purchase a buy-here, pay-here semi-truck, you can quickly lose your privacy. Over 45 percent of buy-here, pay-here dealerships often install tracking devices in their vehicles. They can track your semi-truck and even disable the starter if you default on the loan. Without warning, the dealership could repossess the vehicle and disrupt your business.
Alternatives to Buy Here Pay Here Semi-Trucks
When you have bad credit, there are several ways of getting a semi-truck. You don’t have to insist on seeking out buy-here, pay-here semi-trucks. Here are some alternative ways of getting a semi-truck:
1) Get Suitable Financing
Did you know that you can still qualify doe conventional car financing with less than perfect credit? If a bank cannot give you the money you need, approach a credit union. The latter usually view financing applications from people with bad credit more favorably.
Furthermore, you can approach lenders offering auto loans for people with bad credit. Even though their interest rates can be slightly high, these lenders overlook bad credit, waive down payment, or gradually reduce the annual percentage rate.
However, like any other form of borrowing, you should check that it is affordable enough for you. Consider aspects of the loan such as the length of the period, annual percentage rate, monthly payments, and the fees involved. Find out if the lender reports to credit reference bureaus to help build a more positive credit history.
2) Find a Co-Signor
If a conventional vehicle financier turns you away because of your bad credit, you can approach them with a co-signor. That can be a friend or relative with a commercial driver’s license and slightly better credit than you. When purchasing a semi-truck, lenders do not accept just anyone to act as a co-signor.
It has to be an individual with a commercial driving license and good credit. The co-signor does more than help you get financing. If you default on your monthly payments, the lender will go after them.
3) Save for a Bigger Down Payment
If you can afford to postpone your semi-truck purchase, take time and save for a substantial down payment. After saving enough money, offer the dealership a substantial down payment. You will not only increase your chances of getting approval but also reduce the amount of money in your monthly down payments.
4) Purchase a Pre-Owned Semi-Truck in Cash
Alternatively, you can skip taking any financing by saving money to purchase a pre-owned semi-truck in cash. On average, pre-owned semi-trucks are 30 percent less expensive than their brand-new counterparts. You can find lots of used trucks and their prices by doing a simple search online.
Purchasing a used semi-truck from a private seller may prove to be cheaper than a dealership. Later on, you might have to go through the vehicle transfer process yourself. Unlike purchasing from a dealership, you have to be careful not to be duped. Be sure to ask for a report showing the vehicle’s history. If you can, pay an expert to carry out an inspection.
Frequently Asked Questions (FAQ)
The Bottom Line
If you have low credit, getting buy here pay here semi trucks could be your only option. Mostly, these are certified pre-owned semi-trucks of considerably lower value. Dealerships in this sub-sector hardly consider your credit score before approving you for financing. You can return the semi-truck in the middle of the contract period and swap it for a new one.
However, getting a buy-here, pay-here semi-truck can be expensive. Lenders often charge interest based on a client’s credit rating. Apart from hidden fees, some of these contracts may have inconvenient payment schedules.