Tractor Loans for Bad Credit

If you are a professional driver and you want more control over your professional future, then you ought to have your own tractor-trailer. This may require you to apply for a tractor loan but you can rest assured that it’s worth it. There are many drivers there were able to start their own tractor businesses because they don’t just rely on using tractor trailers that are company owned. Meanwhile, there are others that are able to apply for positions where companies require drivers to have their own tractor trailers. There are many drivers however that have not so good credit score and because of this purchasing a tractor trailer with bad credit is next to impossible, but still not impossible. Even with repossessions, bankruptcies, or collection accounts on your credit report, there are still ways to buy a tractor trailer.

Firstly, go and look for great deals on tractor loans in your area. You can browse local newspapers, classified ads and internet sites. A local trucking website community might also be a great place to look. Surely there’ll be posts from tractor owners that would want to sell their tractors.

When you find one that you like, contact first the owner. Honesty will go a long way and be sure to explain your credit situation, offer to make a large down payment and ask for financing from the owner. If you have any old or incorrect items damaging your credit report, show the tractor owner that proof that you have already settled them as proof of your good faith. You can suggest that you are willing to set up automatic bank transfers for your monthly payments and that you can provide proof of income and employment if they need more reference.

Every transaction or agreement should be properly documented for future reference or in case of any legal disputes that may arise. Prepare a sales agreement between you and the tractor owner to be facilitated in your loan for tractor. Be sure to indicate that exact amount of your down payment and your regular monthly installments. You should also state the due of the monthly payments together with an agreed payment method. Have all documents notarized to complete the transaction.

If you are employed, you can try to talk to your employer about buying the tractor trailer that you are currently entrusted with. This can be a win-win situation for you and the company, who’s usually looking for ways to replace their older equipments with new ones. Employer financing is a low or zero interest alternative compared to tractor loans. If you can, offer to make a down payment to lessen the amount that you need to finance.

Still be sure to have the payment and due dates indicated in the agreement document that you will sign together with your employer. Employers usually put a clause that allows them to take possession of the trailer when their employees resign even before the loan is finished. Ensure that all payment terms and amount are properly negotiated between you and your employer.