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Factors that Will Impact Your Monthly Truck Payment

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Arrow Truck Sales

Buying a semi-truck is about more than buying a new mode of transportation; it’s also an investment into your career, and a step in securing your business’s future. But that investment is far from a small one, with even used semi-trucks costing close to $100,000. Few people have that kind of cash up front, so they have to finance their truck and make a monthly payment. How much will that monthly truck payment be? There are several factors that will determine that final cost. Keep reading to learn what they are.

The Price of the Truck

The most obvious factor that will influence your monthly payment is the actual cost of the semi-truck you’re buying. Most semi-truck loans will spread out that cost over a set number of months. So, the higher the price on the price tag, the higher your monthly payment will be when spread out over the same time period. It’s a good idea to get a quote on the monthly payments on any truck that you’re interested in before you actually buy, so you can ensure you’ll be able to make those payments on time.

The Cost of Any Added Fees

It’s important to keep in mind that the price on the truck is rarely the only cost that goes into your loan. There can also be items tacked onto the total cost, such as loan origination fees. Depending on who is financing your loan, you may also be able to get your insurance, extended warranty, and other add-on costs rolled into that monthly payment. Ensure that any quotes you receive regarding your monthly payments include all of the added fees so that you’re not left with any surprises when the loan is finalized.

Your Credit Score

Any time you receive a loan, the lender will perform a credit check. Your credit score is used as a way to determine the likelihood that you will repay the loan on time. The higher your credit score, the better your reputation for making timely payments; that behavior is then rewarded with lower interest rates from lenders. So, if you have a good credit score, you can likely lock in a lower interest rate on your truck loan. This will bring down your monthly payment, as well as the total amount you’ll pay over the life of the loan.

Who Your Lender Is

Of course, different lenders can offer different terms, and those terms will also impact the monthly amount you have to pay on your truck. For example, a dealership that specializes in commercial truck sales may offer reduced rates and more beneficial loan terms than a financial institution, as an incentive to finance through the dealership. Be sure to be on the lookout for these kinds of deals.

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