Buying a truck, SUV or Jeep is not cheap and if you have been saving from scratch and still unable to buy one of these vehicles outright, your next best alternative is to apply for a truck loan. While truck loans are quite affordable today in terms of interest rates, many banks have tightened and have raised the bar for who they lend to. For first time lenders and those with less than satisfactory credit can expect a difficult time.
However, even with tough times for banks, there are ways to get a loan for your truck, here are some tips.
Used Auto Dealers
Many times, those that have a tough time acquiring a loan have the best chance of being approved at a large dealership that also sells used vehicles. This is not the regular dinky used car dealer, but rather your large dealer manufacturer that also sells pre owned trucks, SUV’s and perhaps Jeeps. While you will probably pay more for the vehicle due to higher overhead, most of these dealers have already lined up financing and can have an easier time getting you approved.
Banks and Credit Unions
If you already have a bank you are using, this is a good place to start as well for a truck loan. This way the bank will already have a relationship with you and a very good indication of whether you are able to pay off the loan. In addition, if you or a family member is part of a credit union, you can also try these types of lending organizations. Credit unions generally charge very good interest rates and sole purpose is to help its members and community.
Get a Co-Signer
If your credit is less than stellar, one tip to consider is a co-signer. A co-signer pledges to be responsible for your debt if you are unable to make payments. Obviously, you will need to ask someone close to you such as a family member or a very close friend.
Finally, if you are still unable to get financing for your truck, SUV or Jeep, the best option is to usually save more money and put down a bigger down payment on a vehicle. The more money you put down on a vehicle, the less risk banks see a loan being and the better your chances of being approved are.