Truck Loan Options to Buy at Truck Auctions


Truck Loan Options to Buy at Truck Auctions

The cost of buying brand new heavy vehicles can be very high for many operators, even with financing options. Therefore, buying secondhand vehicles is a more affordable alternative for many businesses. Truck auctions offer an excellent opportunity to acquire quality vehicles at competitive prices.

Many truck fleets, including rental companies, government agencies, and councils, have policies that require upgrading vehicles after a certain mileage or age. This practice regularly introduces well-maintained trucks into the secondhand market, many of which are sold at auctions. Additionally, individual operators may also sell high-quality trucks that are no longer needed.

These factors contribute to the availability of quality trucks at auctions, presenting cost-effective opportunities for buyers to find vehicles that meet their needs and budget.

Financing a Truck Purchase at Auction

Different Approach for Auctions

Purchasing trucks at auctions requires a distinct approach to securing funding compared to buying from a dealer. Typically, with dealers, operators wait until they confirm pricing and availability before arranging financing.

When buying at an auction, you need certainty regarding approval for funding, specific financing for vehicles of interest, and any applicable credit limits. This certainty allows you to bid confidently up to your pre-approved limit. Missing out on exceptional lots can happen with any hesitation during bidding.

Pre-Approved Truck Loans

Benefits of Pre-Approval

We offer pre-approved truck loans to help bidders. This allows you to:

  • Review the auction house catalog and inspect lots to gather information for your credit application.
  • Submit the application to our brokers, who will source the lowest rate quote and get approval for your specified amount.
  • Bid with confidence up to your limit, knowing you can settle the purchase immediately upon winning the bid.

Our 24-hour approval process can facilitate quick post-sale credit confirmation for spontaneous decisions.

Additionally, you can use our finance calculator at the event to get credit estimates for different priced vehicles.

Truck Loan Options for Used Trucks

Truck Loan Options for Used Trucks

The funding products available for both new and used vehicles are similar (Chattel Mortgage, Rent-to-Own, Truck Leases, and CHP). However, the interest rates, terms, and conditions applied by lenders can differ for used vehicles.

A crucial consideration is whether the lender will accept the vehicle as adequate security for the loan. Our Unsecured Loans can provide a viable solution for older vehicles that may not qualify as collateral for traditional financing.

We are committed to securing the lowest rates from our extensive panel of finance lenders, tailoring financing options to your specific needs for confident purchasing.

Truck Financing Tips for Auctions

Tips for Successful Auction Purchases

For operators new to purchasing at auctions, here are some key factors to keep in mind for a cost-effective and successful outcome:

  • Understand Funding Differences: Used vehicles often come with different interest rates and conditions compared to new ones. Providing detailed information about the vehicle lot helps lenders assess its value and suitability as collateral.
  • Consider Balloon Payments: When considering balloon truck loan payments, buybacks, or residual amounts, factor in the vehicle’s expected working life. Ensure these amounts reflect the anticipated value of the vehicle at the end of the financing term.
  • Pre-Approved Funding: Secure pre-approved funding before the event to give you an advantage and assurance to bid effectively.

Contact Loan Junction before the sale event to secure pre-approved financing, gain confidence in bidding, for pre-approved truck finance and other truck loans to purchase at truck auctions.