Semi-Truck Financing
What is semi-truck financing? Semi-truck financing is a commercial loan or lease used to acquire a Class 8 tractor, structured around the truck as collateral.
Full definition
Semi-truck financing typically runs 36-72 months at rates that range from 6% on prime credit to 25%+ on subprime or B/C credit. Down payments range from 0% (rare, sub-prime carriers) to 25% (older equipment, low-credit applicants).
Underwriting weighs FICO, time in business, monthly revenue, the truck's age and miles, and whether the truck is bought from a dealer or a private party. Newer trucks and dealer transactions carry better terms.
Leases vs loans diverge on tax treatment, balloon payments, and end-of-term residuals — most owner-operators choose loans for simplicity, fleets often prefer TRAC leases.