Finance Your Semi-Trucks
Class 8 semi-trucks for long-haul and regional freight transportation.
About Semi-Trucks Financing
Class 8 semi-trucks for long-haul and regional freight transportation.
Common Uses:
- Long-haul freight
- Regional transport
- OTR operations
- Dedicated routes
Financing Options for Semi-Trucks
Equipment Loan
Finance Semi-Trucks with fixed monthly payments. Build equity and own the equipment at the end of the term.
- Typical down payment: 15%
- Interest rates: 6.5%-11%
- Terms: 60 months typical
Equipment Lease
Lease Semi-Trucks with lower monthly payments. Upgrade equipment more frequently or buy at lease end.
- Lower monthly payments than loans
- Preserve cash flow for operations
- Options to upgrade or purchase
Financing Tips
- New vs used affects approval and rates
- TRAC leases popular for fleets
- Fuel efficiency impacts operating costs
Industries Using Semi-Trucks
Frequently Asked Questions
What is Section 179 and how does it work?
Section 179 is a U.S. tax code provision that allows businesses to deduct the full purchase price of qualifying equipment in the year it's purchased (up to $1,220,000 for 2024). This immediate deduction can significantly reduce your taxable income and effective equipment cost. Most business equipment qualifies, including machinery, vehicles, computers, and furniture.
What credit score do I need for equipment financing?
Most lenders require a minimum credit score of 600-650 for equipment financing, though some specialized lenders work with scores as low as 550. Better credit scores (700+) typically qualify for lower interest rates and better terms. Business time in operation and cash flow are also important factors.
How much does a semi-truck down payment cost?
Semi-truck down payments typically range from $10,000 to $30,000 (10-20% of purchase price). Owner-operators with strong credit may qualify for no-money-down programs. Larger down payments reduce monthly payments and interest costs. Some lenders offer low down payment options specifically for first-time truck buyers.
What is MACRS depreciation?
MACRS (Modified Accelerated Cost Recovery System) is the current IRS tax depreciation system. It assigns equipment to different "classes" (3-year, 5-year, 7-year, etc.) based on useful life, and provides accelerated depreciation schedules. Most equipment falls into the 5-year or 7-year classes. MACRS allows larger deductions in early years compared to straight-line depreciation.
How much down payment is required for equipment financing?
Down payments typically range from 10-20% of the equipment cost, though this varies by lender, equipment type, and creditworthiness. Some lenders offer 100% financing (no down payment) for well-qualified borrowers with strong credit and established businesses.
Should I lease or buy equipment?
The lease vs buy decision depends on several factors: how long you'll use the equipment, tax situation, cash flow needs, and equipment obsolescence rate. Buying builds equity and works well for equipment you'll use long-term. Leasing preserves cash flow, may have tax benefits, and works well for technology that becomes outdated quickly. Use our Lease vs Buy Calculator to compare both options for your specific situation.
How long does equipment financing approval take?
Approval timeframes vary by lender and loan complexity. Simple equipment loans under $250,000 can be approved in 24-48 hours with basic documentation. Larger loans or SBA programs may take 1-2 weeks. Online lenders often provide faster decisions than traditional banks. Having your financial documents prepared (tax returns, bank statements, financial statements) speeds up the process significantly.
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Tax Benefits
Semi-Trucks qualifies for Section 179 tax deduction.
- ✓Deduct full purchase price in year 1
- ✓Up to $1,250,000 in 2025
- ✓Bonus depreciation available
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