Financing Commercial Vehicles for Business
Commercial truck financing enables businesses to acquire vehicles for operations without depleting working capital. Loans typically range from $25,000 for used light-duty trucks to over $150,000 for new heavy-duty semi-trucks with terms spanning 2-7 years. Down payments typically range from 10-20% for new trucks and 15-30% for used vehicles.
Interest rates vary from 5-25% based on creditworthiness, with new trucks qualifying for better rates. Financing options include conventional commercial loans, equipment financing, SBA loans, dealer financing, and leases. Section 179 deduction allows businesses to deduct up to $1,160,000 (2024) of vehicle cost in the year of purchase for trucks over 6,000 pounds. These tax advantages can reduce effective cost by 30-40%.