Lender Friendly Truck – What is That?

by | Dec 17, 2021 | All Posts | 0 comments

Well, for one, it is one that will not break down. Hard to tell in the used truck market, but that is the absolute Number 1 reason a loan goes into default – The truck breaks down.
So, with that, we like to see trucks that have less than 650,000 miles.
Why 650,000?

  • Average driver puts 100,000 to 120,000 miles on a truck per year.
    • Usually a truck will last, without major breakdowns, till 800,000 miles
    • At 800,000 miles, we want to be out of the loan
        • Why do we want to be out of the loan
          – The owner can now start putting more money into repairs and preventative maintenance.
          – If something does go wrong – the owner can get financing for repairs because they own the truck free and clear
    • For every 100,000 miles up to 800,000 miles:
        • I can offer 12 months of term
          – Example: a 400,000 miles truck will get up to 48 months to pay it off.
        • A brand new truck can get up to 72 months to pay off.

Cat, Detroit, Cummins, are all Lender Friendly Engines.
NOT Max Force International Engines.
WHY?

  • They break down. Max Force quit making the engine in 2016 due to its high failure rate.
  • In fact – International has had a class action lawsuit against them for this engine.

2007 and before to 2011 and after – All those trucks are lender Friendly. 2008 – 2010 not so much.
WHY?

  • Those were the first years of DEF – Diesel Enhancing Fluid. What a truck wreck that was.
  • It was not till 2011 that improvements were made to the point where the trucks were reliable again.

Day Cabs – are awesome. As well as wreckers, rollbacks, and any vocational trucks.

  • Income/cash flow producing machines – an investment that a business can rely upon.

Glider – their price tag is hard to justify.

  • Therefore the comparable loan value we place on them is the same as a conventional type truck.

New Trucks

  • Expensive – Yes
    • But, they get up to 8 miles per gallon or more
    • They have warranties
  • But – they must come from a Franchised Dealership only
    • Why – Warranties are in tack
    • The buyer will have a solid relationship with a certified dealership

Trucks with Rebuilt Motors

  • Not so much, but we will do them
    • They must have the most well written documentation of an Overhaul ever…

And Finally – Trucks with Deleted/Modified engine and/or exhaust system

  • Nope – The legal ramifications and compliance issues are to great

When in doubt – call and I will be sure to listen and have a conversation with you about your inquiries.
To get deals approved – tell us the story….
For deals under $150,000 we will need the App+ (Invoice, Application, Business Banks).
For deals over $150,000 we will need the App++ (Invoice, Application, Business Banks, and 2 years of complete business Tax Returns). Send all deals to credit@CHBef.com

See the Credit Box for more details on collateral and application requirements.
Call 307.241.7005 or email Kit at kwest@chbef.com for more details and preview a deal.
All deals are subject to approved credit (w.a.c.) and at the discretion of CHB.
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