Consider These 3 Things Before Selling Your Financed Semi-Truck

When it’s time to sell your Semi-Truck, there are several options. You can sell it to a dealer, trade-in your used semi truck or put your semi truck up for sale yourself. If you want to get the best value for your truck, you may want to have it fully serviced and even get a windshield calibration and windshield replacement from an auto glass repair and replacement center before selling. However, if you have a semi-truck loan, moving on from your truck can get complicated.  So before you put your big rig up for sale, there are a few things you might want to consider.

1. Understanding Your Commercial Truck Financing  

If you can find it, dig out that equipment financing agreement and read over the terms carefully. If you have a question, don’t be afraid to contact your financial institution for answers.  Commercial truck loans come in all different shapes and sizes. Things like your credit score, whether it’s a business loan or personal loan are going to help determine your terms.

• Make sure their are no pre-payment penalties. If there are, account for them before you put your commercial vehicle up for sale.
• Ask what documents a private party buyer will need to complete a sale (besides a check).
• Try to get a feel for the time frame of how long a transaction takes. If you can, you may want to pay off the lender first to make the selling process cleaner and quicker.

2. Selling Your Financed Commercial Truck To A Private Party

The upside to selling your truck to a private party as opposed to selling to a dealership can be substantial.  No small business owner wants to leave money on the table. Your trucking business will benefit from the extra cash you get selling to a private party. But selling your financed  big rig to a private seller can get messy for both parties. Here is some advise you might want to contemplate before you put your big rig up for sale yourself.

• Be upfront to prospective buyers. Let them know your truck is financed. There is no advantage to waiting until a buyer commits.
• Use The Buyers Money  – Most private buyers will want title in hand once they give you payment. However if you can complete the transaction at the finance company or lender where the title is being held, your prospective buyer may be willing to move forward with out handing him title that day.
• Always ask prospective buyers if they are financing . If the answer is yes, don’t commit to selling your commercial vehicle until the buyer’s financing is secured. A large trucking company may be able to get financing within a matter of minutes. This will not be the case for a first time owner operator, even if they have good credit.  A commercial truck loan is not a car loan.
  • Ask if they have a commercial drivers license (cdl). They will need one to secure a commercial loan in most cases.
  • Does the person financing need a co-signer? Is the buyers credit history good? Have they even started the process of filling out a credit application? All these things take time.
• We wouldn’t recommend asking for a down payment. A potential buyer may be acting in good faith and be denied a commercial loan because of bad credit or they are approved but the interest rate is too high. Who does that down payment legally belong too? You don’t want to have to make that decision

3. Hit The Easy Button And Sell Your Used Semi Truck To A Dealer

If your semi truck is financed selling it to a reputable dealer makes sense.  Let the dealership communicate with the finance company. A dealer will do all the work for you.

Let’s be clear, a dealer in most cases will not offer you a retail price for your big rig.. Dealers are in the business of making money. With that said, dealers make sense when:

• You consider yourself a truck driver, not a commercial truck leasing company and you want your semi truck to go away with the least amount of hassle.
• The truck needs to be sold today
• You are behind on your monthly payments with the finance company and you want to pay off your equipment loan before you end up with bad credit.

While selling a truck that is financed can be a more complicated sale, it doesn’t have to be more stressful. Do your homework and way your Opportunity Cost.  If you do both of those things, making a decision on how to sell your commercial truck will become clear.