Need a diesel truck for towing applications? The problem is that the mileage on these trucks often exceeds the maximum limit imposed by lenders. It certainly isn’t impossible to finance high mileage diesel trucks, but it could mean jumping through a few extra hoops. Here are a few tips to help you secure the auto loan for the high mileage diesel truck that you need.
Higher Mileage = Higher Down Payment
The number one thing to keep in mind with any high mileage vehicle is that you are most likely going to need a higher down payment than with a new car. In many instances, you will need to offer at least twenty percent of the total purchase price in cash. Offering a trade in that amount is not as persuasive as cash in this instance. The more cash you offer down, the more apt you are to get the loan.
You will save yourself time and a dip in your credit score by avoiding large national banks. They will not loan money against a vehicle of any kind that has more than 100,000 miles, no matter the circumstances. That leaves you will three viable choices: a small local bank, a credit union, or an online specialty lender. The only local bank that will loan you money for a high mileage diesel truck is the one you have been banking with for years. Even then, you may find it difficult to secure the funds you need. If you do not have such a relationship, skip to the credit union option.
Local Credit Unions
Credit unions have looser lending guidelines than banks. They offer non-traditional loans (higher mileage vehicles) to their members regularly. Your first step should be to ask about the institutions policy on high mileage vehicle loans. If they offer them, then you will need to become a member. That is usually as simple as opening an account of any kind. In recent years, the membership criteria for many credit unions have opened up to welcome a much broader range of consumers. Often you can qualify to become a member simply by living in a certain county. If that fails, you still have the option of applying through an online specialty lender.
Online specialty lenders thrive on making non-traditional loans. They offer loans to lower credit scores, for business vehicles, and high mileage vehicles. These lenders are able to make loans that other lenders avoid because they keep their overhead low by operating online instead of at multiple brick-and-mortar locations. You need to keep in mind that these lenders will require a higher interest rate, a down payment of twenty percent or more, and may require you to repay the loan in as little as thirty months.
Finding an auto loan for high mileage diesel trucks can take some work, but it is possible. All you need to do is look for the right lender. That’s where we come in. We can help match you with a lender willing to approve you for the vehicle you need. Go here to apply online. We’ll put you in the capable hands of a finance specialist who can get you behind the wheel of the truck you need.