Your leased onto a company and you want to move to another company. Problem is you still owe money on the Truck. To make matters worse your credit isn’t so great. What do you do. In this video we go over some of the ways you can increase your chances of a smooth transition. Check out “Paying Off A Semi Truck Lease”

Here’s a transcript if you want to read it:

Hello. My name is Jason Dasher, with Capital Solutions. Today, we’re going
to talk about paying off a truck lease. We get many requests for this sort
of thing every week. A guy has leased onto another company, and he wants to
pay the truck off so he can drive elsewhere. The main motivation here is to
drive for another company. There’s many reasons for that, which we’re going
to go into right now.

Why would a guy want to do this? Why would he want to pay the truck off
where he’s at? What are the motivations behind that? The first reason that
we find a guy wants to pay his truck off is that he’s not getting enough
miles from the company that he’s driving for, and he’s not going to get
enough money. He wants to get rid of the company he’s signed on with right
now and go drive for another company. Many times, the expenses with his
current company are eating into his revenue too much, and his net income
from the company is not sufficient, so he wants to make a move. They’re
making decent money, but they could make more elsewhere. A lot of these
guys get a great contract, but they’re signed on with this other company,
so they want to cash out their current truck and take it to somewhere else.
Of course, there’s lots of other reasons: Many times a guy is offered a
contract, maybe to drive locally or regionally, so he’s home every night.
Sometimes he’s not happy, personalities clash, or something like that, but
he still wants to make the move.

The amount of money owed on the trucks is often too high. He doesn’t have
$10,000 or $20,000 lying around, so he needs commercial truck financing.
How do you get that kind of financing? It’s not like a truck purchase where
you get financing through a dealer or something like that. There’s not very
many companies that will do this sort of thing, so it’s a bit tough. Yeah,
a lot of these guys’ credit isn’t so good, so that makes it even more
difficult.

Some possible solutions to this, we’ll talk about right now. The first
thing you want to do to get prepared for this is to get a payoff on the
truck, and if it includes the trailer of course, find out exactly what’s
owed on the truck and trailer so you know what you’re dealing with. Get a
realistic value on the truck. Think in terms of a buyer, not a seller. You
want to think bottom number, so again, you go in prepared and educated;
you’re not looking too optimistic to the bank. The more equity, the better;
lenders love equity, so if you got a big spread between the value of the
truck and what’s owed on it, you’re in a better position.

First step is to contact your banker. You’re showing a payment history. A
lot of them won’t do semi truck financing, but if you show that kind of
payment history, if you’ve got the equity, they may turn around and do it.
Contact a credit union: Credit unions were very strong for different types
of commercial truck financing in the past. The recession softened them up a
little bit, but now they are starting to come back around. I encourage you
very much to . . . even if you’re not with a credit union, go open a small
account and get a relationship going with them. They’re my worst
competition; let me put it that way. They’re working with guys with soft
credit, and they’re coming back as a force in the semi truck financing
industry, so check that out. That’s good advice right there. If all else
fails, or if you have other motivations, call independent truck financing
companies, which we are one. There are others out there. I know of 3 or
independent commercial truck financing companies that will do this sort of
thing. Give them a call, and you could maybe get something done that way.

If you are having a tough time getting financing somewhere, the first thing
to do is maybe pull in a co-signer with good credit, hopefully in the
trucking industry, and maybe that can get the deal done. Buying the balance
down: As an example, let’s say you owe $20,000 on the truck. If you have
$5,000 you can put towards that, now you’re financing $15,000, and that’s
another way of making the deal sweeter to the bank. Of course, additional
collateral: This falls into our category. If you have a weak credit
profile, putting some other trucks or equity in real estate or heavy
equipment on the line, in addition to the truck might get the deal done, as
well.

Success; what is success, and how does it happen? If you have, again, lots
of truck equity, that’s really good, or good credit will help you get
success on this. Strong co-signer; we talked about that before. Having a
good, strong co-signer will better your odds, if you need one. Of course,
additional collateral.

To get it done, if you have any questions, give me a call; the number is on
the screen. Even if you don’t have collateral but you want to talk to a guy
that’s been through the process 100,000 times, and I’ve certainly talked to
more people than that, if you want to bounce some ideas off me, give me a
call, and perhaps I can help you.

Good luck with your trucking business out there. Let me know if we can help
you.