Trailers come in all shapes and sizes and can turn any number of jobs from back-breaking to simple and easy, but they’re a big investment. If you’re looking for ways to stretch your dollar, financing your trailer is the way to go! We here at Factory Outlet Trailers want you to get the tools you need when you need them, so we’ve put together some tips for financing your trailer, below. To learn more, or to see the trailers we have for sale, contact our store in High River, Alberta, today!
1: Create a Budget
The first step in any financial decision, especially one as big as this, is to have a firm budget in mind before you start. Look around at the trailers on sale near you, particularly of the type and size you need, to get an idea of their average prices, then look around at the different loan options available. Using those numbers, figure out how much money you can spend on a down payment up front and how much you can afford to pay monthly, including interest. Most loans will require a down payment worth at least 10-20% of the trailer’s full price, and keep in mind that you’ll need to budget for maintenance, gear, and other regular necessities.
2: Prepare Your Information
Lenders will want some information from you to see if you qualify, including but not limited to:
- Your credit score and history.
- Debt-to-income ratios.
- The size of the down payment.
- The age, quality, price, and value of the vehicle in question.
- Any pertinent trade-in information.
Make sure all of this is prepared before your first meeting to keep things rolling smoothly.
Of all that information, your credit score plays the biggest part in determining whether or not you qualify. Good scores are obviously better, so try to bolster yours by buying small items and paying them off quickly or paying off old debts. Even if your credit score still isn’t stellar, most lenders will be able to work with you, and some loans are easier to qualify for with low credit scores than others.
3: Decide on the Loan Type
There are two main types of loans you might be eligible for. The first type is the easier of the two to qualify for if you have a low credit score, and it’s called a secured loan. These loans have longer repayment periods, lower interest rates, and higher overall loan amounts. The downside is that they use the trailer as collateral, meaning if you default on payments, the trailer can get repossessed.
The other loan type is an unsecured loan. These require higher credit scores, have shorter repayment periods, higher interest rates, and lower overall loan amounts, but they don’t use the trailer as collateral. While defaulting may still result in some problems, repossession isn’t necessarily on the table.
Ready to get started? Contact our financial experts at Factory Outlet Trailers for more information, or to get started on a loan. We proudly serve the people of Calgary and Edmonton, Alberta, and of the Greater Vancouver Area in British Columbia—let us serve you today!