If you are new to the bus purchase, then you may not know that bus loans as well as financing should be considered as the most important options when you choose a bus, especially this is true about used buses. Compare offers of several bus dealers before you take a decision, which one suits you most.
If you want to succeed in the buying exactly what you need and paying a reasonable price for a bus of your dream, you are recommended to follow the process described here:
- Settle on a bus,
- Agree on a price,
- Discuss financing options with the seller.
Don’t tell the bus seller that you have already got an approval from the bank while discussing the financing with the bus seller. If you want to get a bus loan, you should find a reputable financing institution and consider all options:
- An interest rate of the bus loan: the interest rate varies depending on many factors, which include the credit profile, your bus value, expected down payment, etc. Before you are able to find out more about the loan options, you will need to wait till your bus application is being processed.
- Down payment: Down payment will depend on your credit history. In case it is good, you will be able to use special programs that are free from any down requirements. If not, you will face a requirement to have about %25 down payment.
- Minimum bus loan amount: the situation with the bus loan amount is the following: companies seldom agree to process bus application with the amount of a loan that is less than $40,000.
- Length of the loan term: you won’t be able to get the loan for the period less than five years. As for large companies, they usually loan for 12 years.
- Application fee: it is recommended to ignore companies that want to charge you an application fee as this process must be completely free. If the company is afraid of taking such small risk, it means that you won’t be able to benefit from such cooperation.
- Bus makes that are financed: not all banks are ready to provide you with the necessary financing if they hear the names of obscure brands giving a preference to large and expensive buses only. Take this into account and continue your search if you realize that you have faced this problem.
- Role of your credit score: If your credit rating is from 600 to 640 and not less, then no problems must arise when you turn to the better companies providing bus finance. Your good credit score is an opportunity to enjoy an absence of application fees, credit check fees and enjoying rather reasonable interest rates. In case you can’t boast with your credit history, be ready to agree on not so advantageous deals.
- Financing of older buses: it is not easy to find a company that will agree to finance an old bus. Take this fact into account when buy a bus.
- First the bus and then the loan: you may face a situation when a bank will offer you to buy a bus spending your cash and then enjoy the loan given up to half a year after you have bought a bus.
- Calculate your bus loan: make all necessary calculations beforehand and make sure that you are going to get an interest loan.