For over 35 years, CAG Truck Capital has been committed to treating our customers honestly and fairly, exactly the way we would want to be treated ourselves. With all the truck financing companies out there, how do you know which one is the best choice for you? CAG has helped thousands of owner-operators just like you succeed and in that time have heard all the horror stories of fly-by-night finance companies that seem to pop up and disappear just as quickly as they first arrived. Here are just a few of the items that you as an educated consumer should be cautious of when shopping for a truck loan:
Undisclosed Fair Market Value Buyouts
You faithfully pay all your lease payments just to be surprised with a buyout you actually have to negotiate! That’s right! It’s a fair market value buyout and they determine the value not you, and if you can’t pay it or agree to the amount, you lose your truck. With CAG Truck Capital, you make all your truck loan payments and you get your title. PERIOD! There are no games and no surprises.
Double Sales Tax
With a lease, you generally are charged sales tax on your monthly payment. In some cases even on the purchase price and the payments. Here the kicker….when you pay off your lease and transfer the truck title from the leasing company’s name to yours you will pay sales tax again! With CAG Truck Capital, the title is in your name from the start so you only pay sales tax on the purchase price.
Cash Up Front
Whether they call them application fees, commitment fees or something else, beware of financce companies asking you to send them money prior to approval. There are countless stories of crooked brokers lying about approvals, taking your money, never to be heard from again. Do your homework online and always ask for truck dealer and customer references.
No Early Payoff
With most leases there is no early payoff. You owe the total of the remaining payments. For truckers, this should be alarming! Should you need to trade your truck for any reason, or suffer a total insurance loss, this could put you out of business. At CAG Truck Capital, we only do simple truck and engine overhaul loans and you have the ability to pay off early. We even help you with trade in and the insurance claim process.
Security Deposits and Advance Payments
This trick is widely used by unscrupulous truck leasing and finance companies! This is where they use YOUR MONEY instead of you! They hold on to it, use it, and you can’t apply it towards the down payment to reduce the amount you borrow. So you borrow more, they make more, and you pay thousands more! At CAG Truck Capital ALL YOUR MONEY goes towards the down payment to reduce the amount you borrow so you SAVE thousands.
Add-on Interest vs True Simple Interest
This is an old trick from the 1950’s developed by the used car business to fool people into thinking they’re paying a lower rate. It’s actually outlawed in most states. A 10% add-on rate could be over 25% using a simple interest calculator. Don’t be fooled! Check your rate.
Establishing Commercial Credit
Many finance and leasing companies tell you they report to credit agencies. Some do. Most do not unless you stop making payment and default on the loan. That doesn’t help if you’re trying to establish commercial credit. At CAG Truck Capital we report your performance to consumer and commercial agencies and help you establish commercial credit.
Uninformed “Truck Experts”
All their websites claim they know trucks but do they? At CAG we have prevented countless incidents that could wipe a trucker right out of business. We ask questions! Is this a tractor converted into a dump truck? Is this engine troublesome for an owner-operator without a diesel mechanical background? We are also very careful to match the loan term to the expected life of the truck, so when the time comes, you’re in a position to trade and upgrade your truck or overhaul your engine. Others want to bury you in a long-term contract, which will likely outlive the life of your truck. CAG Truck Capital wants you to succeed.