Financing Your Used Truck Purchase

We live in a fantastic time. If you are considering purchasing a used truck for sale then now is as good a time as ever. Interest rates are low, people are looking for extra cash buy getting rid of their second and third vehicles (usually trucks) and there are plenty of financing options available to you to make your purchase.

This article will talk about 3 of the major financing options available to you and what some of their pros and cons are.

Owner Financing

We wanted to start with this type of financing simply because it needs to be addressed first. Owner financing is a great idea that rarely works out in the end.

Owner financing is supposed to work this way: You (the buyer) approach a seller (the owner). Since you don’t want to go through the trouble of getting a loan, or trying to get the money some other way, you work out a deal with the seller. Essentially the seller will lend you the car as you make monthly payments until you have paid the car off.

Sounds great right? Here is why it never works:

In most cases, the seller will hold the title. Meaning they will not sign the title over to you. This is common with any type of financing. The problem with this in owner financing is that owners are not regulated financial institutions. Unless you had a professionally drafted contract (which you probably didn’t) it would not be difficult for the owner of the used truck for sale to simply “take” the truck back. They may even sue you for the truck.

This method can get very messy simply because there is no real regulation on the process and when it comes to paperwork, the court will most often find the title holder the true owner of the car, in this case the seller. If you do proceed with this option of financing, be aware of the potential pitfalls.

Dealer Financing

Dealership financing is almost exactly the same as owner financing except that you are working with a more professional organization. We certainly can’t speak for every car dealership that has ever existed, but most are unlikely to randomly ask for the truck back.

Unlike owner financed vehicles, making a late payment won’t bankrupt the dealership, which means there is much more leeway and mercy during the lean times. Do be aware that with that mercy comes the heavy hand dealing with professionals. Most dealerships are very knowledgeable about the law and they will make sure that they get their money.

Third Party Bank Financing

If you don’t necessarily want to buy a car from a dealership but you don’t want to engage in owner financing, you can always get a loan from the bank. Getting a loan from a bank is a complex process and you do have to qualify under certain conditions.

For example, they will check your credit before issuing a loan. If your credit is bad enough, you won’t be able to get a loan at all. If your credit allows you to get a loan to purchase a used truck for sale but it still isn’t great, you may pay a higher percentage.

Banks are probably your safest bet because once they grant you the loan, they will give you cash in hand to purchase the truck. This means that you will hold the title, and the car will be collateral against the loan.


Now that you know about some of the financing options available to you as a future used truck owner, take a look around our site to see how much you will need to borrow to get the truck of your dreams!