Commercial Vehicle Loans: How They Work and Where to Get One
What Is a Commercial Vehicle Loan?
A commercial vehicle loan is a secured business loan where the vehicle itself serves as collateral. Unlike a personal auto loan, commercial vehicle loans are structured for business use and take into account business financials, not just personal credit. They cover a wide range of vehicles:
- Semi trucks (Class 6, 7, 8)
- Box trucks and cargo vans
- Flatbeds and dump trucks
- Refrigerated trucks (reefers)
- Work trucks and service vans
- Specialty vehicles (bucket trucks, crane trucks, tankers)
How Commercial Vehicle Loans Work
The lender pays the seller (dealer or private party) for the vehicle, and you repay the lender in monthly installments over a term of 24–84 months. The lender holds a lien on the vehicle title until the loan is paid off. Once paid, the lien is released and the title transfers to you free and clear.
Interest Rates on Commercial Vehicle Loans
Rates vary based on:
- Your personal and business credit score
- Vehicle age and mileage
- Loan term (longer terms = slightly higher rates)
- Down payment amount
- Business revenue and time in business
Well-qualified borrowers typically see rates in the 6–12% range. Lower credit profiles may see 15–25%+ but can still get approved and refinance later as credit improves.
New vs. Used Commercial Vehicles
New vehicles finance at the best rates and widest lender selection. Used vehicles have more restrictions — most lenders won’t finance a commercial vehicle that’s over 15 years old or over 750,000 miles. Specialty lenders like Champion Equipment Finance have more flexibility on used vehicles than banks do.
What Documents You’ll Need
- Business license or formation documents
- 3 months of business bank statements
- 2 years of business tax returns
- Vehicle specs or purchase agreement
- Driver’s license and CDL (if applicable)
- Insurance certificate
Where to Apply
Champion Equipment Finance specializes in commercial vehicle loans for businesses of all sizes. We work with businesses that have strong credit and those that are rebuilding — and we typically provide pre-approval decisions within 24 hours.
