Understanding Semi Truck Financing
Semi trucks, also known as 18-wheelers, tractor-trailers, or Class 8 trucks, are significant investments ranging from $80,000 for used models to over $200,000 for new trucks with premium specifications. Understanding your financing options is essential to making a sound business decision.
What Qualifies as a Semi Truck?
Semi trucks fall under Class 8 vehicle classification:
- ●Gross Vehicle Weight Rating (GVWR): Over 33,000 lbs
- ●Common Configurations: Sleeper cabs, day cabs
- ●Popular Manufacturers: Freightliner, Peterbilt, Kenworth, Volvo, International, Mack
- ●Primary Use: Long-haul and regional freight transportation
Semi Truck Prices: What to Expect
New Semi Truck Prices (2026)
| Manufacturer | Model | Price Range |
| Freightliner | Cascadia | $150,000 - $180,000 |
| Peterbilt | 579 | $160,000 - $200,000 |
| Kenworth | T680 | $160,000 - $195,000 |
| Volvo | VNL 860 | $155,000 - $185,000 |
| International | LT Series | $140,000 - $170,000 |
| Mack | Anthem | $145,000 - $175,000 |
Used Semi Truck Prices
| Age | Mileage | Typical Price Range |
| 1-2 years | Under 200K | $100,000 - $140,000 |
| 3-4 years | 200K - 400K | $70,000 - $100,000 |
| 5-7 years | 400K - 600K | $45,000 - $75,000 |
| 8-10 years | 600K+ | $25,000 - $50,000 |
Semi Truck Financing Options
1. Traditional Commercial Loans
Standard financing with fixed terms:
Features:
- ●Loan terms: 48-84 months
- ●Fixed or variable rates
- ●Own the truck when paid off
- ●Build equity with each payment
- ●Established businesses
- ●Buyers planning long-term ownership
- ●Those with good credit
2. TRAC Leases
Terminal Rental Adjustment Clause leases are common for semi trucks:
How They Work:
- ●Predetermined residual value set at lease start
- ●Monthly payments based on depreciation
- ●Option to purchase at lease end
- ●Adjustment at termination based on actual value vs. residual
- ●Potentially lower monthly payments
- ●Flexibility at lease end
- ●Tax advantages in some situations
3. Manufacturer Financing (Captive Finance)
Major manufacturers have financing arms:
| Manufacturer | Finance Company |
| Freightliner | Daimler Truck Financial |
| Peterbilt | PACCAR Financial |
| Kenworth | PACCAR Financial |
| Volvo | Volvo Financial Services |
| Mack | Mack Financial Services |
| International | Navistar Financial |
- ●Special rates and programs for their brands
- ●Dealer incentives may apply
- ●Industry expertise
- ●Streamlined process
4. Fleet Financing
For purchasing multiple trucks:
- ●Volume discounts available
- ●Master lease agreements
- ●Staggered payment schedules
- ●Consolidated billing
Semi Truck Financing Requirements
Credit Requirements
Excellent Credit (720+)
- ●Lowest interest rates
- ●Minimal down payment (10-15%)
- ●Best terms available
- ●Widest lender selection
- ●Competitive rates
- ●Standard down payment (15-20%)
- ●Most lenders will approve
- ●Some negotiating room
- ●Higher interest rates
- ●Larger down payment (20-25%)
- ●May need additional documentation
- ●Fewer lender options
- ●Specialty lenders required
- ●Significant down payment (25-40%)
- ●Higher rates
- ●Additional collateral may help
Documentation Requirements
For Established Businesses:
- ●2-3 years business tax returns
- ●Current year profit and loss statement
- ●Business bank statements (6-12 months)
- ●Equipment list
- ●DOT/MC numbers
- ●Personal tax returns (2-3 years)
- ●CDL and driving record
- ●Personal bank statements
- ●Business plan
- ●Contracts or letters of intent
Down Payment Guidelines
| Credit Profile | New Truck | Used Truck |
| Excellent | 10-15% | 15-20% |
| Good | 15-20% | 20-25% |
| Fair | 20-25% | 25-30% |
| Challenged | 25-35% | 30-40% |
New vs. Used Semi Truck Financing
Financing a New Semi Truck
Advantages:
- ●Warranty coverage
- ●Latest technology and fuel efficiency
- ●Manufacturer financing incentives
- ●Better financing terms available
- ●Lower maintenance initially
- ●Higher purchase price
- ●Greater depreciation in first years
- ●Higher insurance costs
- ●More to lose if business fails
- ●Rates: 6% - 12% for good credit
- ●Terms: 60-84 months
- ●Down payment: 10-20%
Financing a Used Semi Truck
Advantages:
- ●Lower purchase price
- ●Less depreciation hit
- ●Lower monthly payments
- ●Can buy more truck for less
- ●No warranty (usually)
- ●Unknown history concerns
- ●Higher maintenance potential
- ●Higher interest rates
- ●Shorter loan terms available
- ●Rates: 8% - 18% for good credit
- ●Terms: 36-60 months (depending on age)
- ●Down payment: 15-30%
Age and Mileage Limits
Most lenders have restrictions:
| Lender Type | Age Limit | Mileage Limit |
| Banks | 5-7 years | 400,000-500,000 |
| Credit Unions | 7-10 years | 500,000-600,000 |
| Finance Companies | 10-12 years | 700,000+ |
| Specialty Lenders | 15+ years | 1,000,000+ |
Day Cab vs. Sleeper Financing
Day Cab Semi Trucks
Designed for local and regional routes:
Cost: $10,000-$30,000 less than comparable sleeper Best For: Regional routes, home daily operations Financing Notes: May have slightly better rates due to lower cost
Sleeper Cab Semi Trucks
Designed for over-the-road (OTR) operations:
Cost: Premium for sleeper space and amenities Best For: Long-haul, OTR operations Financing Notes: More common for independent owner-operators
Brand-Specific Financing Considerations
Freightliner Financing
- ●Most popular brand in U.S.
- ●Daimler Truck Financial offers competitive programs
- ●Wide availability of parts and service
- ●Strong resale values
Peterbilt and Kenworth Financing
- ●Premium pricing but strong residual values
- ●PACCAR Financial offers specialized programs
- ●Higher resale values can mean better lease terms
- ●Popular with owner-operators
Volvo Truck Financing
- ●Volvo Financial Services programs available
- ●Strong fuel efficiency ratings
- ●Growing market share
- ●Competitive financing options
International Financing
- ●Navistar Financial programs
- ●Competitive pricing
- ●Wide dealer network
- ●Various program options
Current Semi Truck Financing Rates (2026)
New Semi Trucks
| Credit Score | Rate Range |
| 750+ | 6.5% - 8.5% |
| 700-749 | 8% - 11% |
| 650-699 | 11% - 15% |
| 600-649 | 15% - 20% |
| Below 600 | 20%+ |
Used Semi Trucks
| Credit Score | Rate Range |
| 750+ | 8% - 11% |
| 700-749 | 10% - 14% |
| 650-699 | 14% - 18% |
| 600-649 | 18% - 24% |
| Below 600 | 24%+ |
Calculating Your Payment
Payment Formula Factors
- ●Principal: Truck price minus down payment
- ●Interest rate: Based on credit and lender
- ●Term: Loan length in months
- ●Additional fees: Documentation, origination
Sample Monthly Payments
New Freightliner Cascadia: $160,000
| Down Payment | 60 Months @ 8% | 72 Months @ 8% | 84 Months @ 8% |
| 10% ($16,000) | $2,919 | $2,524 | $2,243 |
| 20% ($32,000) | $2,595 | $2,244 | $1,994 |
| 30% ($48,000) | $2,271 | $1,964 | $1,745 |
| Down Payment | 48 Months @ 12% | 60 Months @ 12% |
| 15% ($15,000) | $2,236 | $1,890 |
| 25% ($25,000) | $1,972 | $1,667 |
| 35% ($35,000) | $1,709 | $1,445 |
Tips for Getting the Best Semi Truck Financing
1. Improve Your Position Before Applying
- ●Build credit score over time
- ●Reduce existing debt
- ●Save for larger down payment
- ●Gather complete documentation
2. Shop Multiple Lenders
Compare offers from:
- ●Banks and credit unions
- ●Manufacturer finance companies
- ●Independent commercial lenders
- ●Dealer financing
3. Consider Total Cost of Ownership
Factor in:
- ●Fuel costs and efficiency
- ●Insurance expenses
- ●Maintenance and repairs
- ●Permits and licensing
- ●Downtime costs
4. Time Your Purchase
- ●Year-end may bring dealer incentives
- ●Model year changes can discount previous year
- ●Interest rate environment affects terms
- ●Manufacturer promotions vary
5. Negotiate Everything
- ●Purchase price affects financing amount
- ●Rate can sometimes be negotiated
- ●Term length flexibility
- ●Down payment requirements
Frequently Asked Questions
What credit score do I need to finance a semi truck? While some lenders work with scores as low as 500, you'll get the best terms with a score of 680+. Most mainstream lenders prefer 650+ for approval.
How much should I put down on a semi truck? Plan for 10-20% down with good credit, or 20-35%+ with challenged credit. More down payment generally means better terms.
Can I finance a semi truck with no money down? Zero-down semi truck financing is rare and typically only available to very well-qualified borrowers with excellent credit and established businesses.
How long can I finance a semi truck? New trucks can often be financed for up to 84 months. Used trucks typically max out at 60-72 months depending on age.
Is it better to lease or buy a semi truck? It depends on your situation. Buying builds equity and ownership. Leasing offers lower payments and flexibility. Consider your long-term plans and cash flow needs.
What is the average interest rate for semi truck financing? Rates vary widely. Excellent credit might see rates of 6-9%. Average credit typically sees 10-15%. Challenged credit may face 18-25%+.
Getting Started
Understanding your semi truck financing options is the first step. Consider your credit profile, down payment capability, and business plans when evaluating which path is right for you. When you're ready, connecting with lenders who specialize in commercial truck financing can help you find terms that fit your needs.