Tag commercial truck

Every industry today relies on commercial vehicles. Sectors like telecommunications, construction, food, and agriculture, to name a few, depend on these trucks to carry out daily operations. They aid in hauling, logistics, and transportation, making their operation efficient and fast.

These trucks are built differently to help accommodate these various needs. From dump trucks and tow trucks to semi-trucks, commercial vehicles come in different sizes and capabilities and are categorized into classes.

The Federal Highway Administration classifies all commercial vehicles into eight, ranging from light-duty, medium-duty, and heavy-duty. In this article, we break down these classifications, providing examples and models to give you a clear understanding of what each category entails.

WHAT IS A COMMERCIAL VEHICLE?

The Federal Motor Carrier Safety Administration defines commercial vehicles as self-propelled vehicles that operate on the highway, and are used to transport people and goods across states. Ideally, commercial trucks have a rating gross vehicle weight rating and are categorized based on various criteria to ensure appropriate usage, compliance with regulations, and safety standards. 

WHAT IS GROSS VEHICLE WEIGHT RATING (GVWR)?

Trucks in the United States are categorized by their Gross Vehicle Weight Rating (GVWR), often found inside the driver’s side door. The GVWR is the metric used to categorize vehicles based on their maximum loaded weight. 

In simple terms, it determines the total weight a truck can operate at. It is specified by calculating the vehicle’s weight at its fullest capacity, including fuel, cargo, complete passengers, and drivers.

CLASSIFICATION OF COMMERCIAL VEHICLES BY WEIGHT

Commercial vehicles are classified by weight, ranging from class 1-8. These are then sub-divided into three: light, medium, and heavy-duty. In this section, we will consider each category and their sub-divisions.

LIGHT DUTY VEHICLES

Light duty vehicles fall within the GVWR of 0-14,000 pounds. These are small trucks used for daily operations. They include vans and pickup trucks used for transporting light goods. They are broken down into three and expatiated below:

CLASS ONE (GVWR: 0 to 6,000 LBS)

These include small pickup trucks, SUVs, and minivans weighing up to 6,000 pounds (2,722kg). Class one trucks are more often utilized for personal uses to transport lightweight items, or for small-scale deliveries. Examples include the Ford Ranger and the Chevrolet Colorado.

CLASS TWO (GVWR: 6,001 to 10,000 LBS)

Class two vehicles include standard full-size and heavy-duty pickup trucks, larger SUVs, and some cargo vans. They are subdivided into 2A (6,001 – 8,500 pounds) and 2B (8,501 – 10,000). These trucks are used for moving heavier items and are used by different industries like construction and emergency services for ambulances. Popular examples include Ford F-150, and GMC Sierra 1500.

CLASS THREE (GVWR: 10,001 to 14,000 LBS.)

Vehicles like larger pickups, cargo vans, utility trucks, small box trucks, and school and city buses fall here. These trucks are often utilized by delivery services moving companies, construction, and maintenance. The Ford-350, RAM 250,0, and GMC Savana belong to this category. 

MEDIUM-DUTY VEHICLES

Medium-duty vehicles comprise classes three to six. They are built for more tedious tasks compared to the light-duty category. 

CLASS FOUR (GVWR: 14,001 – 16,000 LBS)

Class four trucks  have a GVWR within 14,001 to 16,000 lbs. They are used by various industries for transporting items like furniture, appliances and construction equipment. Examples include flatbed trucks, delivery trucks, and larger box trucks. The Ford-450, Chevrolet Silverado 4500HD, and Isuzu NPR-HD are popular models in this class. 

CLASS FIVE (GVWR:16,001 – 19,500 LBS)

In this category, you will find small-sized dump trucks, some school buses, large delivery trucks, and bucket trucks. They are popular in industries like waste management, and construction, among others. Examples of models in this include the Ford F-550, Chevrolet Silverado 5500HD, Freightliner M2 106, and the RAM 5500. 

CLASS SIX (GVWR: 19,501 – 26,000)

Vehicles in this division are built for transporting various items like food, beverages and some heavy construction or industry equipment. They include single-axle trucks, some school buses, and beverage trucks. Ford F-650, International MV607 and Peterbilt 220 fall into this category. 

HEAVY-DUTY VEHICLES

Heavy-duty vehicles are designed to handle heavy loads and perform tougher tasks. They are essential machinery commonly found in the logistics and transportation industry and comprise of Class 7 and 8 vehicles. Their GVWR ranges from 26,001 to above 33,000 pounds. 

CLASS SEVEN (GVWR: 26,001 and 33,000 LBS.)

Refuse trucks, cement mixers, and city transit buses are class seven vehicles. Not only can they handle some tough jobs, they are also rugged and can be relied on in situations that require high maneuverability and versatility. 

Examples of models you will find in this category include the Peterbilt 348, Mack Granite MHD, and the International HX. 

CLASS EIGHT (GVWR over 33,000 LBS.)

If you think class seven vehicles are tough wait till you discover the heaviest trucks in the eighth category. These trucks  are typically used for heavy hauling, mining, and large-scale construction projects. Think of cement trucks, dump trucks, and tractor-trailers. Examples include the Peterbilt 579,  Freightliner Cascadia, and the Kenworth T680. 

CONCLUSION

If you work in the trucking industry or aspiring to, then understanding the different classes of commercial vehicles is vital. It helps you navigate selecting the appropriate truck for the job. For example, while light-duty trucks are more suitable for local deliveries, they are not designed for long-haul freight and heavier cargo. Heavy-duty trucks are also not ideal if you’re transporting lighter loads as they consume more fuel and cost high to maintain. 

Ultimately, understanding vehicle classifications aids in budget considerations. The heavier the truck, the higher the expenses. By properly aligning your class of vehicle with your business needs, you can conveniently plan for financing and save costs. The good thing is that Inspired Funding helps truckers to get the best commercial truck financing. With just one contact, you can get the financial support you need to purchase the right truck for your business.

ABOUT INSPIRED FUNDING

If you’re looking for the best financing for your truck business, Inspired Funding is here for you. With tailored financing plans and a range of flexible options, we make it easy for you to get the truck you need and make paying for it a breeze.

Inspired Funding has been helping businesses finance various commercial vehicles, including semi-trucks, cargo vans, dump trucks, and other essential heavy equipment to keep your business moving. We offer competitive interest rates and affordable down payments to fit your budget.

Worried about credit? No problem! We can help you navigate credit score challenges by providing financing solutions designed to get you on the road faster.

Ready to finance a bulldog or a dragon wagon? Give us a call today to get started!

According to industry reports, truck leasing has witnessed exponential growth over the years. In 2022 alone, there were over 1.8 million truck leases, which shows that more businesses are buying into this financing option. The benefits are proof of this preference. 

Commercial truck leasing is a viable alternative to purchasing as it offers reduced upfront costs and effective cost management in comparison.

But there’s much more to understand about this option. In this article, we’ll unpack the essentials to help you make informed decisions for your business.

WHAT IS COMMERCIAL TRUCK LEASING?

New and experienced truckers have one thing in common: the need for vehicles to run their daily operations.  There are cases when purchasing does not seem feasible due to the financial commitment. This is where leasing shines as a practical alternative option to provide truckers access to the vehicles they need to keep business moving. 

Commercial truck leasing is a contract arrangement with a dealer to use a truck for a period while making regular installment payments. It can be an ideal option if you seeking the flexibility to upgrade your fleet without making the huge capital investment that comes with purchasing. Apart from low financial commitment, there are other benefits such as predictable monthly payments, and the ability to upgrade vehicles to newer models. However, it also comes with considerations like mileage limitations and the absence of equity in the vehicle. 

BENEFITS OF LEASING A COMMERCIAL TRUCK

FLEXIBLE CREDIT REQUIREMENTS

Compared to purchasing, the credit score requirement for leasing is more lenient. Lenders are more likely to consider other factors such as time in business and stream of income. Other lenders like Inspired Funding offer solutions without minimum credit score requirements. So if you have a less-than-perfect credit score, this is an option you want to explore. 

LOWER UPFRONT COST

The initial investment needed for minimal, as you will not be making a large down payment. This can take the financial strain off your business allowing you easy access to a truck without impacting your pocket. 

IMPROVED CASH FLOW

Monthly payments are often predictable and fixed, making it easy for you to plan and budget your revenue with ease. Together with the lower upfront cost, you can have better cash flow management that can be wired to other business expenses like fleet expansion, and operation costs among others. 

ACCESS TO NEWER TRUCK MODELS

Truck brands tend to release newer models with the latest technology and safety features. For a purchased vehicle, switching to a new model with require you to either buy a new truck or dispose of the current one. On the other hand, you can exchange your leased vehicle for a better model at the end of the term. 

AVOIDANCE OF DEPRECIATION RISK

You’re not financially responsible for the value depreciation of your vehicle since you’re not taking full ownership. The lessor bears the risk of any decline in the market value.

LEASE-TO-OWN

Exploring the lease-to-own program guarantees the option to purchase the truck at the end of the lease term, facilitating ownership. This arrangement can enable you to manage cash flow effectively without the need for a substantial upfront investment. 

DRAWBACKS OF COMMERCIAL TRUCK LEASING

Just as leasing holds many benefits that may align with your interest, it is also important to consider its potential drawbacks.

LACK OF OWNERSHIP AND EQUITY

While you get to use the vehicle for an extended period, this does not translate to full ownership after the payment period. Because of this, your monthly financial commitment will not build equity.

MILEAGE AND USAGE RESTRICTIONS 

Trucks can come with some restrictions such as mileage and the overall usage of the vehicle. When considered, these restrictions can have a negative impact on your business operations. Plus, exceeding this restriction can result in penalties fees, and additional costs.

MAINTENANCE RESPONSIBILITIES 

Depending on the terms, you may still be responsible for maintenance and repairs, which can add to your expenses. 

INSURANCE C OSTS

Leasing companies may require higher insurance coverage levels, leading to increased insurance premiums. 

HIDDEN COSTS

It is not uncommon to have a deal with lessors with ambiguous and unclear terms of contracts. In situations like this, contracts can be laced with hidden fees such as administrative fees and unfair termination of the agreements. To avoid this, ensure you do your research and deal with only trusted lessors. Also, review agreements before you sign. 

LEASING VS. PURCHASING

In the world of commercial truck financing, leasing, and purchasing are usually two options businesses consider. Both fulfill different purposes and the decision on the one to choose is based on various factors and considerations. We have broken down the common differences between these two options in the table below to help understand better. 

FACTORS	PURCHASING	LEASING
Ownership	Full ownership upon completion of payment.	No ownership. The company retains ownership after the agreed-upon period.
Upfronts costs	Requires initial down payment.	Lower upfront cost, usually the first month’s payment.
Maintenance	Owner is responsible for all maintenance and repair costs.	Agreements often include maintenance services.
Flexibility	Less flexibility, as changing the vehicle requires first disposing of the initial one	Higher flexibility to upgrade to new models at the expiration payment term.
Tax benefits	Interest expenses may be tax-deductible.	Payments are deducted as business expenses.
Mileage restrictions	No mileage restrictions.	Includes mileage limits.
Customization	Full freedom to modify or customize the vehicle as needed.	Limited or no ability to customize.

STEPS TO LEASE A COMMERCIAL TRUCK

If you think this is a good deal for you, then it is essential that you understand the process that guarantees the best deals. We have narrowed them into the following for you:

RESEARCH LEASING OPTIONS AND COMPANIES

Start by researching available options such. Then proceed to source reputable companies that offer commercial trucks suitable for your business needs. Ensure you do a comprehensive review–ask around, and check reviews online. 

COMPARE TERMS

Different companies will have different terms and conditions. Scrutinize these details and check terms on mileage restriction, maintenance liabilities, credit requirements, and duration. 

Also, ask about hidden fees and potential penalties. Doing this will help you assess the one that is more aligned with your business goals and help you make more informed decisions. 

PREPARE NECESSARY DOCUMENTATION

Just like other types of commercial truck financing, you will need to tender necessary documentation like your personal information, business record, credit history, bank statements, tax returns, and proof of insurance. 

FINALIZE THE AGREEMENT

After your documents and application have been reviewed and approved, it’s time to finalize the agreement. Have a legal professional review the agreement to ensure clarity. Once satisfied with the terms, proceed to sign.

TAKE DELIVERY OF THE VEHICLE

The final stage is to have your vehicle delivered to you. Upon delivery, conduct a thorough inspection to confirm that it meets the specifications and is in good condition. 

GET THE BEST COMMERCIAL TRUCK LEASING DEALS WITH INSPIRED FUNDING

Whether you choose to lease a commercial truck or purchase it, there are a couple of factors that you must consider. One of these is your financing partner. You want to work with a transparent partner who gives you the support you need and sticks with you from the beginning of the process to the end. Additionally, take the time to carefully review the terms and conditions to ensure they align with your specific needs and circumstances.

Inspired Funding has helped many businesses to finance their trucks. we also guarantee that you enjoy some benefits when you opt for commercial truck leasing such as no credit score requirement, no hidden charges, and access to constant support. Start your journey today and take the first step to hassle-free commercial truck leasing.