SEMI-TRUCK OVERHAUL COSTS AND FINANCING OPTIONS
Is your semi-truck consuming more oil than usual? Or perhaps you’ve started hearing some strange noises as you drive? It might be time to consider giving your engine a fresh lease on life with an overhaul.
Overhauling a semi-truck engine is a valuable investment with significant returns. However, the challenge often lies in securing the necessary funds. The great news is that there are several financing options to choose from. Let’s walk you through everything you need to know, step by step.
UNDERSTANDING SEMI-TRUCK ENGINE OVERHAULS
The process of overhauling your semi-truck involves a comprehensive examination of your truck’s engine to identify faults and replace damaged parts to ensure your engine is as good as new. Unlike your regular commercial truck repairs, overhauling deals primarily with the engine.
An experienced mechanic will disassemble the engine, and inspect and fix or replace faulty parts affecting the truck’s performance. When done correctly, a well-done overhaul should bring your truck back to life and make it operate more efficiently.
SIGNS YOUR SEMI-TRUCK NEEDS AN OVERHAUL
Typically, your truck will show signs that it needs an overhauling. In other cases, your mechanic would recommend it as the best way to get your vehicle working efficiently. Regardless, the signs that you may need an overhauling include:
- Increased oil consumption
- Presence of water in the oil
- Engine knocking noise
- Excessive exhaust smoke
- Low fuel efficiency
- Reduced oil pressure
- Presence of oil sludge
Whenever you notice any of these signs in your semi-truck, it is advisable to visit a qualified mechanic who can assess if an engine overhaul is necessary.
BENEFITS OF ENGINE OVERHAULING
Choosing to go for an engine overhaul is great for many reasons. For one, it is like giving new life to your semi-truck, allowing it to run more efficiently without the need to frequently consult professionals for a wear in your engine. Let’s explore why overhauling your semi-truck is not just a repair but a smart investment that adds long-term value:
- Extended engine lifespan: An overhauled engine functions like a new engine which makes it strong enough to go additional miles thus extending its service life.
- Enhanced performance: Strong engines don’t need overhauling. Rebuilding an already worn-out engine is like jerking life into it to make it run smoother and better without the need for concern when you are on the road.
- Cost-effective: Compared to purchasing a new engine or a truck, overhauling is more economical since it only requires fixing and replacing damaged components of the engine.
- Reduced downtimes: A well-overhauled engine reduces the possibility of future breakdowns and ensures your truck spends more time on the road than at a repair shop.
COST OF OVERHAULING
Engine overhauling is no small expense and you can expect to spend up to or more than $10,000 for it. The cost is not fixed and can be determined by a couple of factors, running from the type of engine, the level of wear, the cost of replacing parts, and the labor costs. However, when compared to the cost of purchasing a new engine, overhauling tends to be a more cost-effective option. It allows you to save money while you still enjoy extended lifespan and efficiency on your truck.
FINANCING OPTIONS FOR SEMI-TRUCK OVERHAULING
While engine overhauling is a cost-effective option compared to purchasing a new engine, there is no denying that it can come with financial strains. It still requires a lump sum of your cash flow which can impact business operations in a significant way. Rather than planning to foot the expenses out of pocket, you can explore a couple of financing options guaranteed to help you reserve your funds. The conditions of these financing options vary from one to the other and we have explained some of them here to help you make the better choice.
EQUIPMENT FINANCING
This is a loan option designed to help business owners fund equipment purchasing and repair. Loan amounts are often determined by the extent of repair, and the collateral is the equipment purchased or repaired.
BUSINESS LINE
Revolving credit line that allows you access to funds as needed, and interest is only paid on the amount used.
COMMERCIAL VEHICLE REPAIR LOAN
Commercial vehicle repair loans are designed to help vehicle owners to cover the costs of repairs. Generally, they are easier to get if you go through servicing facilities or lenders who offer tailored loans for truck owners.
TERM LOANS
These are lump sum loans with fixed repayment terms and interest rates that you can use for overhauling. Repayment schedules are spread over a long period ranging from 1 to 10 years.
EMERGENCY BUSINESS LOANS
If your need for an overhaul is urgent, then you can rely on emergency business loans that give you access to the needed funds in a short period like 24 hours. This loan type is designed to quickly help your business get out of a jam quickly.
SPECIALIZED ENGINE OVERHAUL FINANCING
Specialized truck financiers are also great options to look out for when you’re seeking out a loan to overhaul your semi-truck. They offer loans for truck drivers with financing programs for truckers with bad and no credit history.
FACTORS TO CONSIDER WHEN CHOOSING SEMI-TRUCK FINANCING
Just like choosing to overhaul over purchasing, choosing the financing option is an important decision. Nothing compares to opting for financing that does not add additional financial strain to your business but allows you to get the best terms and peace of mind over the repayment period. Here are some things you should look out for when deciding on the financing option to chose:
COST OF SEMI-TRUCK OVERHAUL
With many financing options to choose from, you want to select the one that covers the full cost of the overhaul. This can help you filter out options that can only part with a fragment of the total cost.
LOANS INTERESTS AND FEES
All loan types have their unique way of calculating their interest and rates. So don’t be hasty to choose the first option you come across. Take time to compare interest rates, processing fees, and other hidden charges that can increase your total repayment amount.
REPAYMENT TERMS
Carefully assess the repayment schedule to see what suits you. While longer repayment schedules tend to reduce monthly payments, making it easier for you to pay up, it can increase the total interest paid. So weigh the pros and cons.
CREDIT REQUIREMENTS
It is not uncommon for lenders to assess your capability to pay back the loan based on your credit history. The good thing is that they all have different credit score requirements and your score is a bargaining factor in determining loan terms.
APPROVAL TIMES
Between credit checks and processing time, some lenders can take time to approve loans. And if you rely on your truck to generate income, being out of service for so long will do your business no good. Regardless, some lenders offer expedited approval processes, enabling you to commence repairs promptly.
STEPS TO SECURE FINANCING
PREPARE DOCUMENTATION
Every lender wants to see vital financial, business, and vehicle documents before granting a loan. So make sure you have them handy and ready. These documents include the following:
- Proof of truck ownership
- Financial statements and bank records
- Credit history lenders
RESEARCH REPUTABLE LENDERS
Assess your financial and business situation before you go shopping for lenders. Evaluate different lender’s loan conditions, interest rates, repayment schedules, and approval times to see the one that works best for you. Also, make sure you ask relevant questions for clarity’s sake.
SUBMIT APPLICATION
Once you have an understanding of lender requirements, move to the stage by submitting your loan applications.
REVIEW LOAN OFFERS
Carefully review the loan offers you get. Read the terms and conditions, and if possible, have a professional go through it for you. This will help you grasp the terms of the contract before you sign anything. Also, look out for hidden charges to help you avoid surprises.
FINALIZE THE APPLICATION AND RECEIVE FUNDS
Once all the T’s are crossed and the I’s are dotted, you can finalize the loan process with a handshake and walk away with your funds.
FINANCE YOUR SEMI-TRUCK OVERHAUL WITH INSPIRED FUNDING
Overhauling your engine is the decision your semi-truck will thank you for. It allows you to enjoy the benefits of a smoothly running truck, helping you meet your daily delivery targets without frequent visits to the mechanic.
When it comes to financing, you do not have to break the bank or be subject to long loan approval processes or seemingly unending credit checks. At Inspired Funding, our goal is to keep you moving forward by ensuring truck breakdowns don’t bring your business to a halt.
ABOUT INSPIRED FUNDING
Inspired Funding has helped hundreds of truck companies secure the vehicles they need to succeed. Whether you’re expanding your fleet, starting a new business, or navigating bad credit, we’re here to make financing simple and stress-free.
We specialize in truck financing designed to get your business on the road to success. From box trucks and dump trucks to cargo vans, semi-trucks, and other vocational vehicles, our process is easy. Get guaranteed low payment on used trucks and no hard pulls on credit scores.
With competitive interest rates, flexible down payments, and manageable repayment plans, you can focus on growing your business without the stress. Start your journey to funding today!
