Used Bus Financing choices explains how to get loans for new and used buses and motor coachs
Bus
Financing
Bus loans and financing can be the most difficult part of purchasing a bus, especially if you are buying a used coach. Financing is where many dealerships make huge profits at your expense, through add-ons, higher rates, special dealer fees. Most large bus dealers offer great bus financing in-house and should always be compared and considered. They often have a large number of programs specially targeting buses. They easily compete with typical banks and credit unions.
First, settle on a bus that you want from our exclusive bus inventory without discussing financing, settle on a price, agree to a trade in value (if you have one), then tell the salesman you are willing to discuss any financing options they have but do NOT tell them or show them the terms you have already gotten approval for from your bank or other bus loan financing source.
The companies shown on this page are highly reputable bus financing institutions that may be of value to you in at least getting a free quote from them. Spend a little time now seeing what they offer BEFORE you visit the bus lot and get a bus loan.
Minimum bus loan amount - I never see loans processed in amounts much less than $45,000 because the amount of interest earned for the bank is not worth the risk if they have to repo it. The bank spends the same amount to repo your 25 year old $30,000 GMC conversion as it does to repo a new $500,000 Prevost Entertainer.
Loan term length - many companies will not loan on a bus for a term of less than 5 years. Most larger companies will loan for as long as 12 years since they often see the bigger coaches as investments in a serious company or business.
Down payment - Many bus loans require a 15% to 25% down payment. If you have great credit you may qualify for special programs that have zero down payment. Credit score determines this.
Bus loan interest rates - The interest rate depends on your loan total, expected down payment, credit profile and the bus value of your bus. Finance companies will want to process your bus loan app BEFORE discussing terms. This is normal and since they can often complete your application in an hour, it shouldn't be a sticking point.
Bus makes and models that are financed - Many banks only want to loan on new expensive buses. If you're getting an old MCI 7 or double decker or other non conforming coach, ask up front, before you get into the hour long application process..."Do you loan on this kind of bus?" If they just stare at you when you say Setra, or on the Internet application if "setra" for instance isn't in the "drop down box that asks for the type bus you are buying" for example, then move on.
Loan application fees - many companies charge to find out if they can loan you money. Do not pay it! INSIST on a free approval or denial. If a company is not willing to take a small risk of checking your credit do you really think they will loan you $100,000? Don't waste your time.
Financing an older bus - It is difficult to finance an older bus without really good credit. Companies can go back on 12-15 year old coaches is it is a real solid motorhome with a serious legitimate survey or appraisal on it. Other companies will not touch anything older than 7 years regardless of value, credit score, or downpayment. Ask FIRST if they loan on your year bus so you don't waste time filling out an application for nothing.
Getting a bus loan AFTER you bought the bus - Some banks have cash recapture programs which allow you to buy a bus using cash, like when you stumble on a great incredible deal or distress sale and need to by it right then. Then they give you the loan later and take possession of your title until payoff. This can typically be done up to 4-6 months after you buy the bus, but the sooner the better. It's almost like getting a loan to buy from yourself.
Credit score - The Best companies that will finance you on an bus loan without up front application fees or credit check fees, who have good rates, and can get it done in an hour, require a credit score of 600 - 640 or higher. If your credit score is not that good you will need to be more flexible in your plans and in the interest rate you accept.
Bus Loan calculation - Make sure the loan you get is a simple interest one. This way you only pay interest on the principal you owe, and that amount gets reduced every payment you make. If you don't find a bus to finance in our online inventory contact us today and we will locate one for you! We have 14 other sources of inventory and will be glad to find you a bus loan or financing.
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