Business Auto Loans

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In today's tough economy, business auto loans have become a bit harder to come by.

I've found that a lot of lenders are requiring:

  • A personal guarantor
  • Money down (10-20%)
  • Smaller loan to value
    and
  • Shorter term

These lenders are requiring this even if the business has its own well established credit rating.

Before I begin here, please read my quick disclaimer.

Here are my 4 top picks for business auto loans:

  1. Bank of the West

    • Must have personal guarantor.
    • Very competitive rates.
    • Loan terms up to 84 months.
    • Loan to value up to 140% (of wholesale/invoice) including TT&L, plus back end products.
    • Full size trucks and SUV's limited to 110%.
    • Down payment not required for all loans.
    • Guarantor must have excellent credit history.

  2. Chase Auto Finance

    • Personal guarantor not always required, but approval is very difficult without.
    • Very competitive rates.
    • Loan terms up to 84 months.
    • Loan to value up to 130% (of wholesale/invoice) including TT&L and back end products.
    • Full size trucks and SUV's limited to 110%.
    • Down payment not required for all loans.
    • Guarantor must have excellent credit history.


  3. M and I Bank

    • Personal guarantor required.
    • Very competitive rates.
    • Loan terms up to 75 months.
    • Loan to value up to 105% (of retail/MSRP) plus TT&L and back end products.
    • Full size trucks and SUV's limited to 110%.
    • Down payment not required for all loans.
    • Guarantor must have excellent credit history.

  4. US Bank

    • Personal guarantor not always required.
    • No guarantor will lead to higher rate.
    • New vehicles 115% of MSRP plus TT&L, less any rebates.
    • Used vehicles 100% of *Black Book* retail plus TT&L.
    • No age or mileage restrictions.
    • Maximum loan term 60 months.

    With a personal guarantor

    • Very competitive rates.
    • Loan terms up to 84 months.
    • Loan to value up to 105% (of retail/MSRP) plus TT&L and back end products.
    • Full size trucks and SUV's limited to 110%.
    • Down payment not required for all loans.
    • Guarantor must have excellent credit history.

In addition, you can look to the manufacturers financing arm for business loans, i.e. Ford Motor Credit, GMAC, Nissan Acceptance, etc.

Most manufacturers financing will not always require a personal guarantor for business auto loans, but I've noticed that they are also tightening up and many seem to be offering 60 month or less terms, limited loan to value and unfavorable rates.

Edit: This last paragraph has changed with a solid business profile. For the most part business auto loans have very similar parameters as personal use auto loans.




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