Your Loan Quote
It takes about two to three minutes to get a quote for trailer financing. At Loan Monkey we give you access to a large network of lenders and one of them may be able to get you your offer, even if you have bad credit. There is no obligation whatsoever, so why not get started right away?
Trailer Loans With Bad Credit
Like all bad credit loans, trailers financed with bad credit will of course have higher than average fees and interest. This is to be assumed.
What you need to decide before taking out your loan is if the higher interest and fees is worth the cost. If you need the trailer for a work purpose, it obviously might make sense because you will be earning with it. If you intend to use the trailer for recreational reasons, the decision is not quite so clear.
Ultimately, you need to weight the cost versus the benefit. If the cost of not having the trailer is worse than the loan fees and interest, take the loan. If you can due without the trailer or simply postpone your purchase, it might be better for you to not take the loan.
Accepting A Loan
If you ultimately decide to accept a trailer loan, you need to give one thought to a key thing, whether you can easily pay the loan back. Do not assume that the money to make your loan payment will come out of nowhere, have a plan.
Make up a budget and fit the loan payment into it. Is there room for you to still live comfortably or will there be tight times ahead. If the budget looks like it will be tight, you either need to skip the installment loan or make some extra room in the budget. Luckily, there are a lot of ways to make room in a budget.
Stretching Your Budget
You have two ways to stretch that budget in order to afford your trailer loan.
The first is to increase your income and this is easier than you might think. The economy is rocking right now which means that businesses need employees. Major retail pays better than ever and can get you a shift at virtually any hour. Even Walmart starts at over $13 an hour. If you live close to an Amazon warehouse, that machine runs nonstop and pays over $15 an hour to start. Another option, although there are many more, is Uber and Lyft. Drive on your terms, when and where you want and earn an extra $25 an hour.
Just a few hours a week with any of the options above can allow you to easily come up with the needed money to pay for that trailer loan.
Another option to create room for a trailer payment is to simply cut your other bills. This sounds tough, but honestly, when was the last time that you took a look at your budget and tried to trim it down. There are dozens and dozens of ways to cut your monthly expenses.
The easiest is by cutting the money you spend on food. Yes, you have to eat but you do not have to eat out. Cut out fast food and start brown bagging it. In addition, add cheap staples to your nightly meals. Things like potatoes and rice can be made in dozens of tasty ways and cost just cents a portion. Just cutting a food budget would be enough to cover a modest $200 loan payment.
Besides food, there are a lot of other ways to trim the fat off of your budget. Cut out cable, shop for cheaper insurance or even trade in your vehicle, as long as you can get another one that can tow your trailer of course.
Choosing Your Trailer
If you have decided to take a trailer loan and can afford it, now you have to shop for your trailer.
If you went with the lender from our network that made you an offer, you will have a unique advantage in this regard. You will be a cash buyer because your lender will deposit money directly into your account. This will allow you to shop any dealer that you want and can also allow you to look into the more affordable used market.
When picking your trailer, remember one thing, you should choose a bit more than you need.
There is nothing worse than having less trailer than you need. If you know that you might be hauling 4000 pounds in cargo, get one that will handle that, plus some. That will give you room to grow.
A standard base axle will hold about 3500 pounds so with a single axle trailer, you will get a little bit over 2000 pounds in cargo capacity after you calculate the weight of the trailer.
With a tandem axle enclosed trailer, you would get about 5000 pounds in capacity after accounting for the weight of the trailer. This is of course with standard capacity axles and heavier capacity are available.
Be sure to shop carefully so that you get a trailer that suits your needs now and in the future. Now is not the time to be cheap. If spending an extra 1000 dollars now can save you from having to upgrade int he future, it is the thing to do.