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How do semi-truck loans differ from regular truck loans?
Semi-truck finance is treated as commercial equipment lending. Lenders evaluate the rig's earning potential, maintenance costs, residual value and usage profile. They will compare major brands and models like those from Kenworth, Volvo, Freightliner, Peterbilt, and International because a known brand often retains strong resale value.
What credit score is typically required?
Many lenders expect a score above 600-650, but semi-truck specific lenders may approve lower scores when the applicant has solid industry experience or a contractual hauling agreement. The stronger your down payment or business plan, the better your odds.
Can a first-time owner-operator get approved for a semi-truck loan?
Yes - but you'll need to show driving history, load contracts or dispatch records. If you're transitioning from company-driver to owner-operator, expect higher down payment or shorter loan term to mitigate risk.
What down payment should I plan for?
Down payments typically run 10%-25% of the rig's value. A newer, high-spec unit usually requires less; older used units or higher risk profiles might need closer to the upper range.
Are used semi-trucks eligible for financing?
Absolutely. Lenders often finance used heavy trucks, but age, mileage, and condition matter. Models from brands like Volvo, Kenworth, and Peterbilt often qualify more easily due to strong parts network and resale demand.
What loan terms can I expect?
Terms for semi-truck loans often run 36-84 months. Newer long-haul rigs might be amortised over longer terms; vocational or high-mileage rigs often require shorter terms to avoid residual risk.
Is it better to lease or buy a semi-truck?
Leasing may reduce upfront cash and monthly payment, and can offer maintenance bundles. Buying gives you equity in the rig. The right choice depends on your business plan, expected mileage and resale horizon.
What operating costs do lenders assess?
Lenders review fuel, insurance, permits, maintenance and downtime - especially in long-haul operations across Canada or cross-border. A strong business plan that addresses these costs improves approval odds.
How fast can funding happen?
If your documentation is complete and the rig is identified, many lenders approve within 24-72 hours, with funds available soon after.
Can I finance with less-than-perfect credit?
Yes. For semi-truck loans, lenders may still approve weaker credit if there is strong cash flow, a large down payment, or reputable carrier contract. Expect higher interest rates or shorter terms.
What brand matters in heavy truck financing?
Brands matter a lot. Trucks from Freightliner, International, Peterbilt, Kenworth and Volvo benefit from strong resale and parts availability, which lowers lender risk and can improve terms.
What documents will I need to apply?
Prepare purchase quote or invoice, credit report, business income/contract proof, driver history, truck spec sheet, insurance quote or binder.
How do I manage depreciation and residual risk?
Lenders examine how rapidly the rig will depreciate and whether you plan to keep it long term. Buying a newer model from a strong brand helps protect your value and refinance options.
What are the risks if I default on a semi truck loan?
In default you risk repossession, damage to your business credit, and loss of equity in the rig. Lenders may charge recovery costs and pursue legal remedy since semi-trucks are high-value assets.
What is the first step to take to get approved for semi truck financing in Canada?
Identify your rig model and lender options, estimate payments via the truck loan calculator, gather your documents and apply for a semi-truck loan.
Expert Review & Editorial Standards
This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.
Jenna West
Financial Writer & Content Director
Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.
- 8+ years analyzing Canadian consumer lending
- Monitors FCAC and provincial regulatory changes
- Specializes in personal loans and alternative lending
Amy Orr
Financial Content Specialist
Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.
- Masters in Finance, University of Edinburgh
- Former hedge fund professional
- Published in major financial publications
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Last Updated: October 18, 2025 | Next Review: Ongoing monitoring
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