In an effort to help trucking fleets expand when they are having difficulty obtaining traditional bank financing, The American Truck Group (ATG) said it is offering a Rent to Buy contract, whereby the customer makes payments and National Truck Funding, a division of ATG, will borrow the funds to purchase the truck. At the end of the contract, the customer has the option to purchase the truck at a low cost.
With the shortage of trucks to move freight, the American Truck Group says its program offers trucking companies the opportunity to expand despite financing concerns.
“When a trucking company has been able to succeed during the recent ups and downs of the economy and has been able to pay their bills on time, it says a lot about their strength. When a trucking company has also been able to properly service their fleet and maintain a good safety record as well, it may be time to explore growth opportunities,” said Louis J. Normand Jr., American Truck Group CEO.
Normand said the company’s National Truck Funding affiliate provides a simple alternative to traditional financing that offers owner-operators and trucking companies the opportunity to add trucks to their fleet while avoiding traditional financing sources.
Additionally, ATG approves those that have tax liens or have had a bankruptcy in their recent past. Normand stresses that American Truck Group “just doesn't care about this when approving a customer.” The program requires no credit check on either the individual or the company and very little paperwork.
“Even if the trucking company has great financials and cash in reserves, having access to an alternative program that will provide the funds for the truck expansion project is a real value,” Normand added. “There is also an advantage that because the American Truck Group program is not financing, then there is no debt to be counted against the customer when he does need to obtain traditional financing.”
The trucks that are available within the American Truck Group program are late model used over-the-road Class 8 trucks including Volvo, Kenworth, Peterbilt and Freightliner brands. Most of the trucks are 2007 through 2011 models, all are DOT ready and carry both a 30-day “bumper to bumper” protection plan as well as a 50/50 48 month protection plan, Normand said.
Normand said the program is possible because American Truck Group has attracted financing through accredited investors are able to realize a high rate of return up to 12% APR P&I over 48 months secured by the truck as an asset with the investor showing as lien holder on the title.