Dump Truck Loans

A dump truck is used for transporting material such as sand, gravel and demolition waste to and from construction sites. Additionally, a dump truck can be used for transporting coal. Typically, dump trucks are equipped with hydraulics that allows the body to tilt so that its contents can fall out. 

Because a dump truck is a type of specialized equipment, that often comes with an expensive prove tag, you may need financing to purchase one. Many construction and similar companies require this type of equipment to operate. To learn more about dump trucks and financing, continue reading below.

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Types of Dump Trucks

There are many different types of dump trucks that are designed for various applications. The needs of your business will determine which type you need. Below are a few of the most common variations. 

  • Standard Dump Truck
  • Semi-Trailer End Dump Truck
  • Side Dump Truck
  • Haul Truck
  • Winter Service Vehicles

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Difference Between Dump Truck Leasing and Financing

For those considering the purchase of a dump truck, there are several options available to assist with what can be a significant capital expenditure for your business. Generally, the decision is either to lease or finance.

Dump truck financing is considered to be a form of commercial truck or heavy equipment financing. Much like a typical auto loan, the dump truck itself will serve as collateral on the loan and you will be expected to repay the amount being financed in installments (with interest). Many lenders will require a down payment when financing the purchase of a dump truck.

Leasing a dump truck is similar to financing in the sense that you will be expected to make regular payments with interest. The main difference is that you will not own the dump truck at the end of the lease term. Depending on the terms of the lease, you will either have to return the truck at the end of the term or you may be provided with a buyout option to purchase the truck at the residual value. 

Leasing may be more attractive for those who want to avoid dealing with maintenance after the warranty period or wish to have monthly payments that are less than that of a loan. Although monthly payments for leases may be lower, they typically come with higher interest rates than loans which means that your cost of borrowing is actually higher. In addition, you will have equity in a financed truck whereas a lease doesn’t always add value, it’s just a cost. 

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Costs Involved with Dump Truck Financing

The costs of financing a dump truck will vary depending on factors, such as the type of dump truck you are looking to purchase, your business’ qualifications and the institution providing the financing. As the dump truck being purchased serves as collateral to the loan, the financing conditions are usually more friendly than other types of business loans. Let’s take a look at some of the typical components of a dump truck loan.

  • Term. The term of financing generally depends on the estimated life of the dump truck being purchased. Usually, this ranges from two to six years.
  • Interest. As a commercial truck or heavy equipment loan, interest rates are typically lower than for other types of business financing. Interest rates can start as low as 4%.
  • Loan Amount. Some lenders may finance the entire value of the dump truck which can be up to $500,000.
  • Down Payment. While certain lenders can finance the entire cost of the dump truck, most will require you to pay a down payment. The amount of the down payment required depends on the truck’s conditions as well as your business’ qualifications but usually ranges from 10% to 25%. 
  • Collateral. The dump truck itself serves as collateral for the loan, but you may also be asked to sign a personal guarantee if your business has a low credit score or limited credit history.

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Am I Eligible for a Dump Truck Loan?

To secure financing for a dump truck, you will need to provide your lender with the necessary documentation that shows your ability to repay the loan. Some examples of items they may ask for include the following:

  • Personal identification (e.g. driver’s licence)
  • Employee Identification Number
  • Business licences and documentation (e.g. articles of incorporation)
  • Tax returns
  • Cash flow statements
  • Bank statements
  • Financial statements

Costs related to the maintenance of your dump truck as well as the down payment you are making on the loan are other factors that your lender may consider. They may also take your personal credit score into account if your business has a limited credit history. If your personal credit score is low, you may be subject to a higher interest rate even if you sign a personal guarantee.

Where Can I Finance a Dump Truck?

There are a few different institutions that offer dump truck financing, as listed below. Fortunately, you have a few options which will make it easier to find a loan that suits you and your business. 

Banks or Credit Unions

Traditional banks offer commercial financing programs that provide loans or leases to businesses to purchase commercial vehicles or equipment. Terms typically range from three to eight years and interest rates can be either fixed or variable. The downside is that it can be difficult to qualify for traditional financing, especially with unconventional income or poor credit. 

Alternative Lenders

There are a number of online lenders that specialize in dump truck financing. Some benefits of using an alternative lender include the fact that they take more variables into consideration during the approval process than simply your credit score, they may be able to process the loan or lease faster than a traditional bank, and some offer highly flexible payment schedules that fit your budget.


Some manufacturers offer in house financing when you purchase a dump truck directly from them. Their in-house financing program allows you to finance your truck through a lease or loan without having to apply at a separate institution.

Obtaining The Equipment You Need

Purchasing a dump truck can be a significant expense so it is important to evaluate all financing options and select the one that works best for you and your business. Be sure to compare quotes from multiple lenders in order to get the best available rates and terms.  If you’re interested in being matched with a lender who specializes in dump truck loans and financing for other types of heavy machinery, Loans Canada can help.

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