How to Finance a Used Trailer

As you may know financing a used trailer purchase is not the same as financing a home purchase. With these purchases are several road blocks along the way to successfully obtaining financing for a used trailer. Sadly several of the traditional home purchase financing options, are not available for these purchases. 

1. Ensure that your credit score is above 750 before you begin this venture. While there are programs for home purchases for individuals with less than ideal credit the same is not true when financing a used trailer. You should request copies of all three credit reports to determine whether errors exist on these reports. It is also possible to receive your credit scores along with these reports although it depends on the website. Annualcreditreport.com provides free credit reports for all three credit reporting agencies. If you wish to obtain your credit scores you are however required to pay a fee. 


2. Ensure that your work history with your current employer exceeds six months. Most mortgage companies require that you work for your current employer at least six months. However you are unable to use a traditional mortgage to finance a used trailer. For this reason this requirement may exceed this standard six-month requirement. 


3. Ensure that you have a location for this used trailer. Land and trailer financing packages are not available for used trailer purchases. For this reason you are required to have an existing location. 


4. Ensure that you already have utilities set up on your land for this trailer and that you have a septic tank already installed. With the purchase of new trailers it is possible to add the cost of utility setups and septic tank installations to the loan. This is not possible for used trailers. 


5. Apply for a loan to finance your used trailer at a bank or financial service. These loan packages are not mortgages but actually consumer loans. For this reason you are only allowed to borrow the purchase price of the used trailer. Some banks and financial services do require a down payment. If this is the case you would actually have two loans instead of one. 


6. Hire an inspector to inspect and appraise the trailer. During the inspection the inspector is determining whether problems exist within the used trailer. If too many problems exist, especially problems that are not repairable, the bank or financial service could deny the loan. 


7. Ensure that you have access to a trailer moving company to relocate your used trailer. This cost is not included in the cost of purchasing the trailer. You are responsible for this moving cost.