1. • Designed for purchasing brand-new commercial vehicles. Lenders may offer competitive terms due to the vehicle’s higher value and lower risk of immediate depreciation.

2. Interest Rates:

   • Often lower for new vehicles compared to used ones because they are less risky for lenders. Manufacturers or dealers may also offer promotional rates.

3. Loan Terms:

   • Can be flexible, typically ranging from 24 to 60 months or more, depending on the lender’s policies and the vehicle’s expected service life.

4. Pros:

   • Lower Interest Rates: Generally lower than those for used vehicles.
   • Latest Features and Technology: New vehicles come with the latest technology, fuel efficiency, and warranty coverage.
   • Potential Manufacturer Incentives: Special offers or rebates from manufacturers or dealerships.

5. Cons:

   • Higher Purchase Price: New commercial vehicles are more expensive, leading to larger loan amounts and potentially higher monthly payments.
   • Depreciation: New vehicles depreciate faster, which can affect the vehicle’s value and the loan-to-value ratio.

Used Commercial Vehicle Loans

1. Description:

   • Tailored for purchasing pre-owned commercial vehicles. The loan amount and terms may vary based on the vehicle's age, condition, and mileage.

2. Interest Rates:

   • Generally higher than for new vehicles due to the increased risk associated with older vehicles. The rate may also vary based on the vehicle's history and condition.

3. Loan Terms:

   • May be shorter compared to new vehicle loans, typically ranging from 24 to 48 months. Some lenders may offer longer terms, but this can increase the total interest paid.

4. Pros:

   • Lower Purchase Price: Used vehicles are less expensive, resulting in smaller loan amounts and potentially lower monthly payments.
   • Reduced Depreciation: Used vehicles depreciate at a slower rate compared to new ones.

5. Cons:

   • Higher Interest Rates: Often higher due to the vehicle’s age and potential maintenance needs.
   • Potential for Higher Maintenance Costs: Older vehicles may require more frequent repairs or upkeep.