New vs Used Boom Truck Loans

New vs Used Boom Truck Loans: What to Know Before You Decide

Boom trucks are powerful tools that offer flexibility and strength for industries like construction, utilities, and heavy lifting. But they also come with a high price tag—especially when buying new. If you're considering financing a boom truck, one of your first big decisions is whether to go new or used. And each path has pros, cons, and financing implications.

In this guide, we’ll break down the key differences between new vs used boom truck loans so you can decide what makes the most sense for your needs, budget, and business goals. For a broader overview, see our Boom Truck Financing guide.

What Is a Boom Truck?

Before we dive in, let’s quickly cover what a boom truck actually is. A boom truck is a commercial vehicle with a hydraulic crane mounted on its chassis. It’s often used to lift workers or heavy materials to high places—making it essential for jobs like tree trimming, electrical line servicing, sign installation, and more.

Boom trucks vary a lot in size, lifting capacity, and features. This also means their prices can range widely—from around $50,000 for a used unit to over $200,000 for a new model with advanced features.

Because of their cost, many business owners choose to finance boom trucks rather than pay out of pocket. That’s where boom truck loans come in.

Key Differences: New vs Used Boom Truck Loans

When deciding between new and used, it’s not just about the truck itself—it’s also about financing terms, lender requirements, and long-term costs. Here’s what to consider:

1. Cost and Down Payment

  • New Boom Trucks: New trucks come with a higher price tag, which means higher loan amounts and possibly larger down payments. However, some lenders offer more favorable terms for new equipment.
  • Used Boom Trucks: Used trucks are usually more affordable upfront. They can also come with lower down payments, but interest rates might be slightly higher due to the truck’s age and depreciation.

Tip: Some lenders have age limits for vehicles—often around 10 years. Older trucks might require more documentation or different loan structures.

2. Loan Terms and Interest Rates

  • New Trucks: Because they come with a longer useful life and lower risk of breakdown, new equipment tends to qualify for longer loan terms (up to 60 or even 72 months) and lower interest rates.
  • Used Trucks: Loan terms for used equipment typically range between 36–60 months. Interest rates may be higher because of the increased risk, especially if the truck is older or has higher mileage.

3. Maintenance and Reliability

  • New Boom Trucks: You get the peace of mind that comes with a manufacturer warranty and the latest equipment technology. That can mean fewer downtime issues and lower maintenance costs early on.
  • Used Boom Trucks: Used trucks may cost more to maintain, especially if they’re out of warranty. Before financing, it's wise to get a thorough inspection and review repair records.

Ask yourself: Will this truck be central to your day-to-day operations? If so, reliability might be just as important as the savings.

4. Approval Requirements

  • Lenders Prefer New Trucks: Some lenders feel more comfortable financing new equipment because the collateral has a longer life span and higher resale value.
  • Used Truck Challenges: Financing used equipment—especially for startups or applicants with lower credit—may require additional documentation, larger down payments, or a co-signer.

That said, many specialized lenders (like those in the commercial vehicle industry) understand the value of well-maintained used boom trucks and offer options tailored for these purchases.

Common Situations: When New or Used Might Be Better

To help you decide between new vs used boom truck loans, consider these common scenarios:

Go With a New Boom Truck If:

  • You’re running a high-volume operation that demands reliability
  • You want longer loan terms and possibly lower interest rates
  • You plan to keep the vehicle for many years
  • You can afford a larger down payment or have strong credit

Consider a Used Boom Truck If:

  • You’re starting a new business and want to keep costs low
  • Your budget is limited and you need affordable monthly payments
  • You found a well-maintained used vehicle with lower mileage
  • You plan to use the truck occasionally, not daily

It’s not always an easy call. The best decision depends on how the truck fits into your business plan and how much risk you’re comfortable taking on.

What Lenders Look for with Boom Truck Loans

Whether you’re buying new or used, most lenders will look at the same core factors:

  • Credit Score: Higher scores usually unlock better terms, but poor credit isn’t always a deal breaker.
  • Time in Business: If you're a startup, lenders may ask for a business plan, cash flow projections, or personal guarantees.
  • Truck Details: For used vehicles, be ready to provide specs, mileage, year, and inspection records.
  • Down Payment: Most lenders require at least 10%–20% down. Some programs offer flexibility for strong applicants.

Remember, every lender is different. Some are better positioned to work with new businesses or lower credit borrowers, especially those that specialize in commercial truck financing for poor credit.

Total Cost of Ownership

The monthly loan payment is only part of the picture. When weighing your options, look at the total cost of ownership—which includes:

  • Maintenance costs (which rise as a truck ages)
  • Insurance premiums (typically higher for new trucks)
  • Fuel efficiency (new trucks sometimes offer savings)
  • Depreciation (new trucks lose value faster)
  • Downtime costs (older trucks may require more repairs)

A lower monthly payment on a used truck might look good now, but if it results in more breakdowns, it could cost your business in the long run.

Prepping for a Boom Truck Loan

If you're getting ready to apply for a boom truck loan—new or used—start gathering:

  • Proof of business ownership
  • Bank statements or business financials
  • Personal credit report
  • Quotes or invoices for the vehicle
  • Insurance estimates
  • A brief statement about how the truck will be used

Having this information ready can speed up the process and improve your chances of approval, no matter which kind of loan you pursue.

Final Thoughts

Choosing between new vs used boom truck loans comes down to your budget, business needs, and appetite for risk. New trucks offer modern features, lower interest rates, and longer warranties—while used trucks help reduce upfront costs and keep monthly payments affordable.

There’s no one-size-fits-all answer. The key is to look at the full picture: how the truck will be used, how critical it is to your work, and how long you plan to keep it. By weighing the pros and cons and understanding the financing landscape, you can make a smart investment that keeps your business moving forward.

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