Can you get auto financing for a bus?

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Recently, there has been greater interest in retrofitting old school buses and transforming them into motorhomes or mini houses – called skoolies or a little house on wheels (THOW). Or maybe you just want a bus for your family trips! Whatever your reason for wanting a bus, how do you get one?

Can I finance a bus?

Whether you can get a loan for a bus depends on which lender you are looking for, the condition of the bus, and how you will use it.

Auto lenders have restrictions on what they can approve for funding. There are also different rates and types of loans for different vehicles, such as passenger cars, commercial trucks, recreational vehicles, etc.

When it comes to financing a bus for personal use, it can be difficult to get a secured loan, especially if the bus you want is over 10 years old. Most traditional and subprime lenders require borrowers to finance a vehicle less than 10 years old and less than 100,000 miles. And if you can find a newer bus, a lender may always be hesitant to extend the financing.

Typically, buses are not eligible for home loans, auto loans, and recreational vehicle loans, according to TinyHouseCommunity.com. They don’t qualify for a mortgage because they don’t have a permanent foundation. If you need financing to get your hands on a bus, you may need to apply for a personal loan.

Personal loan for a bus

Personal loans are unsecured loans, which means that they are not guaranteed by anything, unlike a car loan. Auto loans are secured by the vehicle, and if you don’t repay the loan, the lender may begin the repossession process to get the car back, as it is the collateral for the loan.

With a personal loan, you can use the funds for anything you want, including a bus. However, because personal loans are unsecured, their interest rates are usually higher than a regular car loan (this also depends on your credit rating). Lenders charge more interest for personal loans because there is more risk without collateral.

To get a personal loan, you will likely need to find a direct lender (such as a bank or credit union) and have a good credit rating. Direct lenders may require you to have a credit score of around 670 or higher. You also need to prove that you have the income to repay the loan, so it is necessary to have a stable income. Requirements vary by lender, and the amount you need also depends on the loan amount you need.

The personal loan is not an option?

If a personal loan is not an option for you, you may need to pay cash for the bus. Or, explore other options to find the cash you need. Such an option could be cash-out refinancing if you have a property with equity, such as a car.

If you don’t intend to use the bus for personal reasons, but instead need it for business use, you may need to apply for a business loan. In general, interest rates for large utility vehicles tend to be higher than for passenger vehicles. For commercial vehicle loans, lenders are generally more selective about the financing they approve because the vehicle is a business asset rather than just a car for personal use.

Need a car loan?

Here has Auto Express Credit, we aim to help borrowers finance their vehicle by matching you with a dealer who can help. With extensive experience in bad credit auto loans, our nationwide network of Special Financing dealerships are signed up with lenders who can help borrowers get the vehicle they need.

While we may not be able to help you get a loan for a bus, we could help you find a dealership that has signed up with subprime lenders. These lenders specialize in helping borrowers with bad credit get a car loan. If you need a passenger car with low credit, fill out our free auto loan application form and we will look for a special financial dealer in your area.

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