Apr 22
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Apr 18
25
Truck Financing: What is Collateral?
In the world of truck financing, collateral is described as an asset pledged to secure a loan, giving the lender the right to repossess the truck if the borrower is unable to make the required payments. When financing a new or used truck, the vehicle itself typically serves as the collateral. This arrangement allows buyers to obtain the funds needed to purchase a truck while providing the lender with a sense of security.
What is Collateral?
It’s a mutually beneficial arrangement that makes financing more accessible for borrowers and less risky for lenders.
For buyers, understanding the role of collateral can clarify how financing works as well as its benefits.
What Qualifies as Collateral?
Other Vehicles or Equipment: If the borrower or business owns any additional trucks, trailers, or high-value equipment such as construction and manufacturing machinery or agriculture tools, they can leverage these assets.
Personal Assets: In some cases, valuable personal assets like a secondary property, vehicle, motorcycle, or boat may be used. Although, this depends on the lender’s policies.
Real Estate: Commercial or business properties can sometimes serve as collateral, particularly those with substantial equity.
Inventory or Stock: The borrower can pledge other valuable inventory, offering added assurance to the lender and supporting loan approval.
How It Affects Your Loan
Loan Amounts and Terms: The value of the truck will influence the amount you can borrow. Lender’s often evaluate the truck’s market value to determine the loan amount and interest rate.
Insurance Requirements: Lenders often require borrowers have comprehensive and collision insurance on the truck until it’s fully paid off. It protects both you and the lender in case of damage or loss.
Loan Agreement: The loan agreement will specify the terms of the collateral arrangement. It will include your obligations to maintain the truck, keep it insured, and make the monthly payments. It will also outline what happens if you default on the loan.
Repossession Rights: If you default on the loan, by missing scheduled payments, the lender can initiate repossession of the truck to recover their investment. The process and laws around repossession vary by state.
Benefits of Using Collateral
Increased Approval Chances: Collateral can make it easier to get approved for a loan, especially if you have less-than-perfect credit or are a new business owner.
Lower Interest Rates: Offering collateral reduces the lender’s risk, which can result in more favorable interest rates. This can make your loan more affordable over time.
Higher Loan Amounts: Collateral can allow you to borrow more than you might be able to with an unsecured loan, which can be helpful when purchasing a newer, high-quality Kenworth truck.
Flexible Terms: With collateral backing the loan, lenders may offer more flexible repayment terms, such as extended payment periods or lower monthly payments, making it easier to manger your finances.
Understanding Collateral
Understanding how collateral works is essential. It can significantly influence your financing options, loan terms, and overall cost of your vehicle. It’s always important to make sure you are comfortable with the terms of the loan and your ability to make payments to avoid any potential issues with repossession.
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Apr 17
25
FET on New Kenworth Trucks
Buying a new Kenworth truck or upgrading your existing fleet can be a complicated and expensive process. To simplify things, it’s important to understand all of the costs associated with your purchase. FET is a federal tax applied to the sale of new heavy-duty trucks, often adding thousands to the final price.
At Coopersburg & Liberty Kenworth, we believe in transparency, which is why our pricing includes FET upfront. Learn how we help buyers avoid surprises and make informed financial decisions with confidence.
What is FET?
The Federal Excise Tax (FET) is a 12% tax on the sale of new trucks with a gross vehicle weight (GVW) above 33,000 pounds, trailers above 26,000 pounds, and tractors above 19,500 pounds. Gross combined weight typically refers to the total weight of a tractor and its attached trailer(s).
Here is a further breakdown of FET on new commercial vehicles provided by the IRS.
Truck, Trailer, and Semitrailer Chassis and Bodies, and Tractors (IRS No. 33)
The tax is 12% of the sales price on the first retail sale of each unit. The tax applies to:
- Truck chassis and bodies, except truck chassis and bodies suitable for use with a vehicle with a gross vehicle weight (GVW) of 33,000 pounds or less;
- Trailer and semitrailer chassis and bodies, except trailer and semitrailer chassis and bodies suitable for use with a vehicle with a GVW of 26,000 pounds or less; and
- Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer, except tractors that have a GVW of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less.
Kenworth Trucks with FET Included
However, at Coopersburg & Liberty Kenworth, we include the FET in our listed prices to be as straightforward as possible. We want to help our customers better understand their total costs upfront. Since FET is a substantial percentage of the truck’s retail price, it can add tens of thousands of dollars to your new purchase. Rather than seeing an unexpected tax at the end of a transaction, our pricing approach helps buyers make more informed decisions without hidden surprises.
Some dealerships may exclude FET from their listed prices, making a truck appear less expensive than it actually is. Our approach ensures buyers get the full, accurate price upfront. Because FET is part of the total truck cost, financing plans should account for it. Our financing experts can help structure loans that include FET, making it easier for buyers to manage payments.
Understanding FET is important when purchasing a new Kenworth truck. With our transparent pricing, our customers can make informed decisions that fit their budget and business goals.
New Trucks at Coopersburg & Liberty Kenworth
Coopersburg & Liberty Kenworth proudly operates two inventory locations in Pennsylvania and New Jersey, offering a vast selection of hundreds of new and used trucks. Whether you’re looking for a powerful workhorse for construction, a reliable sleeper for long hauls, or a versatile vocational truck, we have the right truck for every job. Plus, with some of the most competitive pricing on the East Coast, a knowledgeable sales team, and unmatched customer service, we make it easier than ever to get behind the wheel of your next truck.
View our New Trucks in stock | Contact Us | Schedule a Test Drive
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Apr 8
25
Kenworth Digital Display
A standout feature of the Kenworth interior is its digital driver display. It’s more than just a fancy screen – it’s a hub of essential tools, all conveniently located at eye level. From real-time alerts to adaptive controls to diagnostics and other features, this advanced display helps drivers stay efficient on the road.
15-inch Screen
Kenworth’s updated 15-inch digital display is all about making a driver’s job more convenient. It populates everything together in one easy-to-read screen so you can access critical information at a quick glance, all while keeping your focus on the road. No more fumbling with buttons or looking away from the road – everything you need is right in front of you.
Pre-Trip Inspection
When you start your Kenworth truck, the digital driver display runs through a check of 14 standard systems. A green checkmark means the system is functioning properly, orange signals a warning, and red indicates a critical fault. This built-in feature is designed to help supplement your pre-drive inspection. If your truck is equipped with driver assistance features or a tire pressure monitoring system, the display will also check these, providing a detailed summary right on the screen.
Day and Night Modes
One feature that makes this display so user-friendly is the automatic Day and Night modes. Whether you’re driving at sunrise or sunset, the screen’s brightness adjusts on its own. You get the clearest, most readable data no matter the time of day.
Adaptive Cruise Control
Adaptive Cruise Control gives real-time alerts about your distance and speed. This feature helps you maintain a safe driving distance and sets your speed as needed. This reduces stress and allows you to stay alert, especially when driving for hours on end or through high-traffic areas.
Diagnostics
Beyond convenience, the display serves as a powerful diagnostic tool for your truck. It keeps you in the loop about your truck’s performance by providing detailed insights into engine health, fuel economy, and fault codes. That means you can catch small issues before they turn into costly repairs or performance issues.
Safety Integration
Safety should always be a driver’s top priority. Kenworth’s advanced safety integration helps protect you on every journey. Built-in features like Lane Departure Warning and Collision Mitigation help prevent accidents by providing real-time alerts and automatic assistance when needed. Whether navigating tight city streets, maneuvering through heavy traffic, or cruising down open highways, these smart systems work to keep your drive controlled.
Enhanced Digital Driver Display
Kenworth’s digital display blends together technology and safety to enhance your driving experience. With its intuitive interface, real-time updates, and powerful diagnostic tools, it’s more than just a screen: it’s a trusted assistant that keeps every driver in control.
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Apr 7
25
Spring Truck Maintenance: Prepare for Warmer Weather
As the seasons change, it’s the perfect time to give your truck a thorough inspection. Whether recovering from a bitter-cold winter or preparing for a brutally hot summer, being proactive with preventative maintenance keeps your truck road ready and helps you avoid unnecessary component breakdowns.
Spring is the perfect time to address wear and tear from winter conditions and prepare for warmer weather. Our guide focuses on some key maintenance areas to keep your semi and dump trucks running their best out of winter and into spring.
1. Replace Your Air Filter
Spring air brings pollen, dust, and other debris that can clog your air filter. Replace your air filter with an OEM-approved filter to ensure better airflow. Double-check that the housing is tightly secured and clean. A loose, pinched, or improperly fitted air filter can allow dirt and contaminants to enter the engine, which can lead to performance issues, or worse, engine failure. A simple filter replacement can save you hundreds of dollars in maintenance.
2. Service Your Air Dryer and Air Tanks
Your truck’s air system is important for braking and other essential functions. If you have a Paccar or Eaton automated transmission, we recommend replacing your Air Dryer Cartridge with a Bendix oil-coalescing cartridge. These cartridges remove moisture and oil contaminants that can deteriorate system performance over time. Even with an automatic Allison transmission, using a high-quality oil coalescing cartridge can extend the life of your transmission.
Additionally, make it a habit to manually drain your air tanks on a regular basis. The demands on the air systems are much higher than they used to be. If you drive a line-haul truck, we recommend changing your air dryer cartridge at least every six months. For tri-axle trucks and more severe duty applications, replacements should be done at least three times a year.
3. Exhaust System Inspection
Winter conditions can take a toll on your exhaust system, especially extreme temperatures and harsh road conditions. Now that spring is here, it is the perfect time for a detailed inspection. It can be easy to miss a small problem that can become a larger bill later.
Here are some important questions to consider when completing your pre-trip inspection: Is there a leak at the exhaust manifold? How old is your coolant filter? When was the last time you had your coolant system tested for leaks? Any new oil leaks? How are your batteries? Are the connections full of corrosion? Any lights out that you haven’t noticed? How bad are your brakes?
4. Get a DOT Inspection at Coopersburg & Liberty Kenworth
A Federal DOT inspection is a great way to get your truck road-ready. At a trusted local dealer, like Coopersburg & Liberty Kenworth, our service experts cover all of the safety-related components like brakes, lights, suspension, exhaust system, tires and wheels, plus more. Our team can recommend maintenance services based on your duty cycle, helping you stay compliant and avoid any unexpected breakdowns. Explore the details of a full DOT inspection with this comprehensive list.
Spring Maintenance Pays Off
Remember: Proactive maintenance is the best way to avoid downtime. Paying up front for preventative maintenance is far less expensive than major repairs. After all, filters are cheaper than engines.
Now is the time to tackle your truck’s Spring maintenance list! Take care of your truck with parts and service at Coopersburg & Liberty Kenworth.