Commercial Vehicle Stip Appendix - Westlake Financial

Commercial Vehicle Appendix

Stip Requirements

Commercial Vehicle Class Breakdown

Contract Requirements:

Title should be always in the name of the individual borrower. The dealer is required to select the check box below in the contract

Restrictions:

  • Commercial Vehicle loan cannot be financed under a company name, must be financed by an individual
  • Class 7 and 8 Commercial Vehicles hours of use must not be higher than 120% of total mileage. This can be calculated the following way: Hours of use * 40 <= miles * 120%
  • GAP and Service Contracts cannot be financed as part of the Commercial Vehicle loan.
  • Commercial Vehicles cannot be operated outside of the United States.

Emission Rules – applied to California only:

Vehicles must follow the below schedule for compliance based on engine year. If their engine is older than the schedule allows, they must replace it or they will not be able to register with the DMV or transfer ownership.

Below is the Engine and Model year restriction by Truck Class as of Jan 1, 2020:

Vehicles weighing more than 26,000 pounds –

  • 2000 and older trucks must comply by 1, 2020 (already passed)
  • 2001-2005 must comply by 1, 2021
  • 2006-2007 must comply by 1, 2022
  • 2008-2010 must comply by 1, 2023

Vehicles weighing 14,000-26,000 pounds –

  • 2004 and older must comply by 1, 2020 (already passed)
  • 2005-2007 must comply by 1, 2021
  • 2008-2010 must comply by 1, 2023

Commercial Vehicle Program Stip examples and explanation:

 

Passed truck inspection/DOT form – (ONLY required for class 7 and 8):

Most important thing to look at  – Has it been signed off on/check off that it qualifies?

Important to note: these reports may vary between dealerships, but they all look at the same general attributes.

Proof of Usage – (ONLY required for class 7 and 8):

Most important thing to look atDoes it have an official company branding/letterhead?

Examples: Haul letter, Reference Letter or Company’s Letter stating what the truck will be used for.

RigDig report – (ONLY required for class 7 and 8):

Most important thing to look atPage 2 of the RigDig report has a “Vital History” section. If each of the three subsections begin with “Great News!”, the truck is clean.

VIN Verification – (ONLY required for class 7 and 8):

Most important thing to look at  – If signed by DMV verifier, it’s good.

Important to note: these form may vary between states

Engine Plate – (ONLY required for class 4-8 in CA):

Most important thing to look at  – Check date in red. If the year is more recent than the year in the Engine and Model Year restriction by Truck class listed above, then it is good!

Picture of Engine Hours – (ONLY required for class 7 and 8):

Most important thing to look at  – Use this formula

Hours of use (on left) * 40 <= Miles (on right) *1.2 – If this is true, it’s good.

Below is an example of where to find the Engine hours: