Unlike personal vehicle commercial vehicles are more important to its owner. The reason is, the vehicle is not just a medium of transport for them, it is their medium of income. In their balance sheet, it should not be considered as an expense but as an investment. But in this current economy these commercial automobile has shifted its side, it has become an expense since the return through them is not as it was initially. Now they are liable to pay the lender the same way they paid earlier. This will affect their balance sheet seriously. They are not just liable for the lender but also to the stake holders.

Since the commercial vehicles are operating more frequently than a personal automobile its depreciation too is relatively higher. This means these vehicles become old soon. Older the vehicle tougher it is to resell. Tougher is the resale, lesser is the chance for the lender to repossess which implies that a lender will have a little interest in letting the vehicle owner to run it for a long period. Instead the lender may try different (Harsh!) method to get the money he is supposed to get. Combining all these points together, it is important for the automobile owner to take care of both, his stake holder & his lender.

Since most of the commercial vehicle owners go for a comfortable sedans or limousines or RVs, they have to pay a ransom. And since this comes at a huge cost, their monthly installment would be high. Interest rate too would be high for a reason that it is commercial as well as luxury too. So it is very important for the owner to consider auto loan modification.

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