When was the last time you purchased a new truck and needed to secure a truck loan? Given that trucks are designed for durability and longevity, it's likely been quite a while since your last upgrade. Whether it's been 5, 7, 10 years, or even just a few, if you're looking to expand your fleet, it's crucial to carefully compare truck loans and lenders to secure the best possible deal.
To ensure you secure the most affordable and suitable truck finance arrangement, new truck buyers should have a comprehensive understanding of the current lending landscape. Comparing truck loans and lenders necessitates a thorough evaluation of which banks and lenders are offering the most attractive deals and lowest interest rates. Furthermore, discovering how to enhance your chances of obtaining a favorable deal by seeking assistance from the right experts is equally important.
Jade Truck Loans is a team of experts specializing in truck finance, and we've prepared a concise update for buyers outlining key considerations before applying for a truck loan.
Truck Finance Lender Market
The Australian finance market boasts considerable size, with new non-bank lenders consistently entering the scene. For businesses that have not sought financing in a while, the array of currently available options might be unexpected. Various lenders can offer distinct advantages and disadvantages based on the unique needs of each business applicant.
- Banks have always been the to-go for business finance but are now being challenged by many of the new lender options. By their status and structure, banks typically adhere to strict guidelines when approving loan applications and can have criteria that is difficult for businesses to meet. Criteria for businesses may mean having traded for a minimum time period. A condition which can immediately exclude new business operators. Banks often only consider applications for good credit-rated businesses. While banks can be competitive, it can be worth checking out the other options.
- Finance companies or non-bank lenders can specialise or offer finance across both business and consumer fields. If large organisations, they may have similar criteria to banks but may have some leeway to negotiate.
- Specialist non-bank lenders with a particular focus on say heavy vehicle and equipment finance are some of the preferred loan sources for many truck operators. These lenders are known for flexibility when it comes to interest rate and loan conditions. But many engage only via brokers. Jade Truck Loans can provide access to this area of the truck lending market.
- Many heavy vehicle dealers and manufacturers are now offering finance directly to their customers. These offers are often promoted as ‘$xxx per week’. While appearing convenient, buyers are advised to check the fine print and get other quotes to ensure it is the cheapest deal and at a cheap interest rate with no hidden clauses or charges.
- Finance brokers operate similarly to Jade Truck Loans by providing an expert service to provide access to a wide selection of lenders, handle the entire loan deal including those tricky negotiations on interest rates and loan conditions.
Truck Loan Interest Rates
Truck Finance & Leasing Interest rates will vary across the market depending on that lenders exposure to and/or interest in lending to the heavy vehicle sector. The official cash rate as set by the RBA is the base rate from which lenders then establish what rates they will attach to specific loan categories.
The interest rate attached to individual offers for truck loans are arrived at by lenders assessing the risk of the applicant in terms of repaying the debt. The credit profile forms an integral part of the application approval and businesses can do well to address any issues prior to applying for a new loan.
Applicants seeking bad credit truck loans are typically categorized as high risk, and they can anticipate being offered an interest rate higher than the standard rate advertised by lenders.
Loan Types
The truck loan products available to finance truck purchases is general across the market but some lenders use different terms.
- Chattel Mortgage for Heavy Vehicles.
- Leasing can also be known as Operating Lease.
- Rent to Buy, Rent to Own and Rental are generally the same finance product.
- Commercial Hire Purchase can also be known as simply Hire Purchase.
While all truck loans have a tax deductible element that varies across the range. Businesses are strongly encouraged to consult with their accountant on finance type selection. For businesses intending to utilise temporary full expensing and IAWO, Chattel Mortgage is seen as the better option.
Achieving Workable Loans
Conditions attached to and included in individual truck loans must also be considered in the overall attractiveness and workability of the loan offered. The term of the loan approved as in the number of years to repay the loan is a key determinant of the monthly repayments. Negotiating with lenders on this and other conditions can be a sticking point. A sticking point that a finance broker style lender like Jade Truck Loans may assist you with sorting.
If you’ve never engaged a lender like Jade Truck Loans to handle your finance, you may not be optimising your opportunities.
Cost-effective and workable are the loan attributes that should be aspired to. Achieving those objectives by trying to negotiate with banks and finance companies directly and alone can be extremely challenging and time-consuming.
Working with the experts at Jade Truck Loans cuts down the time involvement and through negotiating expertise many of the obstacles can be overcome.
If it’s time for you to acquire that new truck, then don’t you think it is also time to speak with a Jade Truck Loans consultant?
Contact Jade Truck Loans on 1300 000 003 to discuss low interest rate truck loans.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
