How and why having more truck loan lender choices can pay off

Indeed, the fundamental principles of economics suggest that an increase in supply can lead to lower prices. This concept is well understood by truck operators familiar with tendering for contracts and quoting jobs, as a competitive market can drive prices down. Similarly, this principle can apply to the truck loan market. A larger pool of truck loan lenders in the market offers more opportunities for those seeking finance to secure better loan deals.

A truck purchase is a significant investment, and the same level of diligence applied to surveying the truck market should also be extended to sourcing truck finance. Buyers often dedicate ample time to researching truck brands, models, and negotiating with dealers to secure the best deals.

When it comes to obtaining truck finance, a similar thorough search and assessment should be conducted regarding available loan types and the lending market. Identifying the loan options available and selecting those that align with your specific needs and will yield the best results over the truck's lifespan and loan duration is crucial. Of course, the primary objective for most is to secure the most affordable truck loan possible.

A critical factor in achieving these goals is being informed about the lenders in the market, understanding the distinctions between them, having access to their offerings, and possessing the negotiation skills to obtain the ideal and most cost-effective truck loan.

Restricting loan inquiries to just a few lenders may result in limited offers for comparison. The greater the number of options available, the higher the likelihood of finding the cheapest and most suitable loan solution.

Every business has unique requirements, nuances, and variations regarding their truck loan needs. The ability to negotiate details, including terms, conditions, and securing a lower interest rate, can have a profound impact on the loan's outcome, as well as the long-term profitability and productivity of the business.

As a broker-style lender, Jade Truck Loans provides customers with vast truck loan products for good reasons. We explain how and why having more truck loan lender choices can pay off with a cheaper, better loan compared with only relying on the one source of finance.

Truck Loan Lender Variations

The truck loan lender market includes banks, finance companies, manufacturer finance, non-bank specialist lenders and truck loan finance brokers, such as Jade. Unlike consumer finance which is regulated through ASIC, business finance is not so heavily regulated and that provides select lenders with the flexibility to be more negotiable on loan conditions.

The major banks hold the distinction of being the largest lenders in the country in terms of overall volume. However, their status as traditional banks can sometimes limit their flexibility. Many major banks operate within strict guidelines that may exclude certain operators from meeting their loan eligibility criteria. These guidelines could pertain to requirements such as possessing extensive financial records, maintaining a favourable credit profile, or having a minimum trading or operating history.

Finance companies encompass a diverse array of non-bank lenders. While they may offer flexibility, those catering to a wide range of markets might not specialize in the heavy vehicle sector, potentially resulting in higher interest rates.

Specialized non-bank lenders that focus specifically on the trucking and heavy transport sector are renowned for their willingness to engage in negotiations. They often compete aggressively on interest rates, leveraging their in-depth understanding of the market. Furthermore, they tend to be more adaptable when it comes to loan conditions. However, it's important to note that many of these specialized lenders operate primarily through select industry channels – typically via brokers like Jade – rather than dealing directly with customers.

The loan types offered by the lending market is essentially the same. The four finance products available are Chattel Mortgage for truck & trailer financing which some lenders call Heavy Vehicle or Equipment Loan, Truck Lease, Commercial Hire Purchase and Rent-to-Own truck finance aka Truck Rental.

The interest rates offered will vary across the lender market depending on a number of factors. Lenders set their own rates using the RBA cash rate as somewhat of a starting point, factor in their own costs and margins and allow for their risk assessment or exposure to a particular industry or lending market.

Indeed, interest rates and loan offers can exhibit variations depending on whether the financing is sought for new trucks or used vehicles. The rates and conditions advertised by lenders typically pertain to new assets and applicants boasting a favorable credit history.

Given the diverse phases of business operations, the array of truck types available for purchase, and the unique circumstances of each borrower, different lenders may emerge as the preferred choice for distinct operators at different junctures.

A wider array of lender options allows businesses to align themselves with the lender that best aligns with their precise requisites at any given moment. This flexibility facilitates tailoring the loan solution to the specific needs and goals of the individual business.

How Interest Rate Variations Can Add Up

The variations in interest rates can be where the greatest payoff can be achieved through having more lender choices. To see exactly what the difference in truck loan repayments may be for different interest rate loans, use our Truck Loan Calculator. Even a small percentage point difference more can add up to extra costs over the 7 year term of the loan. And a small percentage point less can represent a significant pay off!

Specialist Loans – Low Docs, Bad Credit

For operators seeking low documentation, no documentation, or truck loans despite having a less-than-perfect credit history, the significance of having a broad range of lender options becomes even more pronounced. Many mainstream banks and certain finance companies do not offer loans tailored to these specific circumstances. In such cases, leveraging the expertise of a truck loan broker to connect with specialist non-bank lenders can present a viable avenue to secure a suitable loan solution for businesses in these scenarios. This approach widens the scope for businesses to find a financing arrangement that caters to their unique needs and financial situation.

Facilitating Access to More Options

Jade Truck Loans maintains accreditations with a diverse array of banks, finance companies, and specialized non-bank lenders. Our approach enables us to offer our clients access to a broad and varied lender market. We take charge of the sourcing and negotiation stages to ensure that our clients secure the most cost-effective and well-suited truck loans available.

These negotiations encompass more than just interest rates. They extend to critical loan terms that can hold particular significance for businesses. Such negotiations may involve determining an appropriate loan duration, specifying a desired balloon payment, arranging additional security measures, and addressing other pertinent factors.

By seeking access to a wider selection of truck loan lenders and leveraging the advantages they offer, businesses can realize substantial cost savings within their truck acquisition and financing procedures.

Contact Jade Truck Loans on 1300 000 003 for access to more truck loan lender choices.