The current buzz and buzzword in the fuel, energy and climate change conversation is without doubt ‘hydrogen’. The release of the Federal Government’s ‘net zero by 2050’ Climate Change Plan has technologies including hydrogen as a major component. At COP 26 in Glasgow, a leading Australian businessman was pushing hydrogen as an energy source and is talking of building hubs in various locations.
Hydrogen has been in the energy sector for some time and several leading truck manufacturers are already active in the space. In 2020 Hyundai laid claim to delivering the first hydrogen powered truck and in a recent media statement, the company has strengthened their focus in that area. Announcing a Hydrogen Vision 2040 in which hydrogen fuel cells would ‘do much of the heavy lifting in the transport sector’.
As per a recent announcement on the Coregas company website, they are slated to receive the inaugural hydrogen-powered trucks in Australia by 2022. Concurrently, multiple entities have engineered and market hydrogen-cell conversions tailored for trucks and buses in the Australian context.
For business operators mulling over a forthcoming truck acquisition, these developments naturally prompt queries about their potential implications. Should the prospect of transitioning to hydrogen or procuring a hydrogen-powered truck resonate, an essential inquiry emerges: How might this choice impact the loan arrangement?
While we may not possess specialized expertise in the domain of energy technology, our proficiency resides in the realm of truck loans. At Jade Truck Loans, we extend pertinent information concerning financing solutions for hydrogen-powered trucks, elucidating the array of vehicle finance alternatives available to navigate this innovative and evolving landscape.
Truck Loans for All Power Plants
The move to electric powered trucks is already happening with several leading manufacturers
The move to hydrogen should be yet another technology shift which is embraced and adopted over time by both the trucking and transport industry and the truck lending market.
Jade Truck Loans provides our complete truck finance products for all types of trucks – diesel, petrol, electric and hydrogen, including all makes and models, sizes and applications.
- Light duty
- Medium duty
- Heavy duty
- Truck and trailer loans
- B Doubles
- Semis, prime movers
- Hyundai, IVECO, Isuzu, Scania, Kenworth, Volvo, Mack, Mercedes-Benz, Fuso and many, many more leading manufacturers.
Truck Loan Types
When deliberating on truck finance, business owners are presented with a range of loan options. The determination of the loan type is not constrained by the specific type of truck under consideration. Instead, the choice of loan hinges on the intricacies of the business structure and the underlying financial goals.
The loan types available are:-
- Chattel Mortgage for truck & trailer finance
- Truck Leasing
- Commercial Hire Purchase
- Rent to Own Truck Finance
Discussions with accountant or financial advisor are recommended as the key defining features and benefits of loan products relate to tax and accounting measures.
These factors include:-
- Accounting method: Chattel Mortgage is best-suited to businesses that implement the cash method of accounting while Leasing and Rent to Own to those that implement the accruals method.
- Treatment of GST: The full amount of GST applied to the purchase price can be claimed on the next BAS return with Chattel Mortgage. With Leasing and Rent to Own, GST is applied to the repayments and claimed on the relevant BAS. This applies to businesses registered for GST.
- Balance Sheet strategy: With Chattel Mortgage the borrower takes ownership at time of finance settlement and the truck is posted to that business’ balance sheet. With Leasing and Rent to Own the ownership of the truck remains with the lender until the loan is finalised. These forms of finance are referred to as off-balance sheet options and known to ‘improve the appearance’ of the company balance sheet.
- Tax deductions: The interest component of all loan types is tax deductible. With Leasing and Rent to Own the repayments are treated as an operating expense and tax deductible. With Chattel Mortgage only the interest charged on the monthly repayment is tax deductible. The major tax deduction is realised through depreciation of the truck when the annual accounts are prepared.
Truck Loan Interest Rates
Truck finance & leasing interest rates vary across the range of loans available. This is in regard to Jade loans and across the business lending market. Loan application approval and offers made are assessed and derived based primarily on the credit profile and other aspects of the business applicant.
Securing Finance for New Truck Purchase
With trucks a long term acquisition, investing in new technologies now could be worth considering. There is a wealth of resources available to swat up on hydrogen as an energy source and no doubt there will be much more coming out in the future. Information can be found at a Government resource. Truck buyers may like to discuss the energy options with their manufacturer/dealer to find out what is currently available and what is due for launch.
Irrespective of whether the acquisition involves an electric vehicle (EV), a hydrogen-powered truck, or a conventionally fueled option, Jade Truck Loans is positioned to facilitate cost-effective interest rate financing solutions. As time unfolds, potential incentives could materialize from both governmental bodies and lenders, aimed at fostering the adoption of innovative technologies. We are committed to closely monitoring policy declarations and will dutifully disseminate pertinent updates via our blog articles.
Contact Jade Truck Loans on 1300 000 003 for a quote on a truck loan for all types of vehicles.
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.
