The notion is certainly a thought-provoking one, and it’s likely that numerous business operators are either pondering or should be contemplating this transition. The prospect of upgrading from a utility vehicle (ute), which has traditionally served as their primary workhorse, to a light-duty truck presents an intriguing avenue. This shift will entail a multitude of aspects that demand careful consideration, particularly the potential disparities between vehicles and the distinctive considerations involved in acquiring truck finance
The cost factor of any possible finance variations could be a significant consideration as both individuals and businesses battle current inflationary pressures and are looking for as many cost-savings and efficiencies as they can realise. Offering better interest rates and cheaper truck finance, Jade Truck Loans can assist operators seeking to step-up from a ute to a light-duty truck as their workhorse.
Who might consider this move? Operators in a wide range of industries, occupations and sectors including:- landscapers; service and maintenance; building and construction; installers of goods such as air-conditioning units which need to be delivered for installation; some sectors of general delivery; trades that are increasingly required to carry more supplies and gear; as just a few ideas.
We canvass some of the potential benefits of making move, offer info on the latest best-selling light-duty trucks and cover the finance side of the move.
Potential Operational Benefits
Saving on operating costs could be a big decision maker or breaker. Moving from a ute to a light truck can allow for larger payloads. For some operators, this can mean making less trips to deliver or carry the same amount of supplies or gear. For those that need to take a heap of gear to site, it may mean only needing one instead of two vehicles.
In cutting down the number of trips, operators may realise significant fuel efficiencies and fuel cost savings.
Utes are often favoured by operators with younger team members as they can be driven with a standard driver licence. But many of the current light-duty trucks on the market can also be operated with a standard licence. Even, in some cases, by P-platers. Allowing apprentices and trainees to operate the work vehicle. Another important issue with the current tight labour market.
The added capacity and increased power available with a light truck may also open new business opportunities. Offer the chance to expand the business into new markets or offer new services.
On the even-stevens count, both utes and light-duty trucks have dual-cab models available. So the same number of team members could be transported in the one vehicle. But the cab of a truck is likely to be larger than a ute, providing greater passenger comfort.
Talking of comfort, truck manufacturers pay great attention to cab features in regard to driver comfort and efficiency. They appreciate that this can be the office for many drivers with many hours spent there each day. Safety is also especially high on the latest truck models with new tech and upgrades being introduced. Features which enhance driveability.
In the ute corner, these vehicles very often do double-duty for individuals and families. Many of these brands are equally suited as weekly workhorses and weekend warriors. Unpack the tools and equipment on a Friday and load up the bikes, boats and toys on a Saturday. Not really something that a light-duty truck would usually be suited to, but it’s possible.
Recent Top Selling Light-Duty Trucks
For ute owners looking to make the move, which light-duty trucks should you be considering? The three leaders in the market are Isuzu, Hino, and Fuso. The sector has shown good growth based on the August truck sales figures, with an over 17% rise on August 2021 and YTD figures are also up 11%.
Isuzu in particular is one to look at after setting record sales figures recently. Isuzu sales for August posted an uptick of nearly 25% while Hino was up just over 1% and Fuso 5%. Check out the ready to work and built-ready models as value options.
Vehicle Finance Products
The same selection of business truck finance products are available for the purchase of both utes and trucks. These include Chattel Mortgage, Leasing, Commercial Hire Purchase and for trucks, Rent to Own. The choice of loan type will depend on individual issues of the business financial objectives, accounting method and other accounting-related factors.
When considering the cost of finance with regards to interest rates, it's crucial to recognize that the rates should remain consistent for both types of vehicles. Whether it's utes or light-duty trucks, similar interest rates apply. Delving deeper into the specifics, Truck Loan Rates – See How Different Loan Products Compare, including Chattel Mortgage Finance, demonstrate this consistency. Our adept consultants work diligently to individually source and negotiate interest rates from our extensive lender panel, ensuring a tailored and competitive financing solution for each client.
Interest rates offered are based more on aspects of the loan application and the business financial position rather than the type of vehicle being purchased. Some conditions may apply in regard to total loan amount and other issues as would apply for all finance applications.
So with the finance for both utes and light-duty trucks comparable in terms of loan products and interest rates, the decision to step-up or not may hinge on the cost-savings possible through improved productivity and efficiencies.
If you are currently considering the move and would like comparison finance quotes on both types of vehicles, contact us to discuss the options.
Contact Jade Truck Loans on 1300 000 003 for cheaper truck finance on light-duty tucks.
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.