Understandably, this is the most commonly asked question by truck buyers sorting out a truck loan. What will MY interest rate be? Interest rates are the drivers of truck loans. The rate sets how much you will pay overall, in total for your truck finance. The rate in conjunction with the loan term, determines the monthly loan payments - a key factor in juggling the ongoing expenses and balancing the budget. We don't like to be beaten on interest rates, so clearly we are totally fixated on achieving the cheapest truck loan interest rates for our customers.
You don’t have to be a tech nerd to see what different interest rates are on offer in the market – there are ads and promos on just about every bank, finance company, lender and truck manufacturer website. Though some manufacturers that offer finance may advertise ‘from $xxx per month’ rather than a rate and some lenders usually advertise interest rates with a conditional ‘from’.
Relating all that to your particular loan can be load of enquiries and calculations. To simplify the interest rate scenario and provide you with steps to finding your perfect truck finance in Australia, we’re providing this interest rate overview.
Interest Rates across the Market
Interest rates vary for different types of finance and loans. The interest rate for a home loan is different from a truck loan which is different to say a business car finance. Why? Because the loans are structured differently, the security is different and for other reasons.
The official cash rate is the interest rate that banks can access their funds and is not the interest rate at which businesses and consumers can borrow money. So when you hear news such as the Reserve Bank has slashed interest rates to .xx%, that won’t be the interest rate you’ll get on a truck loan. Sorry!
Various banks and lenders establish differing interest rates for each finance category they provide, influenced by a range of factors. These factors encompass the cost they bear for their funds, their level of involvement in a specific loan segment, broader economic indicators, their eagerness to engage in business, and other relevant considerations.
Lenders exhibit more favourable interest rates to industries they perceive with higher confidence. Consequently, operators in such industries often receive more competitive interest rate offerings on their financing. Jade Truck Loans maintains accreditation with major banks and multiple non-bank lenders. This accreditation equips us with a network of industry connections, enabling us to discern which entities are currently extending the most cost-effective rates for various sectors, including truck finance.
Interest Rates across Loan Types
Interest rates for truck loans exhibit variation among the various available loan types. Chattel Mortgage for heavy vehicle loans and Commercial Hire Purchase (CHP) typically share identical or closely aligned interest rates, whereas Truck Leasing and Rent-to-Own showcase distinct rates. This divergence arises from the inherent structure of each loan type.
By entering the amount of your truck loan, you can see an estimate of repayments for each loan type. When applying for a truck loan, your Jade consultant will be working to achieve that cheap interest rate on your loan. Interest rates may vary based on individual applications. For special categories such as ABN, No Docs truck loan & truck leasing , achieving our cheap advertised interest rate is possible but additional loan conditions and stricter criteria will usually apply.
The type of truck you are buying – make, model – does not impact the interest rate on a truck loan. The age and condition of a used truck may impact some conditions on the loan including the loan amount and term offered.
Selecting Loan by Interest Rate
If a Chattel Mortgage offers a more affordable interest rate compared to Rent-to-Own, one might wonder why not simply opt for the loan type with the lower interest rate? It's a valid question and seems like a logical approach. However, it's not the complete answer. While the interest rate undoubtedly holds significance in a truck loan, there exist other crucial considerations when selecting a financing product. Long-term goals and various other factors could potentially outweigh the allure of a lower interest rate for your business.
We consistently recommend that all our customers consult with their respective accountants or financial advisors. These professionals can provide tailored guidance on identifying the most suitable loan product for your specific business needs and circumstances.
What rate will you be offered?
We've taken a comprehensive journey to reach your desired destination: the interest rate you'll receive on your truck loan. Put simply, Jade Truck Loans excels in securing the most economical interest rates for truck loans.
As mentioned earlier, we openly display the prevailing interest rates we've accomplished across our diverse loan portfolio. These rates are derived from favorable credit applications and various qualifying factors. Many truck buyers can indeed access these rates.
At Jade, we approach each truck loan on an individual basis. We engage in negotiations to secure the most competitive rates and optimal loan terms for our valued customers. To obtain an exact quote tailored to your truck purchase, I encourage you to engage with one of our consultants or submit a quote request online.
To discuss your truck finance requirements, contact Jade Truck Loans on 1300 000 003.
DISCLAIMER:THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE IS FOR GENERAL PURPOSES ONLY, IS SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.