The ideal time to get the best truck finance may present with interest rate cuts, with improved business conditions, at EOFY tax time and during sales events. The timing for securing the most affordable truck loan, at the lowest rate, is not determined by a specific month or time of year.
In fact, timing may not be the most critical issue in determining your best possible outcome. But there may be advantages in applying for truck loan in sync with rate cycles, tax benefits, an upturn in business activity, and when vehicle discounts are available.
Rate Cuts May be Ideal Time for the Best Truck Finance
The interest rate is key to the cost of a vehicle loan and with the investment required on the top of range models, the interest accrued over the loan term can be significant. Buyers will be wanting the best interest rate at all times, and staying across what’s happening with rates may be helpful.
Lenders can change their rates – up or down, in line with Reserve Bank (RBA) cash rate decisions. Applying before an expected rate increase rather than waiting may be a very advantageous. Waiting until after a cut may also result in a slightly lower rate.
We caution that with a ‘may be’ a good time as not all lenders in the heavy vehicle lending sector may alter their rates with RBA decisions. While banks are quick to change their home loan rates with RBA decisions, the same is not always the case with other lending sectors.
If the RBA cut the cash rate by 0.25%, commercial credit lenders may or may not match that. To get an idea of what a slightly lower rate after a cut may mean for your loan, work up estimates using our Truck Loan Calculator.
Why are run-out sales the ideal time for the best truck finance?
If your focus for the best loan is the lowest monthly payments, then timing the application with sales events can be an astute move. The lower vehicle price means lower loan repayments. Requiring a smaller loan with that lower price may also attract a lower interest rate – a better overall loan.
If there is a sales event coming up for a vehicle you are considering, plan ahead and secure your loan ahead of time. Being ready to buy may give you leverage with the dealer for an even better price.
Is EOFY the ideal time for the best truck finance?
Tax benefits are available with all commercial credit facilities. So many operators may think ‘tax time’ is great time to optimise their purchase and their finance with deductions. When IAWO offers were available and operators could write-off the full price of a new vehicle in that financial year, EOFY was a very popular time for truck sales. Under the usual, current tax rulings, the benefit of buying at the end of a financial year, may depend on individual circumstances.
If you’ve had a particularly good year and would like some deductions to reduce the tax commitment, taking on finance a few months before EOFY may provide the opportunity. Depending on the credit facility used to finance the vehicle. Monthly payments on Truck Leasing and Rent-to-Own are fully deductible. With CHP and Chattel Mortgage, the deduction will come through asset depreciation.
Timing Truck Finance Application with Business Turnover
Timing taking on finance when the business is doing well may deliver benefits. Financials are required for the application with lenders considering current turnover and cash flow when preparing offers. Presenting a good set of financials may result in a better loan offer.
Another good time for a business operator to apply for finance can be after finalising another large loan commitment. Finalising that liability would improve the balance sheet and may contribute to a better off on a new loan.
Will I get a better truck loan before or after I buy?
The same finance offer should be available whether the loan application is submitted before or after the purchase has been arranged. But other benefits may be realised by timing the application with the purchase. Pre-approved finance may be advantageous in being a ready to buy hard-to-find quality used vehicles and being buying at auction.
What is more critical than timing to getting the best vehicle loan?
Timing, especially in line with interest rate cuts and tax benefits, may be considered significant in obtaining the best heavy vehicle finance. But more significant can be applying to the right lender. Using a finance broker can provide that vital link between your business and the lender that is currently offering the best rates and is best matched to your financial and credit profile.
For truck finance at your best possible rates and terms, contact Jade Truck Loans on 1300 000 003.
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.
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