Truck Finance Options

Truck Finance Options

If you have a business that operates forklifts, then you are highly likely to also operate a truck or even a fleet of delivery vehicles. Whether you’re considering purchasing a lift truck, a general delivery truck or a heavy duty prime mover, the same commercial finance products are available to finance your asset purchase.

Types of Truck Finance

The main types of truck finance are:

  • Chattel Mortgage for Trucks
  • Commercial Hire Purchase (CHP) for Trucks
  • Truck Leasing
  • Truck Rent to Own

Each has its own combination of features and benefits which suit different types of business structures and objectives but are all available for the purchase of both new and used trucks.

Key Finance Differences

Making the decision as to which commercial finance product is the best for you and your truck can be a complex process. In all cases you are well-advised to consult with your accountant or financial advisor.

The differences include:

  • Accounting methods: some are suited to cash accounting methods, some to accruals accounting method.
  • GST: not all elements of every loan type are subject to GST.
  • Tax deductibility: not every element of every loan type is tax deductible.
  • Balance sheet: leasing and rental are off-balance sheet options, Chattel Mortgage and CHP are on balance sheet finance.

Key Finance Similarities

Depending on how you, or preferably your finance broker, negotiates your finance package with the lender, all commercial finance tends to include:

  • Fixed interest rate
  • Fixed monthly payments
  • Fixed loan term
  • Balloon, residual or buyback optional

Securing a Truck Finance Deal

Commercial finance products are available through a number of providers – banks, finance companies and truck finance brokers. To make an informed decision and be assured that you have secured the cheapest truck loan available, you would need to canvass quotes from quite a number of different lenders. Approaching that task yourself can be time-consuming and at times, infuriating.

  • Many banks and lenders have stringent loan guidelines that are for the most part, non-negotiable. So if you want to tailor your truck loan to your specific requirements or you have credit issues or not insufficient documentation to meet their guidelines, you may find the task challenging.
  • An alternative and in most cases the better solution is to use the services of a professional truck finance broker. Brokers are available to even the smallest operators so don’t hold back thinking only the big boys can use finance brokers.
  • You don’t need a referral to contact a finance broker but ensure the company you select is independent of any financial institution but accredited with a large number of banks and lenders and has specific experience and expertise in truck finance.
  • Your finance broker can approach a range of lenders on your behalf to ensure they present you with the cheapest truck deal available to meet your requirements.

We know extremely experienced people with expertise in this area who will work closely with you to tailor a truck loan to your specifications. If you would like the contact, please get in touch with us.