We help everyday Australians find, compare and secure truck loans in record time.
Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.
Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Truck financing can assist your business if it needs a purchase for a heavy vehicle like trucks. Instead of paying the full amount of truck in advance, truck financing makes it possible to own a truck with flexible repayments available. Even so, the way truck loans work may differ based on the loan option you go for.
As a borrower, you should view the interest rate as of great relevance in choosing the best deal. This determines how much you will need to repay the loan together with its total amount over the loan term.
See if the repayment amount and the schedule of payment can truly be achieved and be modified to suit your capacity to pay.
Short term loan makes you pay a higher amount but lets you finish the repayment of the loan faster. On the other hand, a long term loan lets you pay a lower amount but much longer than the other option. Thus, it increases the total cost of the loan.
Know if you will have to pay fees in advance or ongoing charges monthly. Be aware of the add ups including the penalties if you pay the loan after the due date.
Normally, borrowers who have been in business for many years are fortunate enough to be given great deals. If you have assets to offer as collateral and you can provide financial statements, then you may have the opportunity to get lower interest rates.
There are businesses that rely on truck transportation. As such heavy vehicles aren’t cheap, many business owners seek financing to acquire the fleet they need to ship their products or to help other businesses trade their products.
Every business is unique. Before even starting to seek for truck financing, try to find answers to the following questions:
The answers to all these questions should provide you with a rough idea about the budget you must take into consideration for buying your truck. You should gain a fairly good understanding of the best way to maximise your investment.
After carefully assessing your needs and your means, you may find out that leasing is a better option than purchasing.
If you decide ownership is better, you’ll find out that there are two basic types of products that work for purchasing a truck. A chattel mortgage, for instance, is a business loan you can take by agreeing to place a mortgage on your truck. Once you pay it off, the mortgage will be lifted. This truck accounts for as an asset.
This allows you to claim GST, fuel and loan payments even credit in tax. A hire purchase is similar to a chattel mortgage. The main difference is that you don’t own the vehicle until you pay it off. Throughout all this time, the lender or the bank owns this truck.
Your newly acquired vehicle is considered an operating expense. This type of product allows you to amortise various expenses such as maintenance, and insurance. Either you or your lender will be able to claim GST, fuel costs, and interest payments. Furthermore, you should carefully assess whether you may require a financing product that allows for extra repayments.
If you could use extra flexibility, you might want to choose a finance lease or operating lease as the best truck financing option. Even though this solution doesn’t allow you to gain equity in the truck, it enables you to trade-in this vehicle by the end of the lease for a new truck. There’s also the option to walk away instead of purchasing the truck. Either way, you’ll gain most of the business tax benefits.
Whatever your preferences, banks and lenders can help you develop a custom payment plan to suit your cash flow such as a hire purchase that is almost the same as chattel mortgage.
Banks and lenders prefer customers with the lowest level of risk possible. You can alleviate their fears by paying down debts and showing that you do have capital for a vehicle purchase or lease. This decision should allow you to benefit from lower loans or lease repayments. It could also grant you access to lower interest rates.
Such savings could also prove to be useful for paying for truck insurance and for other things you may need without having to find other financing sources.
All major banks and lenders can provide a full array of truck loan solutions to suit the needs of any type of business.
As tempting as buying a used truck would be, keep in mind that you may end up paying more by the end of the day. Trucks have their definite useful life. As soon as their engine comes to the end of its lifecycle, it will call for a complete overhaul. Even though you’d have to pay more for a new truck, this option could save your business money in the long-term, as all maintenance and repair costs would be much lower.
Furthermore, new vehicles are more reliable, which is good for your business and for your drivers.
If you need a commercial truck but you don’t have money to purchase it, you can choose a solution of semi-truck financing with no down payment. This option enables you to get the truck you need without any upfront payment. This is an excellent method to obtain the right vehicle for your business and settle your debt in installments you can afford.
However, obtaining this type of financing isn’t easy. Most financing institutions ask for a down payment before allowing their clients to take their vehicles. If this down payment is more than your business can handle, you should choose a no down payment deal instead.
Are you seeking to add a new truck to your fleet or to enter the owner-operator business? If you do, you should try to understand how the financing process works. This should increase your chances to get the truck financing you need. It should also allow you to understand the potential reasons why lenders might deny your loan
It’s a saying you’ve probably heard so many times by now that it’s almost lost all meaning.
But when it comes to finance, the interest rate the lender applies varies based on the risk of the application.
The higher risk the application, the more likely you are to default, or the less likely the lender will be able to recover their loss if they have to repossess the car, the more the lender has to charge to offset their risk.
To lower your interest rate you need to lower your risk. There are many factors that lenders look at when calculating the risk of your application.
How long have you been in your job? Are you full time employed? Part time? or casual?
Residential history is important as well. Whether you’re renting, boarding, have a mortgage, or own your property outright, are all taken into account by the lender to calculate your risk.
Some factors you won’t have much control over, there are some things though that you can control.
Type of car – Lenders see new cars as lower risk compared with used cars. This is due to the fact that a brand new car will hold more value, therefore the lender will have a greater chance of recovering their loss if they have to repossess the car. Also new cars generally have lower running costs, so the fact you will less likely receive unnexpected maintenance bills during the life of the loan means it is more likely you will be able to keep up with the repayments on your loan.
LVR (Loan to Value Ratio) – The loan to value ratio is calculated based upon the amount of money you are borrowing vs. what the lenders believe the car is worth. LVR is calculated as a percentage e.g. if LVR is 110%, that means you are borrowing 110% of what the lenders believe the car is worth. The lower the LVR, the lower risk the application is for the lender, as they will have a much greater chance of recovering their loss if they repossess the car. Factory accessories are usually taken into account when calculating LVR, however aftermarket accessories are not. If you have your heart set on a car that has been heavily customised by the previous owner, be prepared you may have to pay a higher rate as the LVR will probably be higher.
Deposit – By providing a deposit towards the car you can significantly lower the risk of the application. By doing this, you’re not only reducing LVR, but you’re also showing some commitment from your end. If you commit some of your own hard earned savings to the car, rather than just spending all of the banks money, you’re demonstrating your devotion to paying for the car.
Finding the ideal semi-truck for your business can be difficult especially when you need financing to make this purchase. Nevertheless, you should get a truck that meets the specific needs of your business. Compromising on the age, mileage or technical specifications of your vehicle to save some money isn’t the best way to proceed. Keep in mind that some lenders may want to set requirements in regard to the age and the mileage of your truck, so your options will be limited.
Getting semi-truck financing no down payment will help your small transport business thrive. Hopefully, the above tips will help you get your financing application approved.
These top five tips to buy a semi-truck by getting a loan with no down payment should bring you closer to achieving this goal.
Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.
Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus.
