27.4 C
New York
Friday, May 24, 2024

Buy now

Things You Need to Know About Truck Financing 

Trucking is currently one of the biggest businesses in Australia. The rise of online shopping or eCommerce around the world made many investors venture into the trucking business.  

Trucking has become an easy business platform for those who want to start a business in the country, thanks to the new technologies introduced to the market. With that in mind, the demand for logistics and trucking is consistently rising. 

The industry has become the Australian economy’s backbone that serves virtually all the commercial industries that need it. If you want to be in the trucking business, you will need a huge investment to get a brand-new truck that you can use for logistics. 

There are reliable companies that are offering truck finance services, helping you get into the business. With that being said, below are the things that you should know about truck financing. 

Truck financing: explained 

Truck financing services offer funds to businesses that need to buy a heavy vehicle. The financing service will let you enjoy the full benefits of owning a heavy vehicle without shelling out a lot of money at one go. The financing service will let you have the flexibility and freedom to pay for the vehicle on the easiest term available for you. 

Like other commercial vehicle financing types, truck loans work based on the finance options you will choose. 

Types of trucks available for financing 

Truck financing is available to various types of heavy vehicles, such as the following: 

  • Water trucks 
  • Pantech trucks 
  • Crane trucks 
  • Cement trucks 
  • Car carriers 
  • Prime movers 
  • Tilt-tray trucks 
  • Refrigerated trucks 
  • Livestock trucks 
  • Tipper trucks 

Types of truck finance 

Truck financing also comes in various types. You can pick one that is suitable for your business: 

  • Finance lease: With this arrangement, the finance company buys the heavy vehicle, and let you lease it. The finance lease gives you all the benefits of owning a truck and allows you to fully use it for your business, although you don’t own it. You are required to pay monthly repayments, which allows you to manage your budget. Once the lease ends, the company will let you pay the remaining balance to buy the truck. 
  • Chattel mortgage: In this financing type, the truck finance company will lend you the money to buy a truck, then have you pay it regularly until you pay it back. This way, you can quickly own the heavy vehicle and reap the benefits of fixed repayments. However, the finance company will take out a mortgage over the truck as loan security. The mortgage will be removed once you have completed the payment for your loan. 
  • Commercial hire purchase: By choosing this type, you will be hiring a heavy vehicle from the finance company for an agreed period. You don’t own the truck during that time, and you have to make fixed monthly payments. You will own the vehicle once the term has ended and you have paid off the truck’s full price. 
  • Personal loan: This is merely an option if you will buy a truck for both business and personal use. However, this type of financing has higher interest than other financing types, so it is not suitable for most businesses. 

The trucking business is surely booming, and investing in this industry will let you earn a good income. While these pieces of equipment are very expensive, getting some help from a reliable truck financing company will make your purchase a lot easier than acquiring it out of your pocket.