Finance

Truck Finance and Available Options

Owning a truck in this current time might be quite difficult. The problem is not often about managing them or any other thing, but about financing the trucks. For so many people, this has been a barrier to achieving their dream of being a truck owner.

If you are one of these people, or you know someone who’s finding it difficult to own a truck due to unavailable finance, then you have come to the right place. Not having money to finance your truck purchase does not have to be the end of your dream. There are many options you can take advantage of to be a truck owner. One of those options is by using other people’s money, and that is through truck finance.

We offer the following services under our parts offering:

What Is Truck Finance?

Truck finance is one of the best ways you can own a truck without having your own money. You use other people’s money to purchase your truck and make a commitment to pay back. This allows you to use the truck while you plan to pay back the finance with some little interest.

This way, you have the truck as your own, and you can put it to whatever uses you desire. It can even work for you to help you raise money to pay back your truck finance agreement.

One good thing about truck finance is that you do not have to worry about your properties as security. The only security required is in the product you are willing to take up finance for. In this instance, the truck will be the security for the finance, where necessary.

So, even if you do not have any properties, the chances are that you can still take up truck finance for your business.

Benefits of Truck Finance

If there is anything that comes without a benefit, truck finance is not one of them. For those willing to own a truck through truck loans, many benefits are waiting for you. Below, we consider some of the many benefits of truck finance.

You Can Preserve Your Working Capital

No one desires to buy a truck for luxury. The reason you need a truck is almost certainly due to your business. If this is true, you will understand that you need a lot of money and equipment to boost your business. Due to the financial shortage, you need to save as much as you can for your business.

One way to do this perfectly is to take the option of truck finance. This would allow you to save enough money and use it for other business-related issues. So, you don’t have to use your working capital on trucks and leave yourself hanging on other business-related matters. You can use truck finance and preserve your working capital.

Your Finance Loan Terms Will Match the Viable Life of the Truck

Another benefit of truck finance is that it provides you with the opportunity for your truck loan terms to match the truck’s viable life. This means that you get to repay your loan throughout the truck’s viability.

Many truck finance agreements would allow you this opportunity in terms of the agreement. This way, you have a lot to gain by paying when using the truck.

You Have Enough Time to Repay

One other benefit is that the truck finance agreement always provides you with enough time to repay the truck finance loan. The better part of it is that you continue to use the truck for your business without delay.

Financing Options for Trucks

There are different options for your truck finance. We have discussed these options below.

Hire Purchase

Hire purchase truck finance is specifically for businesses that desire to own the truck at the end of the payment agreement. The way it works is to get the truck in your possession and put it to business use. Meanwhile, you pay a certain amount to the truck finance firm. This payment is throughout an agreed time, and the amount payable is subject to the parties’ agreement.

After you have completed the payment for the truck finance loan, the finance firm transfers the truck’s title interest to you. You, however, need to make some initial down payments. However, some of the truck finance firms do not require any deposit.

With the hire purchase truck financing option, you will own the truck after completing the payment. You can even get some tax benefits, but you should seek expert advice for this. Another thing is that the contract is flexible, and you can agree to vary the terms of the hire purchase agreement.

Asset Loan

Asset loan, also known as a chattel mortgage, is a kind of truck finance option for individuals, partnerships, sole traders, and companies. This option is always the best where it is important to own the truck at the beginning of the contract. The truck finance company transfers the truck’s ownership to you after the completion of the payment agreement.

As a benefit of the asset loan truck finance option, you get a reduced payment option every month by varying the deposit. You also get options for the final balloon payment. One last thing is that you can use asset loans for both used and new trucks.

Operating Lease

As the name suggests, this is like a lease on a truck. Unlike the previous two options, you do not get ownership of the truck after some time. You only have the use of it over an agreed time. And when the lease expires, you need to return the truck.

The operating lease option is for you if you upgrade your commercial truck frequently. Some of the benefits of this financing option include getting a competitive rental price. You also get a flexible payment term spanning up to sixty months.