Costing through the transportation industry requires a fleet of high-quality trucks. This is also the same if you are a manufacturing business hoping to transport or move raw material from one place to another. Typically, this comes with some considerable financial obligations. And it can help make it daunting as you surf for a new or used truck.
Well, all this can go away through truck financing. With this option, you contract a lender to finance the full purchase of your truck or fleet needs. Afterwards, you agree to make monthly payments in consideration for the financial services. Usually, you spread this overall payment across several years to afford yourself financial stability.
Then, upon the payment of the loan obligation, you receive ownership free of any adverse right or interest in the truck or fleet.
What Can You Finance
With the truck finance, you can finance loads of truck needs. They include
Available Financing Options
If you’re looking to obtain truck financing, there are various options that you can take advantage of. Typically, they include
With this finance option, the lender provides you with the funds you require to make the truck purchase. Then you make the purchase using the funds in your name with ownership of the truck accruing to you.
Then, the lender takes an interest in the chattel you purchase as security for the loan. Then, you commit to payment of the purchase sun over a specific duration in a specified manner. Upon discharge, the lender’s interest over the truck then ends.
With this finance option, the lender provides the truck to you on hire and allows you to enjoy possession for a specific period. Attached to this arrangement is an opportunity to purchase the truck at the expiration of the hire purchase agreement. In such a situation, you receive possession at first. Then upon the full repayment of the cost price and interest, you receive ownership of the truck.
With this finance option, the lender provides the truck to you and allows you to enjoy possession and use for as long as you need. However, in this situation, ownership of the truck remains with the lender, unlike in a chattel mortgage. You then commit to repayment over a period. Then at the end of the lease arrangement, you have an option to purchase by paying a lump sum.
With this finance option, the financier makes a purchase of the truck on your behalf. Then afterwards, rents the truck to you for a specified period. In this case, you do not get ownership, and all you get is exclusive possession throughout the loan. After the period lapse, you can then either renew the rental or purchase at market value.
Why Truck Financing
There are various benefits that you derive when you decide to finance your truck purchase. These benefits include
- Flexible Repayment Structure
- Financial Stability
- Potential Tax Benefit
Truck Finance Calculator
A truck finance calculator is a tool that allows you to get an estimate of your loan repayment obligation based on a set of information. Typically, this information includes the amount you intend to loan, how long you want the loan agreement to last for, and the interest rates available.
Frequently Asked Questions Concerning Equipment Finance
Here are the answers to some questions that you might have as you navigate through truck financing.
You can finance a used truck. Truck financing is not restricted to only new trucks. However, when financing used trucks, some conditions might apply. Best to contact your broker or consultant for more details.
Yes, they are different. Although they are both financing options for your truck purchase, they operate in different ways. Typically, you get ownership from the beginning when it comes to a chattel mortgage. On the other hand, you only get possession in a hire purchase agreement with an option for purchase later.
Yes, various lenders offer to finance a fleet of trucks. However, certain conditions are relevant. It would best to contact your consultant for more details.
Yes, the fact that you don’t have an initial deposit does not stop you from getting financing. For instance, you can take advantage of the hire purchase or chattel mortgage option for this.
Yes, you can decide to purchase the equipment that is the subject of your lease agreement. Usually, you will have an option to purchase at the end of the lease agreement that you can exercise with the payment of a lump sum. Contact your broker for more details.