If you’re thinking about a loan approval to finance a truck, one question arises: can you finance an older truck? It feels obvious that an older or a second hand truck would cost a lot less than a new one, hence it would be far easier and budget-friendly to finance it. But is it, really? Let us break it down for you today.
Old Truck Finance
Truck financing for new trucks may differ considerably from that for used trucks. At the very least, on a monthly basis. When repaying a loan for a new truck, you’ll be paying an average of 40% more per month than you would for an older one.
For example, let’s assume that the new version of the same model costs $200,000 and the older one costs $100,000. You’ll be paying ~$3000 per month for the new one, and probably ~$1800 for the old, with a $1200 difference each month.
Let’s take a look at all the important factors contributing to this trivial difference.
1. How Much Is the Finance Amount?
In the previous example, of course the total amounts for both differ by a huge margin, but on the other hand the loan for a higher amount, i.e., amounts higher than $100,000 attract lower interest rates as well. Hence, it’s paramount that you consider all the factors and pros and cons involved for both options.
Asset Finance Shop Tip: To get more ideas on how much you’ll have to repay after financing a truck, you can try some online loan repayment calculators available. Of course, they aren’t 100% accurate, but they’ll definitely give you a ballpark of how much you’ll have to repay.
2. How Long Is the Truck Loan Term?
The maximum loan payback period is five years if the truck is older than 10 years. Some banks will only allow you to work for three years, resulting in excessive repayments, but this is where our expertise comes in.
If a truck is more than 5 years old but less than 8 years old, then you’ll get a loan for the term of 5 years with the option of a balloon. This is of course more comfortable option as you’ll have to pay less monthly amounts as compared to those for older trucks.
Therefore, it’s a good idea to deal with a reliable truck finance broker like us here at the Asset Finance Shop. We’ll guide you every step of the way and let you know what we can do to get you the best deal for your overall business goals.
3. What Are the Approval Criteria?
As we mentioned earlier, it’s hard for a Bank to get a finance approval for a truck that’s over a decade old. Trucks of this age range are considered high risk assets. Even if the Bank does agree on approving the loan, they might ask for a deposit, which doesn’t happen in the case of financing comparatively newer trucks. We at the Asset Finance Shop can avoid these issues and get you the truck or machinery you need at any age!
4. What Are Tax Deductions Like?
The ATO has introduced a very popular instant asset write off up to $150,000
Asset Finance Shop Tip: It’s best to speak with a finance broker like the Asset Finance Shop, who can break down the tax deductions based on the truck you’re financing, the amount of loan you want to take out, and the methods used to make those deductions.
Although used truck finance is less expensive in terms of the total loan amount, for some people, the advantages of financing a new truck may outweigh the advantages of financing an older truck. New vehicles are considered to be safer with a lower risk of mechanical or electrical failure, but older assets may be helpful in terms of freeing up cash flow for your business. Having said that, the majority of our customers are small business owners who prefer to finance older assets. Whether they are just starting out or have been in business for years, they put their trust in us to ensure that they get the best deal possible for their specific needs.
Need advice on financing old trucks or truck financing in general? Contact us on 1300 558 758 or via website live chat. You can also fill in this form and our expert will get back to you.
You’ve chosen to become a truck driver. You’ve probably got a license or are in the process of getting it. But the million-dollar question pops its head: how to finance my truck? Will I get a loan? Or will I get the money for the truck with my not-so-good credit?
Of course you can try and apply for a heavy vehicle loan and get a good deal or sweat over the probable loan amount that would be approved through online truck finance calculators, but in many cases, especially when your credit is bad, you probably won’t get any loans approved. Even if you get any, it wouldn’t be a sweet deal and you will have to bear a huge cost for it.
How to Finance a Truck with Bad Credit
Anyone can apply for truck loans and test their luck, but with our 30+ experience in the field we can confidently say that it becomes a lot harder, if not almost impossible to get a loan approved with desired interest rates, if you have poor credit. That’s where expert truck finance brokers like us at the Asset Finance Shop come into play.
We not only help you every step of the way in getting the best deals possible for you, we also know the nitty-gritty of what the lenders are looking for in your applications, increasing your chances of getting the perfect deal for you as per your situation and needs. First, let’s look at the process we follow for financing a truck:
Steps Towards Financing a Truck
1. You fill in the pre-approval form
You can fill up the pre-approval form for truck finance here which wouldn’t take more than 5 minutes of your time, or get in touch with us via the chat box or the contact us page on the website, and we will get back to you. You can also contact us on 1300 558 758 to discuss the best deal for you.
2. Our experts assess you
Our professional brokers will assess your financial capacity, i.e., your bank statements and other related documents. They will examine your cash flow and other pointers of your business’s finances to ascertain the loan terms, interest rates and all other finance options and decide the best course of action tailored for you.
3. Our truck finance brokers make a case
After examining your information and getting your go-ahead, our experts make your case and submit the needed documents for approval. We negotiate with the lender on your behalf and present your best case in front of them, ensuring you get all that you need from the deal. Sit back and relax as we bear the hassle and do all your work!
4. Your loan is approved!
Once all the formalities are done and checklists are ticked off, the lender approves the loan and you get to finance your very own truck!
Why Go with Asset Finance Shop for Truck Finance?
1. 30 years experience
We have a vast 30 years lending experience, which means we have a strong network of a lot of lenders.
2. Fast approval
We have a vast 30 years lending experience, which means we have a strong network of a lot of lenders.
3. Vast knowledge
We know all the nitty-gritties of truck finances and know exactly what you need. We chalk out a plan that increases your chance of getting a low-interest loan even with a bad credit, something which wouldn’t have been possible if you’d have gone solo.
4. Easy assessibility
You’re always free to visit our offices during the working hours, or we can even come to your doorstep to discuss or complete the paperwork.
Get in touch!
Questions? Don’t hesitate to contact us on 1300 558 758 or via the livechat. We’d be happy to help with all the doubts you have. You can check our Google reviews for the quality of service we provide!
So, you’ve decided you want to become a truck driver. Whether you’re going to be driving for your own business or someone else’s, the steps to getting your heavy vehicle license are the same. It can seem confusing, but when you break it down it’s not as overwhelming.
Here’s our basic guide to getting licensed to drive heavy vehicles. For specifics, please check with your relevant state or territory’s transport and main roads department.
You need to have, at minimum, your car license for two years before you can get a HR (Heavy Rigid) license. A truck falls into another class of vehicle and hence has a higher class of licence. If you need a HC (Heavy Combination) or MC (Multi Combination) license, you need to hold your HR license for a year at minimum to successfully complete.
Find a registered driving school
There are many accredited heavy vehicle training courses around the country, so you don’t need to join the first one you find. Be sure to register with a school you’re comfortable with, as you need to be confident behind the wheel of such a large vehicle. Your school will also provide driving instructors and materials for the theory test you’ll have to take before going on your practical test when you apply for your truck license. Study these, as they are very important for both tests.
Apply for your new truck license
Once you’re signed off from your driving school, you need to visit one of the roads and transport departments in your state to apply for your license. You’ll prove your identity, then have your eyesight tested. You’ll also undergo a theoretical knowledge test – so be sure that you’ve studied.There’s no way to get around this next part; it’s expensive to have the required truck and instructor you need for your practical assessment. In every state and territory bar NSW, your driving school instructor, if accredited to do so, can take you for your practical assessment and assess you.
Once you’ve passed your practical test, you have to go back to the transport authority. You’ll pay the fee and have your picture taken for your new license, like when you got your car license. You’ll usually get a piece of paper certifying you’re licensed, to use as proof until your printed license is posted out to you.
Get insured and get driving
Now that you’ve passed and received your new truck license, you need to consider what’s next. Once you’ve gotten your insurance sorted, it’s time to start applying with trucking and transport companies, or start your own! For any financial advice you might need when it comes to purchasing your new truck, we’re here to help. Our brokers here at Asset Finance Shop are specialists in truck finance, and we’ll help get you into the truck you’ve been wanting. Talk to us today to find out more.
Trucking can be a very lucrative occupation, but don’t let the lure of money fool you into thinking it will be easy to start your own business. There are many things to consider and steps to take before you begin your new trucking operation.
Here’s a basic guide to starting your own trucking business.
Each state has its own rules on the licensing and permits you need to start driving commercial trucks for a living. Your local department of transport can help you apply for the correct qualifications so that you start on the right foot.
Register for an ABN or ACN
All businesses in Australia need to register for an Australian Business Number (ABN) or an Australian Company Number (ACN). You need to decide if you’ll be registering as a sole trader or a company so that you apply for the correct registration.
Decide on the right truck for your business
You need to ensure your truck is the right size and has the correct capabilities for the type of trucking business you’re starting. Then you need to decide whether you’re purchasing outright or if you’re going to talk to a finance broker about truck finance. There are different ways you can go about it, such as asset finance or low doc loans. Leasing, hiring and buying options can get confusing, and a broker will get you the best deal for your needs.
Get the correct insurance
It’s crucial that you keep your business protected in case things go wrong. Covering yourself, your truck, your business, your cargo, any other drivers, and the general public needs to be done before you start driving. An insurance broker will advise you on the types of insurance you’ll need for your circumstances so that you’re adequately covered.
It’s time to hit the road
Once you’ve done these steps, you’re ready to start trucking. Having your logo on your truck is great advertising, but you should also develop a marketing strategy to get your name out there. Then, as your business grows, you can start to recruit other drivers to help you manage the workload. To ensure you get your trucking business off to the best start, get expert advice when necessary so that you’ve got everything covered. The team here at (insert business) will guide you through applying for truck finance once you’ve found your new heavy vehicle, so be sure to call us! Good luck with your new trucking business!
There is a range of options when looking at truck and heavy vehicle finance, and navigating the different loan terms and conditions can be challenging for even the most financially-savvy individuals. That’s why it’s advisable to use a truck finance broker when making such a large purchase.
Want to know more about why you should use a truck finance broker? Here are three reasons why.
What does a truck finance broker do?
First off, you should understand what a finance broker does. A broker searches for finance and applies for it on your behalf. They take into account your financial situation, including your cash flow, to find the best finance option for your business. A good broker will guide you through the whole process, including after the finance has been approved.
They deal with the complicated side of financing
It’s not as simple as finding a loan, applying for it, and being approved. A finance broker understands how to navigate and negotiate with different financial institutions and lenders, which most people haven’t done before. They know what information lenders want to see in finance applications, and how to negotiate better loan conditions that are more suitable for you. You could apply for a loan yourself and be denied, but engaging a broker significantly improves your chances of being approved for that same loan.
They specialise in truck finance
Like you have mortgage (or home loan) brokers, there are brokers that specifically deal in financing for trucks and other heavy vehicles. Part of their job is to stay up-to-date on changes in the truck finance area so that they can always offer the best deal and negotiate certain terms and conditions. They’ve often got industry contacts as well, which opens up more financing options for you. They know all the specific industry tips and information, which you wouldn’t otherwise have access to.
They’re often available after hours
Unlike with a bank manager, you’re likely to have a lot more access to your finance broker. They’ll often give you both their office and mobile number, and answer your calls outside of normal business hours. This means you don’t have to wait until Monday morning if you want financing advice, which is useful when you’re looking at trucks on a Saturday.
Finding the right truck finance broker will make things simpler
When you build a long term relationship with a broker, they’ll get to know and understand your business in a much more comprehensive way. The more they know, the better they can customise finance to suit your needs at any given time. If you’re looking for advice on truck and heavy vehicle finance, get in touch with our team today. One of our expert brokers will help you and your business with any of your truck finance requirements, providing personalised advice and giving you the best chance of approval. We work with a large network of lenders, allowing us to get special deals and interest rates you won’t get elsewhere.