Semi Truck Financing Without a Deposit
There are several ways that trucks are important to Australia’s financial austerity; from transporting over 70% of freight tonnage, to giving over 7 million individuals a job in the industry. In fact, they’re so crucial that many would even agree that the economy would come to a halt if we didn’t have these vehicles.
If you’re considering starting up a trucking business, or need a new piece of equipment for an existing firm; you may already have an idea of how high their costs can be. Often coming to over $80,000 per truck, it’s not hard to see why so many people struggle to get the equipment they need. However, there are opportunities open to those who can’t afford to buy a truck outright.
In most cases, there are a number of commercial truck financing options that can allow a company to get the trucks they need without the unavoidable costs of purchase, so here are the ins and outs of financing a commercial truck.
How does commercial truck financing work?
First and foremost, financing can be very different to taking out a loan for a vehicle that’ll be used for personal purposes – and while many lenders will be able to help in a range of instances, there are a number of dedicated lenders that only work with those who are in need of commercial truck finance.
In the case of a semi truck loan, you’re likely to find that the terms can vary quite a bit depending on your unique circumstances, which is why it can often be a wise idea to find out what deals are available before you make any decisions.
What do you need to qualify for commercial truck financing?
In general, a lender won’t just give anyone the option to finance a truck – instead, they’ll often give loans to those who fit their criteria. There is likely to be a host of information that they will need to take into consideration before they decide to help you.
A few of the things that they may want to know about the truck you want to purchase could include:
- The make and model
- The year it was made and km’s on the clock
- Whether it’s new or used, sold privately, or from a dealer
Aside from the vehicle, a lender will often want to know a bit more about you too, such as:
- The structure of your business
- The firm’s profitability (based on finances and tax returns)
- The type of company you run and if you are the owner
- How long you’ve been in business
- Your credit history and score
There are quite a few things that you may want to keep in mind, like the fact that the truck itself will often serve as the loan’s collateral – and that for semi truck financing options, your rates and terms are likely to vary quite a bit from another person’s loan.
If you own property, you may be able to get a more competitive interest rate, qualify for 100% financing and you may even be able to avoid putting down a deposit. However, if you don’t have the extra security of a home in your name, you may need to put down a deposit for the loan.
Disclaimer
This blog article does not necessarily reflect the opinion of the publisher or supplier. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, supplier, authors nor their employees, can be held liable for any inaccuracies, errors or omission. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this newsletter as a substitute for professional advice.
Your full financial situation would need to be reviewed prior to acceptance of any offer or product
Credit Representative Number 496186 is authorised under Australian Credit License Number 389328
