Truck financing options can lighten the load as far as a borrower needing to cover the initial expenses of the purchase are concerned. Most lenders in Australia – particularly Melbourne, will offer these types of financing options; options that can be made even more beneficial when using a finance broker that deals in these types of loans.
Here’s a closer look at three helpful financing options for purchasing a truck – all of which are available to commercial and personal applicants (as long as they meet the required criteria).
Truck Asset Leasing
This is one of the most popular methods of taking out finance, as it allows a lot of manoeuvrability for the borrower. The lender will need to agree to the terms proposed and then purchase the truck outright. They will then be able to lease or rent the vehicle back to the borrower on a monthly basis and for as long as the payments are made.
The borrower will then have the option to continue making their repayments until their payment term ends, whereby they will have the option to continue leasing the truck or pay off the remaining sum to purchase the vehicle from their lender and exchange ownership permanently.
If the borrower wishes to take ownership of the truck from the offset without actually using their cash to buy it – then a chattel loan might be the way to go. It’s fairly straight forward to apply for and works in much the same way as a regular mortgage. The borrower will be free to use the vehicle however they see fit in much the same way as a mortgage borrower would with their home – but only for as long as they meet their repayments.
If the lender doesn’t receive their regular payments to cover the cost of the truck in instalments and with interest, they will use the vehicle as collateral and may repossess it if necessary.
CHP loans, or commercial hire purchases, are an option made available to borrowers that want to put their new truck to good use; without being the owner until everything has been paid off. The lender will buy the vehicle on behalf of the borrower – who will then be responsible for repaying the cost with interest over the course of the preceding years.
Once the total amount has been repaid, the ownership can be changed over into the borrower’s name; allowing them to be the sole owner of the truck.
Speak to us at https://goo.gl/GtyJLB to find out what options are available to you!