When you’re buying a truck or ute, whether it’s for work or for your weekend surfing or camping trips, the key thing you should consider is whether the truck can really do what you need it to do.
It’s easy to get excited about getting a V6 engine, bigger wheels, or something with real sex appeal, but at the end of the day, that’s what’ll end up costing you.
This is demonstrated pretty well here, where the author point out that a sturdy minivan does all and much more for a quarter or less of the price of a fancy pimped up ute.
To work out what your new work truck will cost, you’ll want to use a truck finance calculator to get monthly payments that fit neatly within your budget.
You’ll need to know the purchase price of the truck that you need, how long the loan term will be, and a what your credit history is like.
You can get a truck loan for a new truck or for a used truck, so buying second hand is a good way to limit the depreciation on your new asset.
You can get truck finance whether you’re an owner-driver with your own business, you run a small to medium enterprise, or a truck is just one essential part of getting your job done.
Truck finance is available if you are self-employed with our Low Doc Truck Loans.
You can also get a truck loan if you’ve missed loan payments in the past or if you’ve been through a bankruptcy - getting a bad credit truck loan and making your payments on time could be the first step to creating a positive credit score for your future.
There’s two main types of truck finance that you can get if you’re using your truck for work.
The most common one is a chattel mortgage. This type of finance allows you to take advantage of GST and depreciation tax benefits available from the government for businesses.
You can find out more about chattel mortgages and how they work here:
Hire Purchase is an arrangement where the financier purchases the truck that you will use. During the term of the hire purchase agreement, the lender holds the ownership title of the truck, but you will have use of it.
When the contract ends and the final payment is made, the car will be registered to your name or your business, and you’ll take ownership.
You may choose to include a balloon payment at the end of the loan term to lower your regular installments.
With a hire-purchase agreement you can claim GST and input tax credits on the interest that you pay on the loan. The interest rate will be fixed for the duration of the loan, so payments will be known in advance and can be including in setting your business budget with certainty.
One way to make the most of your truck finance loan is to keep your running costs low while you get to where you need to go.
You can keep your fuel costs down using this handy app Fill My Tank to find the lowest fuel prices wherever you are in Australia.
In Europe, the first test drives of driverless trucks are being carried out. The trucks communicate via wifi, and drive in convoy to maximise draft, saving on fuel and emissions.
It’s still a long way off, but there’s a lot of potential for these innovated road trains, especially in Australia with our vast open spaces.
Now you’ve got an idea of how truck finance works and the options that are available, you’re ready to take the next step. You can apply online for a truck loan pre-approval, or call 1300 722 210 to talk to a truck loan broker and get an idea of your real truck finance options.