Financing your truck

When it comes to buying a truck, new or used, it is a bigdecision. Whether the truck is part of your business operation or simply forprivate use, it is important to choose the right truck for you. To ensure youcan manage the payment of your desired truck, financing is available and can betailored to your needs.

How do you know iffinancing is right for you?

The most common situations where customers considerfinancing are when:

• They have secured a contract and are new players in thetruck industry;
• They have secured a new contract, but their existing truckis not right for the job;
• Or, they are growing their business and cash flow is tight,but they can t secure new contracts without acquiring more trucks.

While truck financing options will vary from person toperson, and business to business, there are a couple of important factors tokeep in mind. Firstly, it s crucial you choose the right truck for the job andyou position yourself to have the best chance of getting your loan.

What is the best wayto secure the right financing to support your truck purchase?

Selecting the correct type of truck is essential to ensureit completely services your needs and your investment is maximised. Also bearin mind that you need to start making money as fast as possible to pay backyour loan, so the truck needs to be road-ready on purchase.

A key decision is whether you purchase a new or used truck.While a used truck may initially cost less, the long-term cost could be moreexpensive due to higher fuel costs, repairs and maintenance. When reviewingtrucks, take into account its mileage, previous owner, engine type and previousrepairs. Furthermore, if repairs are likely to be required, you will need tofactor in this time. Alternatively, the upfront cost for a new truck is higherbut there will be less down time for repairs in forthcoming years as well asthe inclusion of a warranty. Additionally, there are costs such as insurance, registration, tools andmore that need to be considered. With all these costs to think about, it simportant to look for financing options that will reduce costs and increaselongevity for your business.

When picking your truck, avoid ones that will guzzle fueland demand repairs. Favour elements like aerodynamics, light tare weight andtyre strength to minimise the truck s fuel consumption per km. Comfort and operationease should also be capitalised when choosing your truck. Look for lots ofhorsepower, easily accessible driver controls, and automated transmission.

Researching the right truck for you and prioritisingfeatures means you are likely to get a loan that will fit your needs. Financingcompanies appreciate you doing research to ensure you can present the bestoptions for your job.

If you need further assistance with understanding financing for your truck, please refer to www.truckworld.com.au/Resources/Truck-Finance.