While many fees, charges and pricing schedules are timed in line with the financial year, 1 January each year still signals routine increases in prices in some areas. Typically, individuals and businesses can also expect a raft of regulatory changes and laws to come into effect at the start of each year which can impact business costs. Some toll roads and motorways automatically increase prices on 1 January each year adding to the operating costs for many trucking businesses.
In 2021, Monday 4 January signalled a decrease in the JobKeeper program prior to its scheduled conclusion at the end of March. For those businesses that have been benefiting from this COVID-19 economic stimulus measure since it was introduced in April 2020, the reduction in payments and final phasing out may be a big hit to your bottom line.
With these scheduled increases on your mind, it’s not surprising that some truck owners and those considering a new truck purchase, may wonder if truck loans will also increase at the start of each year. If your existing truck loan was arranged with Jade Truck Loans or you’re planning to speak with us about a new loan, then rest easy. Jade arranges loans with a range of fixed elements which will remain constant and unchanged through the loan term.
We’ll go through the detail to explain how it all works.
Interest Rate Fluctuations
Interest rates in general are not scheduled for routine increases on any date or at any specific time. The Reserve Bank of Australia (RBA) set the official cash rate at their monthly board members (each month except January). The last change was at the RBA’s November 2020 meeting when it was cut again in response to the ongoing effects on the economy of the coronavirus pandemic.
The official cash rate is the rate which determines the rate that individual banks and non-bank lenders establish for their own interest rates – both for savings accounts and for loans. Individual lenders will also vary their rates based on their own set of determinants which may include global economic conditions and their analysis of the Australian economy prospects. Focussing closer in on the industry and heavy vehicle finance sector, individual lenders set their loan rates based on their exposure to, interest in extending finance to and other factors.
Narrowing our focus to the individual truck loan application level and Jade sets our truck lending interest rates based on the cheapest rates that we can source from across our lending panel. Our rates reflect the lending market’s rates and the negotiating skill and expertise of our consultants.
The interest rate on our different loan products vary – Chattel Mortgage for truck loans, CHP, Leasing, Rent-to-Own truck loans – based on differing loan conditions and structure. To make it easy for you to see exactly what interest rates we area achieving on different loan types, simply refer to our Loan Comparison Calculator. We’ve listed our loan products and the current rates we are achieving across our comprehensive portfolio. The rates will change over time in line with the market.
Currently interest rates in general are at historic low levels due to the RBA setting the cash rate at 0.1%. That’s not the rate that lenders offer on business finance by the way. On the back of the RBA Governor Philip Lowe’s comments, analysists and economic commentators expect interest rates to remain low for some time. Any changes will be likely be driven by the GDP figures as a sign of economic growth.
Fixed Interest Rate Loans
Let's delve into the specifics of your dedicated truck loan and explore our prevailing truck loan interest rates. One of the remarkable advantages offered by a Jade truck loan is our commitment to securing a fixed interest rate for all our loans. We undertake negotiations to secure the most competitive rate for your individual loan application, and once set, that rate remains constant throughout the entire duration of your truck loan.
The interest rate attached to your truck loan remains unwavering over the entirety of the stipulated time frame. Moreover, Jade incorporates other fixed components within your truck loan structure. This encompasses a fixed loan term, and correspondingly, fixed repayments. Therefore, across the span of your loan's term, all constituent factors will remain steadfastly unaltered. This alleviates any concerns related to dates like January 1st or June 30th in connection to your existing truck loan, especially when orchestrated through our services.
New Truck Loans
For those considering a new truck loan, our fixed element loans are standard and ongoing across our portfolio. Individual lenders may make adjustments to their own fees and charges structure but your Jade consultant will always be seeking the cheapest loan for you.
Our loan portfolio includes:-
- Chattel Mortgage
- Commercial Hire Purchase
- Leasing
- Rent-to-Own
You can review all the features and benefits of each loan in our web pages and if you have any questions, refer to our FAQs sections or give us a call.
Consistency for 2021
Our strategy for 2021 revolves around consistently providing cost-effective truck loans. This will aid truck owners and operators throughout Australia in managing expenses, simultaneously boosting productivity and profitability by acquiring new vehicles.
Contact Jade Truck Loans to discuss your truck finance requirements on 1300 000 003.
DISCLAIMER: THIS INFORMATION HAS BEEN PREPARED FOR THE PURPOSE OF GENERAL INFORMATION AND IS NOT INTENDED AS FINANCIAL ADVICE OR THE ONLY SOURCE FOR THE PURPOSE OF MAKING INDIVIDUAL FINANCIAL DECISIONS. IF A READER CONSIDERS THAT THEY REQUIRE ADVICE ON THEIR FINANCIAL SITUATION, PROFESSIONAL ASSISTANCE AND ADVICE SHOULD BE SOUGHT FROM A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATIONS OR ERRORS IN DATA, CONTENT AND INFORMATION AS SOURCED FROM OTHER PARTIES. THE INFORMATION PRESENTED IS FOR GENERAL INFORMATIVE PURPOSES AND READERS ARE ADVISED TO FOLLOW UP INDEPENDENTLY.
