When you're buying a new truck you have plenty of decisions to make around which specific truck to select. Across all classes and categories there are a great choice of manufacturers, each with their own range of models. Depending on your industry, your business applications and your budget, the choices can be vast. Hand in hand with sourcing the right truck is usually the process of sourcing a truck loan.
When embarking on the journey to secure truck finance, the initial choice buyers must confront revolves around selecting the right lender. With an abundance of options including banks, brokers, and non-bank lenders, buyers find themselves in the position of scrutinizing and evaluating the various offerings to arrive at an informed decision. To provide you with guidance, we present a decision-making framework that you can follow to ultimately identify the most suitable lender to cater to your truck loan needs.
Truck Lender Options
The commercial lending market is quite vast with buyers faced with numerous options. The ‘right’ lender for you is the one that makes you the truck loan offer that best suits your needs and for most business owners, that goes hand in hand with the cheapest interest rate truck loan.
The lender options for truck loans include:-
- Banks: the Big 4 are usually the most popular and common choices for most business finance and they can be competitive.
- Dealer Finance: this is finance offered at the point of purchase by the dealer and can often be the manufacturer finance. This option can appear convenient but only gives you the one choice of finance company. Sourcing separate quotes to compare with dealer finance can be an astute move.
- Non-Bank Lenders: this category encompasses many finance companies. Some are well-known names as they operate in both consumer and business finance. Others are less well-known in the public domain because they specialise in commercial sectors, don’t tend to advertise widely and often deal on an industry level. That means through their select group of finance brokers. A lender that specialises in heavy vehicle finance and/or truck loans can often be more flexible and more in a position to negotiate on interest rates and terms than say a bank.
- Broker Lenders: lenders such as Jade Truck Loans have access through accreditation with both the non-bank and banking sector when it comes to finance. We offer more choices than dealer and bank finance and provide access to specialised lenders.
The initial step involves deciding whether you want to handle your truck loan independently or entrust it to a broker-oriented lender like Jade Truck Loans. Numerous operators prefer maintaining control over all their business choices and may choose the DIY route. If you opt for this path, you’ll be tasked with obtaining quotes from your bank as well as several non-bank lenders. This enables you to make comparisons and attempt negotiations as you navigate through the process.
In reality, when you do go with Jade Truck Loans as your lender, you are still in control as you make all the key decisions, but we do the hard, detailed and time-consuming work for you.
You don't necessarily have to independently choose the lender when you work with us. When you enlist our services to facilitate and secure your financing, we proactively navigate the entire truck finance landscape on your behalf. Being accredited with numerous banks and lenders, we meticulously source the most economical quote that aligns with your defined criteria. We then present you with our curated offers, placing the decision in your hands whether to accept or decline the proposal.
Should you indeed desire to personally select your lender, Jade can assist with that process as well. If you have a preference for your bank to handle your loan or if you've had positive prior interactions with a specific finance company and wish to proceed with them, we can manage the interactions on your behalf.
Lender or Loan Type First?
Should you decide which loan type you want first or which lender to go with? Most of the lender options will offer a similar range of loan types.
The types of loans available for truck finance include:-
- Chattel Mortgage for truck & trailer financing
- Truck Leasing
- Commercial Hire Purchase
- Truck Rent
- Rent-to-Own or Rent-to-Buy
Not all lenders extend every type of loan, and the interest rates associated with these loans can differ across lenders. You can easily discern these interest rate discrepancies through our interest rate comparison calculator.
The variance doesn't just stop at interest rates; it extends to the conditions and eligibility criteria unique to each loan type offered by different lenders. If you were to undertake this process independently, it would involve scrutinizing and comparing the criteria and conditions presented by each lender. Key aspects to assess include the duration of time the applicant has been in business, minimum loan amounts, non-negotiable and maximum loan terms, as well as any distinctive criteria imposed by a lender.
To simplify this process, it's advisable to initially determine, in consultation with your accountant, the specific loan type you require. Subsequently, you can either personally source quotes for that precise loan type from various lenders or provide your Jade consultant with specific instructions. With our service, we delve into a comprehensive array of lenders to acquire a quote that best aligns with your instructions, securing the most cost-effective offer for you. The ultimate outcome is securing the most affordable truck loan, complete with terms that cater to your specifications, thereby identifying the right lender for your needs.
To discuss what lenders we can source for your truck loan, contact Jade Truck Loans on 1300 000 003.
DISCLAIMER: THIS ARTICLE IS PREPARED AND POSTED WITH THE INTENTION OF PROVIDING GENERAL INFORMATION AND NOT WITH THE INTENTION THAT IT BE THE ONLY SOURCE OF INFORMATIONON WHICH TO MAKE FINANCIAL DECISIONS. THOSE REQUIRING FINANCIAL ADVICE AROUND THEIR INDIVIDUAL SITUATIONS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPT FOR ANY MISREPRESENTATIONS OR ERRORS IN THE CONTACT AS SOURCED, IN GOOD FAITH, FROM A RANGE OF SOURCES.
