The term ‘No deposit finance’ is commonly used, but not always fully comprehended by loan seekers. It is frequently employed by sellers of trucks, cars, and other vehicles to entice customers, offering the opportunity to acquire a vehicle without using their existing cash. This option is particularly appealing to businesses with limited cash flow, allowing them to wait for their customers to settle invoices.
At Jade Truck Loans, yes, we offer no deposit truck finance – for some customers for the purchase of some trucks and a large majority of our customers take advantage of this when structuring their loan.
No deposit finance essentially enables borrowers to obtain the full purchase price of the truck without putting any upfront money down. However, in the lending sector, generalizing with broad statements is not appropriate since each loan application is evaluated individually. Therefore, we will delve into the specifics of no deposit offers to determine whether it is possible, likely, or perhaps just a mere wishful thinking for your unique circumstances.
Differentiating Deposits
Firstly, it's crucial to understand the distinction between the deposit requested by the person selling you the truck and the deposit asked for by the finance company lender. If you are purchasing a new truck directly from a manufacturer or through a dealer, they might request a deposit to confirm the order. This ensures they can proceed with preparing your vehicle for delivery, which may involve customization or installing the trailer of your choice.
On the finance side, when you approach Jade Truck Loans for a quote to purchase the truck, you can request 100% of the purchase price. If we source and finalize an acceptable loan offer, the lender typically does not require a deposit. Instead, most commercial finance facilities will require the first repayment to be made when the finance contract is signed.
If you have already paid a holding deposit on the truck and are subsequently approved for a 100% purchase price loan, the dealer usually has the ability to refund the deposit back to you.
Who is eligible and who is not?
Now to the nitty gritty. Jade Truck Loans consultants always work hard to achieve our customer’s preferences and source loan offers that meet their requirements. If you want 100% of the purchase price covered in the loan, we will work to that objective.
- For the purchase of a new truck by a business with a good credit history, fully documented loan application and strong overall applications, there should be a very high probability of achieving a no deposit truck loan.
- For the purchase of a used truck by the same business, the possibilities may decline slightly. Individual lenders will take into account the age and condition of a truck when assessing the loan risk. Assessing loan amount relative to the value of the truck. In some cases, the lender may request the borrower pay a deposit to the seller in order to reduce the overall amount of the loan requested.
- For businesses without the full documentation usually required for a loan, or with credit issues, the possibilities of achieving a no deposit truck loan dim somewhat. Low docs, no docs and poor credit truck loan applicants should be prepared to be offered a loan at less than 100% of the truck purchase price, regardless of whether it is a new or used vehicle. These are relatively standard conditions for that type of loan and we have outlined these details in our web pages.
Eligible Loan Types
No deposit truck loans can be sourced by Jade for our full range of truck finance products, including:-
- Chattel Mortgage for truck & trailer financing
- Leasing
- Rent to Own
- Commercial Hire Purchase
Things to Keep in Mind
If you fall into the category of a low docs, no docs, or bad credit applicant and receive a no deposit truck loan offer from a source other than Jade Truck Loans, it’s essential to carefully examine the fine print. There could be a higher interest rate attached to the loan, surpassing what we can obtain for you, or hidden charges designed to compensate for the heightened risk associated with this type of loan.
At Jade we source the cheapest truck loan interest rates and work to achieving the best outcomes for our customers in all aspects of the loan. We’re upfront with the details on all our loans and as a member of the FBAA, we abide by their Code of Conduct.
We always advise that our customers refer to their accountant or financial advisor for discussion around their individual circumstances.
When diving into the truck financing landscape, most truck buyers primarily look for a cost-effective loan. However, affordability is equally crucial. An "affordable" loan implies a loan that aligns seamlessly with your cash flow, ensuring that you can reliably meet your monthly financial obligations without undue strain.
For those who've previously locked into a less optimal finance deal, Better Interest Rate Refinancing can be a potential solution. By reassessing your existing terms and potentially transitioning to a loan with a more favorable interest rate, you can significantly alleviate your monthly financial burden.
If you're aiming for a truck loan that aligns with a specific repayment figure – one that resonates with your cash flow aspirations – engage with your Jade consultant. They can guide you in structuring your loan accordingly. Options could include adjusting the residual/balloon figure or even extending the loan term to bring down the monthly repayments to a more manageable level.
To discuss a no deposit truck loan, contact Jade Truck Loans on 1300 000 003
DISCLAIMER: THE INFORMATION WHICH HAS BEEN PREPARED AND PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIVE PURPOSES ONLY. IT IS NOT IN ANY WAY MEANT TO BE USED AS THE ONLY SOURCE OF INFORMATION OR ADVICE IN REGARD TO FINANCIAL DECISIONS. IF YOU CONSIDER YOU NEED GUIDANCE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR. THE DATA, DETAILS, SPECS AND OTHER MATERIAL PRESENTED IS SOURCED FROM VARIOUS SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS AND MISINTERPRETATIONS IN PRESENTING THIS INFORMATION.
