Understandably, this is the most commonly asked question by truck buyers sorting out a truck loan. What will MY interest rate be? Interest rates are the drivers of truck loans. The rate sets how much you will pay overall, in total for your truck finance. The rate in conjunction with the loan term, determines the monthly loan payments – a key factor in juggling the ongoing expenses and balancing the budget. We don’t like to be beaten on interest rates, so clearly we are totally fixated on achieving the cheapest truck loan interest rates for our customers.
You don’t have to be a tech nerd to see what different interest rates are on offer in the market – there are ads and promos on just about every bank, finance company, lender and truck manufacturer website. Though some manufacturers that offer finance may advertise ‘from $xxx per month’ rather than a rate and some lenders usually advertise interest rates with a conditional ‘from’.
Relating all that to your particular loan can be load of enquiries and calculations. To simplify the interest rate scenario and provide you with steps to finding your perfect truck finance in Australia, we’re providing this interest rate overview.
Interest Rates across the Market
Interest rates vary for different types of finance and loans. The interest rate for a home loan is different from a truck loan which is different to say a business car finance. Why? Because the loans are structured differently, the security is different and for other reasons.
The official cash rate is the interest rate that banks can access their funds and is not the interest rate at which businesses and consumers can borrow money. So when you hear news such as the Reserve Bank has slashed interest rates to .xx%, that won’t be the interest rate you’ll get on a truck loan. Sorry!
Different banks and lenders will set varying interest rates for each category of finance they offer based on a number of determinants including what they have to pay on their money, how active they are in a particular loan sector, general economic indicators, how keen they are to write business and other factors.
The greater confidence a lender has in an industry, the better the interest rate they are likely to offer on finance to operators in that industry. Jade Truck Loans is accredited with both the major banks and multiple non-bank lenders. We have the industry-level network of connections to know who is offering the cheapest rates on different industries, such as truck finance, at any one time.
Interest Rates across Loan Types
Interest rates on truck loans vary across the different types of loans available. Chattel Mortgage and CHP usually have the same or similar interest rates, while Leasing and Rent-to-Own have different rates. This is due to the structure of the loan itself.
We have set-up a Loan Comparison Calculator which shows the interest rates we are currently achieving for the portfolio of business loans and finance that we offer. You can easily see the variations in the truck loan categories.
By entering the amount of your truck loan, you can see an estimate of repayments for each loan type. When applying for a truck loan, your Jade consultant will be working to achieve that cheap interest rate on your loan. Interest rates may vary based on individual applications. For special categories such as ABN, No Docs and Low Docs loans, achieving our cheap advertised interest rate is possible but additional loan conditions and stricter criteria will usually apply.
The type of truck you are buying – make, model – does not impact the interest rate on a truck loan. The age and condition of a used truck may impact some conditions on the loan including the loan amount and term offered.
Selecting Loan by Interest Rate
So if the interest rate is cheaper for say Chattel Mortgage than Rent-to-Own, why wouldn’t you just go with the loan type with the lowest interest rate? Good question, sounds logical. But not the right answer. While the interest rate is a very important factor in a truck loan, there are other aspects to consider in selecting the finance product. Long-term objectives and other factors may outweigh a lower interest rate for your business.
We advise all our customers to refer to their accountant or financial advisor for advice on the most suitable loan product for your business.
What rate will you be offered?
So we’ve taken the long route to get to your requested destination. That being the interest rate you will be offered on your truck loan. In simple terms, Jade Truck Loans achieves the cheapest interest rates on truck loans.
As mentioned above, we display the current interest rates we are achieving across our loan portfolio, based on good credit applications and other criteria. These rates can be achieved for many truck buyers.
At Jade we address every truck loan on an individual basis and negotiate for the cheapest rates and the most suitable loan conditions for our customers. To find out exactly the quote we can achieve for your truck purchase, speak with one of our consultants or send through a quote request online.
To discuss your truck finance requirements, contact Jade Truck Loans on 1300 000 003
DISCLAIMER:THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE IS FOR GENERAL PURPOSES ONLY, IS SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.