Truck Finance: An Overview
Getting your business running requires investment from your end to the many aspects of your enterprise. From the capital itself to manpower, machinery, and transportation. And for the purpose of this post, we’re focusing on the latter.
We at Browntruckparts.com understand how it is, to build your budding (and now growing) venture into the empire you dream it to be. With the right means of transportation, you’ll be on your road towards business success.
By that, we mean it in its literal sense. Trucks are an integral part of any business endeavor, especially if you focus on commercial goods that need to be hauled from your manufacturer, warehouse, and then to your sellers or straight to your customers.
However, purchasing the best trucks warrants cashing out huge sums of money. If you aren’t sure about such a splurging, there’s an easier, more practical solution— truck financing. Also known as truck loans, these are your ticket to holding the keys to your own truck without hurting your finances. Here’s why.
What Is Truck Finance?
Truck finance is a type of load that’s distinct to financing purchases for trucks and/or other similar vehicles. It’s a funding aid that’s for trucking services. Instead of having you cash out from your own pocket or wait until you do, here’s a method of owning a truck without having to pay for it in whole and upfront.
Should You Go For A Loan Or A Lease?
But before we get into it, let’s talk about loans and leases. Which option is the better one over the other?
Without getting into complicated explanations and jargon, leasing a truck works very much like leasing a house. You pay in instalments, and these instalments act both as a rental fee that, when the term is completed, allow you to own the truck.
On the other hand, taking out a truck loan will automatically name you as the owner of the vehicle at the moment.
Before you make your decision, it’ll be good to go back to your credit history and check your credit score. Although there isn’t any significant difference in terms of the amount you’ll be repaying whether, through truck financing or leasing, the latter is better suited if your credit history isn’t flawless and sparkly.
Only, you’ll have to ascertain the interest rates of the entire contract. Ask about embedded rates and other top-ups that might arise as the contract comes to completion.
Contrarily, if your slate is clean, then, by all means, go for a truck loan. At
Benefits Of Truck Financing
Affordability
As mentioned above, among the advantages of relying on truck financing is that you can immediately own a truck even if you don’t yet have the full amount to pay for it. Think of it as an instalment plan that you can repay in a contracted series within a certain timeframe.
Faster Approval
Unlike the process of buying a new vehicle, with our quality second-hand trucks, you won’t have to go through a needle in order to put your name on one. Most of our customers are approved for a truck loan because the qualifications aren’t as strict as that of regular loans.
Apart from this, there won’t be a long wait from the moment you submit your application, have it evaluated, and find out what the result is. As long as you have a few moments of your day to wait it out, within less than an hour (or a day, if the customer list is piled up), the lender is able to tell you you’re eligible for truck financing promptly.
Easy Assessment
On the off chance that you’re still contemplating on your decision, why not get an assessment from possible lenders? This way, you’ll have an idea of what the repayment options might be, along with their accompanying interest rates, and the length of term for remuneration.
Direct Truck Finance Specialists
Truck financers frequently have specialists who’ll directly work with you during your application. No brokers and other middlemen whom you’ll be paying additional to. To add, you can directly ask questions to the specialists themselves and have them answered real-time, and with numbers closest to the actual rates once calculations have been done.
Application Requirements
Lastly, the application requirements. They’re really not as complicated as you imagine. You’ll simply have to fill out a form which can be accomplished online. Afterwards, have your personal documents at hand. Proof of identity and proof of residence, credit history, employment and income documentation, etc.
Once you have them compiled, make copies and submit them to the lending agency of your choice.
If you want to conduct a self-assessment, you can turn to an online truck loan calculator. With this free tool, you’ll be able to input the repayment amount you feel you can follow through with each month. Further, try to learn what said repayment amount will be if you change the term length. These will, as a result, also show you possible interest rates.