With the growing popularity of employment in the short and long haul trucking industry, especially with increasing demand for workers in the west of Australia; truck finance is becoming more common. With salaries in the range of $100K – $200K per annum and even hefty relocation incentives up to $10K, it’s no wonder that more and more Australians are switching up their careers and getting behind the wheel.
These incentives, however, are limited for those who don’t have their own vehicles. Renting a truck or having a part of the salary deducted is an option, but getting truck finance and owning your own wheels pays dividends in the long run. Depending on the type of truck you require, these can put you out anywhere from $30,000 – $100,000 when purchasing outright. Finance however, is very affordable and repayments can be flexible dependent on your needs. So that you are completely aware before making such a big commitment, we thought we would share 5 tips that will make the process that much easier.
Consider your budget
Repayments can vary depending on your lender and your needs, but a truck, semi and haulage vehicle is a large investment for your career/business and therefore the monthly payments could be quite high. You will need to be able to maintain this comfortably, so be sure to go over your budget realistically and know how much you can afford to repay consistently. If you think about this early on in the process, you won’t wait your own time by looking at loans that don’t suit your circumstances.
Shop around for lenders
There is a endless number of lenders who will claim to offer “the best truck finance available”, so take it with a grain of salt and make sure you shop around before deciding who is the best fit or offers the best deal for your needs. There are loads of comparison websites available online or you could conduct your own research. The best option however, is to talk to experts in truck finance, such as our team at National Finance Solutions. Not only do we have an enormous range of lenders and competitive rates, we will fight them to get the best deal for you. The reason this works so well is that you have no obligation or cost to you until you are completely happy with the result and deal, and even then our fees come from the lender, not yourself. This means you can sit back and rest easy knowing you have been taken care of, not taken advantage of, and that you have the best deal possible based on your requirements and repayment needs.
Make sure the finance is exactly as you want it
Check the details, then check them again. You want this work to work for you and your needs. If you lose work, will be finance be flexible for your situation or can you arrange extensions on payment? Can you make additional repayments? Are there fees for refinancing? Making sure you have all your bases covered it vital before finalising your loan. Your loan specialist will be able to talk you through all of this to make sure you completely understand the requirements and terms and that you’re getting the best possible loan.
Have some savings of your own to contribute
Whilst it might seem fine to just finance the entire cost of your new truck, it’s advised to have some savings aside to either partially reduce the loan amount of to cover unexpected extras that come up. This might be things such as insurance, unexpected servicing or perhaps custom add-on features that you want for you trucks. Having a little extra money aside can simply give you piece of mind that in an emergency, you have a cushion of cash to fall back on, which can make all the difference.
Consider tax concessions and deductions available to you
As this truck will most likely be a business expense, there will be tax concessions available which may be beneficial for you as a business owner or sole trader. Because there are so many different concessions available, as well as sometimes confusing depreciation and costs involved for the truck asset, it’s best to seek financial advice. Getting professional taxation and accounting advice for any large business purchase is vital to getting the most effective financial strategy in place; it can have a huge effect on your overall finances.
All in all, the more informed and prepared you are when thinking about truck finance, the better off you will be. Thorough research and some professional advice can see you with the best possible loan and truck for your situation. At National Finance Solutions, we respect your time and understand that when you need a truck, heavy machinery or equipment for your business you need it now, not tomorrow. Whether you’re an individual operator or a large company, our goal is to match you to the ideal loan as efficiently as possible. You can apply for an obligation free quote online or contact our friendly team on 1300 13 50 50 to discuss how we can help you.
