subject: Own A New Truck With The Help Of Truck Loans [print this page] Own A New Truck With The Help Of Truck Loans
You've a new business or else a burgeoning one in that you need to expand, but you may not have the capital to purchase a brand new truck. A new truck, however, would be your best investments made in order to meet the needs of your clientele. Or perhaps your present needs are not being met because you have an older truck, or even one costly in repairs. So as to help you with the crucial business investment, there are many choices that are available for you in Australia.
One best option is to lease finance your truck, that means the truck will also be purchased by the finance company, who will then rent or lease the truck to you for a particular period of time. The truck is owned by the finance company, which releases you from some legal responsibility, and there are programs that allow you to lease-to-own the vehicle, which means at the end of the fixed period you may be capable of taking on the ownership of the truck.
Another option is to hire purchase the truck, that is an arrangement whereby you will shell out for the truck in monthly installments. The truck is owned by the lender (not a finance company), and you make regular payments for the property while retaining the rights to own and even use it for your business needs.
Which is a popular choices because repayment schedules are flexible, and even after the final payment is done, ownership is automatically transferred to you.
Lastly is the option of chattel mortgage, that is much like home mortgages in that you take on ownership of the truck while you buy it, and once the loan has been repaid the mortgage is waved off. This is similar to hire purchasing the truck, except that the title actually belongs to you as owner, and even mortgage contracts has a more complex fee structure. Balloon payments at the end of the term make this a popular option as well.
The different options you choose varies with respect to the circumstances and the requirements, and even what is preferable to you. Other than take the first agreement that you can find, it's prudent to talk with someone, just like a broker, who can analyze your situation and determine which method would be most cost-effective for your situation, and help you to tailor a loan plan which fits your present needs, objectives and even business plan.
