Truck Finance Options
In Australia there are 3 main truck finance options available for individuals that want to purchase these types of assets, but may require the financial support from a lender to do so. These options are readily available when approaching most banks and with the help of a truck finance broker; the entire process can be made all the easier, what with options to find affordable deals with minimal interest.
Here’s a closer look at the 3 individual options available to those looking for truck financing.
A commercial hire purchase loan
Sometimes shortened to CHP, this type of financing option can be a helpful way to enjoy access to a truck or similar vehicle; without having to cover the initial expense. In the majority of cases a lender will purchase the truck on behalf of the borrower. They will then rent or lease the use of the truck back to the borrower in exchange for repayments amounting to the total cost of the truck, with interest. Once the entire sum has been paid off by the end of the repayment term – the truck will then become the property of the borrower.
Chattel loan/ mortgage
For those that would prefer to own their truck outright from the offset, a chattel mortgage can be ideal. This financing option allows a borrower to receive the full cost of their loan from their lender – and this amount will need to be put toward the value of the truck in its entirety. Papers will then be issued that state that the borrower will remain the sole owner of the truck and its features; as long as they repay what is owed within the pre-agreed upon time frame. The lender will take out a mortgage on the truck to secure their loan and if the borrower doesn’t repay, the truck will be seized.
A lease for truck assets
This type of loan is one of the most diverse, as it can allow a borrower to enjoy full use of the truck for as long as they need it. The lender will purchase the truck in its entirety and retain ownership of it. And then under a monthly agreement, the truck can be leased out to the borrower who will pay back a pre-defined sum with interest every 4 weeks. Once the term comes to an end, the borrower can either re-finance to continue using the truck, pay off the residual sum to purchase it outright, or allow the lender to sell it to cover their expenditure.
Truck financing is not our only offering, see what equipment financing options we have available.