The trucking industry is booming in Australia. Estimates provided by the ATA (Australian Trucking Association), this industry employs more than seven million people and transports over 70 percent of freight in Australia including perishable drinks and foods, hospital supplies, construction material, medicines, and much more. Truck drivers require trucks to keep this vital industry rolling. However, trucks are quite expensive, and not all individuals may have the financial capability required to purchase them. The good news is that there are numerous options regarding commercial truck financing that charge low interest rates, helping those drivers to get the cash they require for purchasing trucks. The guidelines provided below will help you get the best truck financing available.
You need to remember that truck financing is different from getting loans for a personal vehicle. Loans for the latter will cost you interest rates of 5 percent, whereas truck loans carry an interest ranging from 5 to 30 percent. Forget about approaching banks, as they do not want to provide loans to the trucking industry because of its high failure rates. The good news is that there are many alternate lenders dedicated totally to truck financing. Finance for commercial trucks are available for:
• Purchasing a used or new truck
• Leasing a used or new truck
• Upgrading or repairing a truck an individual already owns
Let us check the requirements for obtaining truck financing. Unlike loans for business, the truck by itself serves as the collateral for the loan, as this minimizes the risk of the lender. Although the majority of applicants qualify for such loans, there are more variations around rates and terms. If you have a good credit score, you can easily qualify for total financing at interest rates as low as 5 percent. However, if you want financing for an old truck or have a bad credit score; be prepared to pay interest varying between 7 to 30%.