Trucks, trailers, or other commercial vehicles are important business assets required in normal business operations. As a business owner, you are constantly faced with several critical decisions whereby you must decide what is best for your business. So, if you are a business owner, you should carefully consider several important factors when it is time to get a new truck, trailer, or any other commercial vehicle, such as having:
The right truck that will help to keep your business competitive
The right truck for the work required and at the right price
The right financial arrangement to buy a truck
Different Types of Trucks, Trailers, or Commercial Vehicles
Business owners can purchase any of the following vehicles:
New Truck
Refrigerated Lorry
Trailer
Tipper, or
Transporter (light or heavy)
Factors to consider before buying a New Truck, Trailer, or Commercial Vehicle
There are several factors you should take time to consider when purchasing a vehicle, and you should ask yourself the following questions:
Read more:
- What Brexit means for your finances: Savings that can be made – and steps you can take to protect the family finances
- Purchase Order & Letter of Credit Financing
- The Best Options for Your Caravan Finance
- 5 Ways and Steps to Improve Your E-Commerce Business Through FINANCING
- Creating a Performance Culture in Sports and Business through Trophies and Recognition
Is the truck, trailer, or commercial vehicle new or used?
Is the truck, trailer, or commercial vehicle coming from a dealer, auction, or private sale?
Has the truck, trailer, or commercial vehicle been previously written off?
How many hours has the truck recorded?
Is any money owed on the truck, trailer, or commercial vehicle?
Are you considering drawing down from your home loan (e.g., equity release) to give you the required cash to buy your truck, trailer, or commercial vehicle?
Finance Arrangement
Here is a summary of the types of finance arrangements available in the marketplace. After you have read this article, you should find choosing the right finance arrangement to be the simplest decision you will make:
Finance Lease – This financing arrangement enables you (the customer) to use your truck, trailer, or any other commercial vehicle and the benefits of ownership. At the same time, the financier (lender) retains actual ownership. The finance lease arrangement will also enable you to free up your capital for other business purposes.
Commercial Hire Purchase – This financing arrangement is where you (the customer) hire the truck, trailer, or other commercial vehicles from the financier (lender). You have the certainty of a fixed interest rate over a set period (I.e., 2 to 5 years) and the flexibility of reduced monthly payments by including a final “balloon” payment at the end of the term.
Asset Loan – This financing arrangement gives you (the customer) the security of knowing that your truck, trailer, or any other commercial vehicle is an asset of your business, and it offers you the certainty of a fixed interest rate over the choice of loan terms (I.e., 1 to 5 years).
Seek Expert Advice
I sincerely recommend that you seek expert advice before choosing any truck finance arrangements because your taxation and accounting treatments may vary from option to option.
If you want to remain in the driver’s seat and concentrate on running your business so that you can cover your costs, overheads, and running expenses, then look no further and take advantage of professionally qualified and specialized finance brokers because:
They have a thorough knowledge of the finance and trucking industry.
They have access to many lenders/credit providers as they deal with them daily.
They can customize the best truck finance arrangement for you.
They can get you into a new truck quickly and easily.
So, if you don’t want to spend hours trying to find the right truck finance arrangement, let a specialized and professionally qualified finance broker do the running around for you.
