A truck Loan, or more specifically a secured Truck Loan, is a type of loan where the financier lends money for the purchase of a vehicle and also takes security over the vehicle to protect the loan. Under a Truck Loan agreement, the financier advances funds to the customer to purchase a Truck.
The customer takes ownership of the vehicle at the time of purchase, and the financier takes an interest in the vehicle as security for the loan.
Once the contract is completed, the financier lifts their interest in the vehicle, giving the customer clear title.
The benefits of a Truck loan are:
1. Flexible contract terms ranging from two to seven years
2. A balloon value can be applied to the contract enabling the monthly repayments to be tailored to a budget
3. Choice of fixed or variable interest rates
4. Deposit (either cash or trade-in) may be used
5. A tax deduction is available when the vehicle is used for business purposes (speak to your accountant)
6. The loan is secured against the vehicle, allowing lower interest rates
A Truck Loan is suitable for individuals or businesses who wish to purchase a late model Truck and do not have significant business use of their vehicle or the option of a Novated Lease. If you are considering a Loan you may also want to take a look at a Novated Lease or a Personal Loan, depending on your circumstances
Contact us now, so that we can help you get the finance you deserve.