In many countries around the world, the trucking industry plays a major role in driving the economy. There are thousands and thousands of people currently working in the trucking industry in Australia, which means the demand for quality trucks to support these needs is important. But trucks are expensive. So how is this gap bridged? There are plenty of companies that offer truck loans to support truck drivers and trucking companies in Australia.
The problem here is that not many truck owners and operators know the ins and outs of truck loans and financing but worry not; we’re here to help.
What You Should Know About Truck Loans And Financing
How Do Truck Loans Work?
As you can imagine, there’s a difference between personal car and truck loans. And as much as you’d like to rush to a bank for a truck loan, many banks don’t offer this service.
Truck loan lenders are available and offer second-hand or new truck loans that can be leased at affordable rates with payment options open to your ability to pay back.
How Is Eligibility Determined?
For the loan you take, the truck serves as collateral. Therefore you will need to establish what type of truck you’re willing to loan or end up buying prior to approaching a financing or truck loan company.
Will My Credit Score Affect Truck Loan Options?
There are instances where truck loans are possible even with a poor credit score. However, this will be an uphill battle. In cases where a lender is able to provide a truck loan regardless of your credit score, a poor score will affect your payments. You will need to pay more to curb the risks involved with your loan – as you are now seen as a high-risk investment.
On the other hand, your truck will be held as collateral, which means once your truck loan is secured and you’re unable to make payments, your lender can seize your truck and sell it to cover their investment.
With this being said, it is a better option to ensure you build your credit score until it is healthy enough for you to take up a truck loan. A lower interest rate is often the reward for qualifying for a truck loan with a healthy credit score.
For more information on truck loans and how ZEP Finance can assist you, call our friendly consultants; we’re more than happy to assist you.