Global businesses and industries are thriving in Australia and are on the verge of expansion. Enabling this possibility is the range of trucks and heavy vehicles transporting goods from one region to another. For a seamless integration of business requirements, no deposit truck finance is the need of the hour. This facility allows business owners to purchase trucks upfront without the need to pay any finance costs in advance. This is also the latest facility extended by financial institutions to businesses in Australia to go beyond boundaries. Truck finance without any deposit is available across a diverse range of new and used heavy vehicles spread across various brands and makes.
The types of no deposit truck financing loans
Prestigious lenders in Australia offer a no deposit finance on trucks via select lending products. One of the most common and the most popular is the Chattel Loan Mortgage. It’s very similar to home mortgage and Chattel stands for a personal possession. This means, your truck itself is used as a security against the loan offered by the lender. The Chattel Mortgage agreement allows you to take ownership of the truck and make monthly repayments as mentioned in the agreement.
Here are some standout benefits of Chattel Loan Mortgage:
- You can choose to pay a deposit to reduce the mortgage amount and lower monthly repayments
- The GST can be claimed on the forthcoming BAS lodged and can significantly benefit in case your business is GST registered
- You can consider the depreciation on the truck for tax deduction at the financial year-end
- This option is available for new and used trucks and heavy vehicles
- You can also claim the truck finance rate interest at the end of the year for tax deduction
- The financial model is suitable for businesses of various types, including self-employed truck owner-driver, SMEs, and truck fleet operators
- This financial product also has the benefit of using the balloon payment. It’s a certain percentage of the purchase price payable in full at the end of the loan term
Note that the purchase price of the vehicle, the dealer sale stamp, rego charges, and on-road costs are included when purchased through a dealer. However, if you purchase from a private seller or through auction, these charges are often excluded from the no deposit deal.
Leases on trucks are another popular method of no deposit truck financing. Fixed monthly repayments are made while the lender retains the ownership of the vehicle until the conclusion of the lease term. All payments also need to be made on time and a residual is applicable at the end of the lease.
No deposit conditions
The possibility of getting a no deposit truck loan financing depends on individual lenders and commercial vehicle loan organizations’ terms and conditions. The value of the commercial vehicle or the truck is often compared with total financial amount while determining no deposit loans. Most often, a dealer or an auction house may request a certain deposit amount while making a purchase. This is a separate entity and does not come under no deposit financing.
Customized or custom-built heavy vehicles built under a dealer’s supervision often requires a deposit amount. It’s a holding deposit that is returned during settlement when you opt for a no deposit deal. However, you can still negotiate with the seller and opt for a 100% no deposit loan. This, however, varies from lender to lender depending on their circumstances and other important factors.
The best you can do is personally get in touch with a reliable financial broker who will provide complete guidance on acquiring no deposit truck loans. Your business requirements with future plans and market conditions are considered to make a no deposit offer. A leading advantage is this facility is available on numerous types of trucks and models that make the purchase all the more easy with flexible payment options.
A no deposit truck finance is your gateway to financial freedom that also helps expand your business opportunities in a short span of time. The process is easy and effective and, immensely benefits new and seasoned industry players while saving an ample amount of time and money in the long run.