Truck financing

 

As a transport company, it is crucial to keep the vehicle fleet up to date. Increasing safety requirements, new models and the growing need for truck transportation ensure that truck financing will become necessary sooner or later. We inform you about what options you have and what you should pay attention to.

Basis: these options are available to you as an entrepreneur

When it comes to truck financing, companies have a choice of three paths, all of which have different advantages and disadvantages. The most important criteria to consider when making your decision include: expected wear and tear, monthly budget, and the need for innovation. Rates and additional information can be found here.

Classic loan: the bedrock of truck financing

With a classic loan, the purchase price of the truck is spread over several years and paid back to the seller in monthly or annual installments, plus interest in each case. The advantage of a loan is that you become the owner of the truck at the end of the term (when the last installment is paid). However, this form of financing also brings with it a decisive disadvantage: due to the fixed contract commitment over several years, a large part of the spontaneity is lost. So you can not react to short-term changes. If you no longer need the financed truck, for example, you still have to continue paying off the company loan to the bank. This makes it unattractive for most transportation entrepreneurs.

The lease-purchase: combine the advantages of loans and cash purchase

With the conclusion of a hire-purchase agreement, you initially commit yourself to renting the truck for a certain minimum period (for example, two years). Once this phase has expired, you have the option of leasing the commercial vehicles such as vans and co. To buy. If you decide for this option, the rentals paid so far will be credited to the purchase price. If you decide not to buy, you can either continue to rent the truck or return it to the seller. If you decide to return the vehicle, it depends on the contractually agreed residual value of the vehicle. If the actual value is the same as in the contract, you will not incur any further costs. If, on the other hand, the truck is excessively worn or has other damage, you or your insurance company will have to pay for the difference.

Company or commercial leasing: the best solution for entrepreneurs

Business or corporate leasing is one of the most popular solutions for transport companies. In this form of truck financing, you also enter into a lease agreement with the seller or even manufacturer of the vehicle. You pay a monthly installment and are allowed to use the truck in return – in addition, you can deduct the installments as business expenses from your taxes. This also applies to the self-employed. Crucial in leasing is that you enjoy maximum flexibility when you return the truck. If you no longer need the current model or want to expand, simply exchange it for the successor or another vehicle. When you enter into the lease agreement, you specify the annual mileage. The amount of the installment depends on this. If the actual mileage at the time of return corresponds to the agreed mileage, you do not have to make additional payments. If it is above that, compensation per kilometer driven is due – and the other way around: if the truck was used less than agreed, you get part of your installments back. You will find numerous favorable offers off- and online. Practically every manufacturer, including mercedes-benz, allows you to finance your vehicles through leasing.