Whether you are starting a trucking business or expanding an existing business, buying a truck is a big purchase decision that needs a couple of essential factors to consider. For example, how much should you push your budget, and what will be the operating costs, tax policies & finance policies to know, especially if you are looking for a truck loan with bad credit?
Points to Get You on the Road to Success
- Your Budget
First and foremost, you need to have a realistic idea of how much you are willing to spend on a truck. It will help you determine the type of truck you can afford as well as the features that are important to you. Sketch out a commercial vehicle budget that includes operational costs as well. Since the price of a vehicle doesn’t account for just purchase, you’ll also need to calculate the ongoing operating expenses like insurance, registration, repairs and fuel/gas charges.
- Finance Options
Once you are done weighing up the budget, the next step is to finance it! This may include a loan, leasing or renting. In most cases, financing solutions can be directly approached by the dealership. But it is recommended to consider a background search of the firm before you finalise if you don’t want to end up in a pinch later.
A few points to consider:
- Check for foreclosure or pre-payment options
- Availability of the truck loan with bad credit
- Affordable EMI
- Compare loans available in market
You have to choose which of them can provide a competitive rate and favourable schedules.
3. Personal Name or Business Name
Business vs. personal might seem trivial, but many prefer taking a loan in their name rather than a company’s as the follow-up process becomes slightly more accessible.
Although it’s a personal choice, it is recommended to take credit on your company’s name as it helps increase the business’s creditworthiness. It also helps to deduct a lot of taxes. You can go through the ATO Tax deduction tab to understand it further.
4. Ease of Maintenance
Maintenance is a key factor when buying a commercial vehicle. Not only does it affect the truck’s performance, but it can also be costly if not done regularly. Make sure to ask the dealership about the maintenance schedule and what the cost of repairs would be. Also, find out if there is a service centre on your frequent routes in case of emergencies.
5. Safety Features
Safety should always be a priority, primarily when operating a commercial vehicle. Ensure the truck you are considering has all the necessary safety features and latest technology, such as airbags, ABS brakes, GPS and seatbelt alert.
6. Insurance
Commercial vehicles are essential investments. In Australia, all commercial vehicles must have compulsory third-party (CTP) insurance. This insurance covers injuries to other people in the event of an accident. It is important to check with your insurer about what is included in your policy and what is not. For example, some policies may not cover damage to the truck caused by accident.
Following these tips can avoid making the same mistakes as many others do when purchasing commercial vehicles. Doing this correctly will greatly impact your business’s budget, so be sure to take your time. And if you ever feel lost, don’t hesitate to ask for help from an expert. Happy Trucking!
Author Name- Carmela Castillo
