How to Find Cheap Truck Loans in Australia

If you’ve been listening to or reading the latest commentary by the RBA or Reserve Bank of Australia, then you may have heard about the increase in interest rates for loans.

Unfortunately, this affects the interest rates of truck loans as well, which is a large setback for local businesses that needed to purchase vehicles for delivery and logistics. The sudden increase in interest rate from the RBA is also a sudden change for most of us since their last report stated that they only planned to increase interest rates come 2023 to 2024.

Despite being a year early, you’re not completely out of luck. There are different ways you can find cheap truck loans despite the increasing interest rates from banks and lenders.

Get a Loan ASAP

Interest rates haven’t officially increased yet until mid-year, somewhere this June. If you’re still reading this before that, then you still have the chance to look for a deal with a lower interest rate.

There are several types of truck loans you can get, but here are the main three to consider:

• Chattel Mortgage – When you purchase a truck with borrowed funds from a loan. The truck is used as collateral and confiscated back to the banks and lenders if you cannot pay the loan on time or can’t continue to pay for the loan.
• Hire Purchase Agreement – When you pay for a truck to borrow it from a lender until the truck is fully paid off. Once the loan is paid for, the ownership of the truck will move to you.
• Equipment Lease – When you pay a flat monthly fee to use the truck every month. The ownership will forever stay with the original truck owner, which can mean increased costs if you’ve paid enough money over years to pay off the cost of the truck.

There are different types of loans and they all have their benefits. You’ll have to first figure out what works best for you and then try to manipulate those loans to work in your favor. Remember, you can still haggle or request extra terms just to make the contract clearer and better for both parties.

Use Your Credit Profile

A pristine credit profile means that you’re a reliable, trustworthy, and punctual client. Individuals with a notable credit score or profile are likely to get lower interest rates and better terms on their contracts.

This is because the banks and lenders view you as a low-risk investment, meaning they trust that you’ll be timely with your payments and pay off everything without any hiccups. You can use this profile to leverage for a lower interest rate, even if it isn’t your credit profile.

As long as you have a friend or relative with a great credit score, you can ask them to vouch for you. But this will mean that the friend or relative will have their credit score at risk if you don’t make your payments in time.

Put Up Some Kind of Collateral

Collateral is another important factor for proving that you’re a low-risk client. This means putting up something in exchange for the loan, as a reassurance to the banks and lenders that you’ll pay the loan on time. Otherwise, the banks and lenders will take the collateral as their own.

A common example of this is houses and personal cars. Though you can also use other items, as long as they have a monetary value. As long as you can add some form of collateral to prove to the banks and lenders that you have something of equal value to your loan, you can request a lower interest rate.

Use a Truck Finance Broker

Brokers are a useful bunch if you want to look for specific deals, which in this case is a low-interest loan.

As truck finance brokers, Yakka Finance has been in the game for years and has connections to a lot of banks and lenders, so much so that we can bargain your interest rates and loan structure for you. We are accredited with over 60 banks and lenders, with both the major banks and second-tier lenders as well as a wide selection of non-bank lenders. If you want access to a wide range of specialist lenders contact Yakka Finance on 1300 842 911 to speak to one of our trusted truck finance brokers.

Summary – How to Find Cheap Truck Loans

Cheap truck loans used to be a commodity, but with the increasing interest rates from the RBA, truck buyers like yourselves are going to have to be much more creative with their haggling.

Lower your interest rates by putting up collateral, using a finance broker, and even leveraging your credit score to show banks and lenders that you’re a low-risk client.