Used Truck Financing
Here in ASA, we make it easy for clients to understand what benefits they can expect from purchasing a used truck, and how to work through any finance difficulties. In this article, we will help outline when to lease and/or when to buy a second-hand truck. We’ll also discuss how your business can protect its new asset.
Before we get started, it’s always recommended you assess your current financial situation before deciding to spend larges amount of money. We recommend discussing the proposed used truck purchase with your accountant to ensure the transaction is viable for your business.
Furthermore, there are both positive and negative sides to investing in a new and/or used truck(s), and it is important to understand and consider both aspects before buying. There is no worse feeling than making an investment, and then later realize there was another option you should have went with instead, so familiarize yourself with the options before making a choice.
Is it recommended to buy used or new trucks?
The immediate benefits of buying a used truck is that the price of a used truck is significantly lower than that of a new. Additionally, the price for getting your used truck insured will also be cheaper, which makes for quite the cut on initial costs in total. Despite this, there are also risks related to cost that are associated with buying secondhand vehicles in general. These are often related to maintenance costs, with aspects such as warranty not being in the picture. These expenses usually come from dealing with a vehicle with older parts, which in turn is likely to lead to more visits to the mechanic, and, thus more money spent on maintenance. To avoid this, it is crucial to do your research on the truck, to find out as much as you can about its history. On the other hand, buying a new truck is more of an immediate investment, but can pay off over time. With a new truck, you are in full control over the vehicle’s history, with the additional factor of warranty, covering all sorts of damages and issues for an extensive period. Additionally, newer technologies have provided trucks with fuel-efficient engines, and new aerodynamical design, which can save you money on fuel over time. Despite this, newer trucks are often significantly higher in price than used ones and will depreciate as soon as it is taken on the road, which can be a problem in the case of wanting to change your business or career.
So, what should you do?
Depending on your financial situation, buying a used truck is maybe just what you need. If you are on the lower end of the financial scale, you will need to keep the initial costs cut, so you have some money to work with on the side – not putting all your eggs in one basket. It takes away the element of depreciation costs, relieving you of the pain associated with leaving the dealership knowing your truck just lost a good fraction of its value, and provides you with more financial freedom. Furthermore, having a used truck with some money on the side is, in our opinion, better than having a brand-new truck and no money on the side.
If you do have the funds to spend on a new vehicle, and are certain you will stay in the business, then we recommend buying a new one. Provided you take good care of it, it will be a loyal companion for years to come.
What type of truck should you look at?
In trying to decide for a truck that you want to purchase, either new or secondhand, there are a couple of steps you should go through beforehand. First, decide on what budget you have set for the purchase. This will help you in seeing what different brands you can choose between in your price range, while also filtering down your options. Second, think of what kind of terrain your truck will be driving on – will it be mostly dirt or pavement? By setting your requirements for the truck it will be easier to make a choice when browsing the web, as you will have an idea of what you are looking for. Third, if you are looking for a used truck, talk to the owner about service papers to see that the truck has been maintained and has no issues with it. Avoid buying a truck that has been known for having engine-problems for example. When you have found what you’re looking for, make sure to go see the truck in person and check that it suits your every need.
Should you finance your truck?
To answer this question properly, you should investigate your current financial status and think about whether you can afford buying yourself a truck directly and still maintain a strong business capital. If the answer is ‘yes’, then you should probably go buy a truck and make a day of it! If the answer is ‘maybe’ or ‘no’, then we are here to help you.
Choosing the right kind of finance, one that is suited to your business and industry, will help you out in ensuring that day-to-day priorities can still be met without the worry of running out of funds. Vehicle finance will, in the same way as buying directly, give you the acquisition of the vehicle and provide you with the opportunity to put it into income-producing work at once. Additionally, you also get the ability to choose how your outgoings are going to be managed through a scheduled payment plan, which will enable you with the benefit of adjusting outgoings around your flow of income.
We are the experts for all used and new truck finance needs
ASA have been in the truck finance business for over 15 years, with extensive knowledge about every aspect that should be taken into consideration when looking to finance a new or used truck. Our understanding of the industry has allowed us to provide clients with competitive finance and cash flow solutions that best suit the clients’ needs, which in turn has made us the first point of calls for businesses looking for financing. If you have any enquiries about finance solutions or any truck- or heavy equipment related questions, call us today and talk to us about what we think will be the right choice for you!
We have extensive knowledge and options for all different types of trucks, including:
- Prime Mover
- Tow Trucks
- Concrete Pump
- Crane Truck
- Livestock Truck
- Pantec Truck
- Refrigerated Truck
- Tilt Tray Truck
- Water Truck