Whether you’re a small business owner purchasing your first truck, or looking to expand your fleet, deciding between financing and buying outright can take time and effort. Many buyers have financial questions about how to purchase a truck that suits them and their business needs. Do I pay for this with cash, or do I finance?
In this blog, we'll lift the bonnet on truck financing and look at the benefits and options available, to make sure you know the possibilities before making a decision for your business.
The right kind of finance, when specially tailored to your business needs, can offer a number of important benefits, typically the complete flexibility and freedom to ensure that day-to-day operating priorities are met without the hindrance of cash shortfalls.
Below are some additional Financing Benefits:
- Conserve Business Capital - Vehicle finance can remove the need to dip into capital and cash reserves. When you’re buying a business vehicle, the second it lands on a job, it is making you money. Your truck can make more than its repayments simply by being on the road, putting you in a positive position from day one.
- Fixed Repayment Structure - You will be able to select the term of your finance, the deposit you want to pay and fix the interest so you know exactly what your vehicle outgoings will be.
- Potential Tax Deductions - Financing often comes with potential tax advantages. Depending on the type of financing agreement you choose, you may be eligible to claim tax deductions for interest expenses, depreciation, and other related costs (be sure to check with your tax consultant).
- Cash flow management - There is no arguing that effective, well managed cash flow is a priority for any successful business. You may be able to structure your outgoings in a way that reduces their impact by spreading out payments on, say, a weekly, fortnightly or monthly basis, depending on your needs.
Finance Options Available
Under the Hino Advantage Business Solutions umbrella falls Hino Financial Services - tailor-made finance and vehicle loans to help your business grow. You can tailor the whole experience to suit your business, from choosing a vehicle, choosing your loan term, whether you want a balloon payment or not and choosing your insurance and repayment type.
Hino Financial Services has just what you need to keep your wheels turning smoothly. Below we explain the most common types of finance options available.
- Business Vehicle Loan/ Chattel Mortgage
A business vehicle loan or chattel mortgage is where the legal ownership lies with the customer. It is similar to a traditional mortgage or home loan. A financier takes a mortgage (security interest) over the chattel (goods). No GST applies to interest and term charges. Like term purchasing, you can claim depreciation and interest for business usage.
- Complete Lease
With an operating lease, Toyota Fleet Management owns the vehicle and leases it to you with your choice of term and kilometre usage. At the end of the term, the vehicle is returned, avoiding the risks associated with ownership, as there is no residual value to pay.
- Finance Lease
A finance lease transfers the risk of ownership to you without transferring legal ownership. You choose a residual value within the ATO's specified range to suit you. A finance lease gives you 100% financing at a known monthly cost with no capital outlay. Lease rentals are usually fully tax-deductible and treated as lease repayments and interest. At the end of the lease, you can extend for an additional term or pay out the lease and then enter into a new lease agreement on another vehicle.
Our Adtrans Hino Finance Calculator is designed to allow you to adjust the asset cost, interest rate, loan term, deposit, and balloon payment to estimate the finance repayments of your Hino truck. So, play around to see if Hino Finance is right for you. Keep in mind that your actual interest rate and repayments will depend on Hino Financial Services' assessment of your finance application, so don’t hesitate to contact us.
When it comes to your industry, your priorities, and the financial solutions that can propel your business forward, you deserve a team that truly gets it. The team at Hino Financial Services not only understands your specific needs but also speaks the language of Hino trucks like no other.
Whether you're looking to finance a single vehicle or an entire fleet, Hino Financial Services has got you covered with a diverse range of flexible options.
To discuss what finance options best suit your business, visit our dealerships or call 02 4648 8800 (Smeaton Grange) or 02 9598 9444 (Marrickville).
Approved applicants only. Terms, conditions, fees and charges apply. A minimum loan term of 12 months applies. The maximum loan term will vary depending on the finance product selected and will be subject to Toyota Finance policy and procedure. You may be required to pay a deposit for capacity reasons. Additional interest charges will accrue if you select a balloon final payment option and early termination fees may apply if you elect to make additional repayments during the loan term. Hino Financial Services is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.
The information on this website is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.