The coronavirus pandemic has bought plenty of changes to the world of trucking. From the type of haulage, how businesses operate, and the day-to-day working life of drivers—changes have been rife.

The ability to purchase new and used trucks and parts has also been impacted, but thankfully, AGM Finance can help customers navigate the purchasing process with ease.

Securing Heavy Vehicle & Truck Finance Amidst Covid

The usually reliable timeline for manufacturing trucks and heavy vehicles has been put out of kilter throughout the pandemic.

Ongoing staffing issues, material and shipping delays have contributed to significantly longer wait times for new vehicles and parts.

For those looking to expand their fleet or replace old vehicles, this delay can be troubling from an operational point of view but can also present headaches when securing finance.

Loan Approval

Typically, a finance approval for a new truck or heavy vehicle purchase is valid for around three months.

Currently, some trucking businesses are waiting up to a year to receive their new purchase, meaning their finance application is expiring several times within the waiting period.

Without the help of a finance broker, a purchaser needs to apply for the same loan repeatedly.

To simplify the process and allow our clients to focus on the day-to-day operation of their business, the highly skilled team at AGM can manage your finance application from start to finish, including renewals.

We work closely with our lenders and the vehicle dealerships, ensuring you don’t need to double-handle or worry about anything.

Fast Loan Approval- Try Secondhand

For businesses that can’t wait for a new purchase to arrive in Australia, the secondhand marketplace is your best opportunity to secure vital vehicles and equipment.

Increased demand for used vehicles is pushing up prices — a great benefit if you’re looking to sell, but it’s making the marketplace competitive for buyers.

Securing pre-approved finance can help you snap up a truck or part without delay, though not every lender will finance older trucks.

The major four banks in Australia apply age restrictions to finance applications for trucks and heavy vehicles.

Those restrictions push customers into purchasing new or near-new trucks, but it doesn’t have to be that way.

With access to over 40 different lenders, the team at AGM specialises in used purchases and secure the right finance deal for your next purchase, regardless of age.

With a loan approval success rate of 98 percent, we can provide finance for trucks up to 25-years-old and trailers up to 30-years-old.

Team of Finance Specialists

To received tailored finance solutions for your next purchase, contact our team of finance specialists today.

They can provide you with an obligation-free quote and walk you through the entire purchasing process. Call 1300 664 687 or email: website@agmfinance.com.au

Investing in a new truck or equipment is a big decision requiring some forward planning, consultation and research for the right truck finance.

The wrong choice can be financially draining to your business, impact future contracts, and damage employee engagement — after all, having the right tool for the job makes a huge difference to those using it day-to-day.

Avoid common pitfalls by following these five steps.

1. Do You Need the Equipment or Heavy Vehicle You’re Looking to Purchase?

While this question might seem obvious, it’s surprising how frequently businesses invest in new equipment or technology that doesn’t actually fit their needs.

Answering the question of ‘need’ requires a two-pronged approach.

Firstly, you need to assess whether you have (enough) work lined up for it.

Simply put: will the income generated or time saved by purchasing the additional equipment be greater than the cost of repaying and maintaining it?

Secondly, you need to confirm whether the equipment is the right age and type for your intended use (see below).

2. Are You Purchasing the Right Equipment For the Task and Your Future Clients?

To work with any business, you must sign a contract outlining any terms and conditions.

In the world of heavy vehicles and equipment, it’s common to see contract requirements concerning the age of vehicles permitted onto job sites.

Before investing in a new truck or equipment, be sure you know the fleet requirements of your major clients as well as any you hope to work with down the track.

Then, it would help if you considered whether the equipment is suited to the job.

Think horsepower, size, body type, safety specs and more.

Taking the time to assess the capabilities of your future purchase and how your clients will regard it can save plenty of headaches in the long term.

3. Do You Have Good Credit?

Without a good credit history, securing finance can be either very expensive or impossible, especially if you’re applying for a loan without expert advice from a finance broker.

Our highly skilled brokers at AGM Finance ensure we have all the facts before we submit any applications, ensuring there are no unnecessary delays.

By securing a copy of your credit file, we can determine your financial eligibility and decide the best course of action for you and your business, as well as your next acquisition.

4. What Sort of Loan is Right For Your Needs?

Choosing the right type of finance is as important as selecting the right truck or equipment.

To determine the best loan type, you need to if you want to own your new acquisition outright at the end of the loan or pay a balloon payment.

The determining factors for this decision will be how long you want to own the vehicle or equipment, and how you want to structure your cash flow.

If you intend on retaining your truck or equipment for a long time, a long-term loan with a balloon payment can be more suitable.

Short-term equipment purchases may be better off with a shorter loan demanding higher monthly repayments and no exiting balloon payments.

To decide the best loan type for your business, always seek expert advice from your financial advisor or accountant.

5. Utilise the Buying Power of Financial Brokers to Secure the Best Finance Deal.

You may assume it doesn’t make much difference whether you apply for a loan in person or use a finance broker.

The truth is, individual loan applications will never have the buying power of a broker, and you run the risk of missing opportunities should your self-submitted finance application be unsuccessful.

At AGM, we have a 98 percent success rate for loan approvals and access to over 40 different lenders.

Meaning, we can guide you through your finance opportunities to ensure the best possible outcome.

To get started, call our award-winning finance experts today about your new heavy vehicle or equipment purchase. Call 1300 664 687 now.

Whether you’re reasonably new to the trucking industry, or you’re a seasoned veteran with an already impressive fleet; every business reaches a point where expansion is necessary.

If you are considering expanding your trucking fleet now, or in the not too distant future, there are certain things you should consider first to ensure the process is smooth.

Finance Options

When it comes to selecting the right truck finance option for you and your business, our highly skilled team of experts can provide advice specific to your circumstances and guide you through the entire process.

In essence, they will be helping you through one of two options: low document (doc) finance , or a full document finance application.

Here’s the difference.

A low doc application requires no proof of financials, but you must have a GST registered ABN that has been active for a minimum of two years, a good credit record and property assets to back you.

In the absence of property, you will need to provide a 20 per cent deposit.

One of the significant advantages to a low doc application is the turn around time.

Because of our excellent business relationships with more than 40 different Australian lenders, we aim to provide our clients with low doc finance results in only 24 hours.

A self-managed low doc application would have wait times of up to two weeks.

Alternatively, a full documented finance application might be your best opportunity to secure low-rate finance.

However, to make the application process smooth, our finance team can assemble your application and step you through the process while ensuring you don’t hit any lender exposure limits.

Meaning, we will ensure your loans are dispersed through multiple lenders to allow for maximum finance opportunities, avoiding any exposure limitations imposed by individual lenders.

Timing

Being under-resourced and having to turn down opportunities or retire some of your fleet before sourcing a replacement are not ideal situations for any business.

To avoid short-changing your business and missing out on opportunities, be on the front foot with your finance application.

Depending on your unique circumstances, this may mean seeking finance pre-approval to ensure you are prepared when the right truck or trailer becomes available.

Or, it could mean taking advantage of generous tax incentives currently available to Australian businesses.

Until June 30, 2021, the Australian government has provided unprecedented incentives designed to stimulate the economy: Australian businesses can instantly write off new or used asset purchases to the value of $150,000.

If you were planning on purchasing a truck or equipment later this calendar year, seek financial advice from your tax accountant to determine whether it’s beneficial to bring this purchase forward.

You might be surprised at just how much you could save.

Type of Equipment

Because of our long and established history with more than 40 different lenders, we can provide finance options for trucks, trailers or equipment of any age while still ensuring the best possible rate.

Having this option to purchase both new or used means you don’t have to be limited and can instead focus on getting the right equipment for your business at the right time, allowing you to meet the needs of your customers, now.

Contact our team today for more information on how you can expand your trucking fleet; call 1300 664 687.