Worst Thing that Might Happen if You Will Not Pay Your Truck Loan

If you’re thinking about not paying your truck loan, there are a few things you should know.

First, your truck could be repossessed. This is probably the worst thing that could happen, as it would leave you without transportation and in a difficult financial situation.

Second, you will damage your credit score if you default on your loan, making it difficult to get financing in the future.

Finally, you may have to pay additional fees and interest if you miss payments on your loan. All of these things can be avoided if you simply make timely payments on your loan. So consider all the consequences before making a decision not to pay Your truck loan.

The lender could come and repossess your truck

Lending money to purchase something – such as a truck – puts you in a vulnerable position. You will make regular payments until the debt is paid, but if you finance the truck with someone else’s money and then are unable to make repayments on time, the lender could decide to step in and repossess your vehicle. While this can be an overwhelming possibility, it can be avoided with careful planning and timely payments. Make sure to stay aware of when payments are due and how much you owe so that you never have to worry about having your truck taken away from you.

You would lose the money you’ve already paid towards the loan

Taking out a loan is a big responsibility and you need to be certain that you are able to make those payments. If, for any reason, you can’t make the necessary payments, there will be consequences that could end up costing you more than if you had saved up the money instead. In most cases, when taking out a loan and defaulting on it, you would lose the money that you have already paid towards it so it’s important to think carefully before deciding whether this type of borrowing is right for you.

Your credit score would take a hit

A credit score is an essential factor impacting your ability to save money in the long term. When you’re planning out major investments and financing options, a drop in your credit score could put you at risk of not being able to secure more favorable conditions. Even if it isn’t a permanent strike against you, any decrease can still have repercussions that linger for years and should be avoided whenever possible. To do this, always make an effort to pay off loans and debts on time, keep your spending regulated, and try to dispute any negative changes on your report as soon as they arise. Taking steps like these means a drop in your credit score won’t limit your financial potential!

You might have to sell other possessions to make up for the missed payments

Depending on your financial situation, you may need to part with some of your possessions in order to make ends meet if you cannot cover missed payments. From clothing and furniture to cars, boats or even real estate, making a few sacrifices might be necessary in order to have a sound financial future. However, it’s important to remember that when selling these items you should try to get the best price available. If at all possible, avoid plunging into a financial crisis further by taking the initiative and doing the research needed in order to make the best decision with any sale.

You could end up in court over the debt

Going into truck loans without fully understanding the contract terms and eventuality of defaulting can land anyone in court. Often truck loans come with a range of interest rates and payment schemes, so it is important to understand these before signing the contract. Don’t get caught unprepared; ensure that you understand what could happen if you cannot pay, or if there are any other circumstances that arise where legal recourse may be necessary. Knowing your rights when it comes to truck loans can help keep you out of the courtroom and save you from incurring extra debt owed to legal fees.

The lender could garnish your wages

If you take out a loan and fail to pay back the loan on time, the lender could resort to garnishing your wages. This means that they will have the truck (or other vehicle belonging to you) seized and sold off in order to fulfill their compensation. It can be a stressful experience and one that should be taken very seriously. Borrowers are advised to always build an emergency fund in case of unexpected events, such as job loss or illness, taking away their ability to repay the loan on time. It’s best for everyone involved if borrowers take responsibility of their financial means and don’t rely on others taking money from them when it’s not necessary.

Not making truck loan payments has serious consequences that can ruin your finances and lifestyle. If you’re struggling to make payments, reach out to AGM Finance for help. Our truck loan experts can answer your questions and help you find a solution that works for you. Don’t wait until it’s too late – call us today!

Should You Sell Your Old Truck and Get a New One?

Is your old truck’s performance letting you down and affecting your work? Do you visit the workshop more often than you’d like? Maybe it’s about time to think about the real cost of hanging onto that old truck and decide if you should sell it and get a new one!

Letting go of your old truck might be hard, especially if it’s been searing you well for a number of years.. Saying goodbye to an old friend is never easy.

Perhaps it’s about time to part ways with the old truck and consider getting a new one.

There are several things that you may want to consider before deciding since it involves a pretty substantial amount of Investment.

Old Truck VS Brand New Truck

Old Truck

Even if you’ve taken good care of your new truck, it won’t remain new forever and as your truck age, its value decreases. The older it gets, the more frequent you need to maintain it.

Maintaining an old truck won’t just cost you money but will also cost you your time. You have to spend time driving your truck to repair shops and you have to go without it which means you will miss a day’s work or two depending on how long it will take to be repaired.

It’s a hassle! You’ll lose a day’s worth of income from that.

Keeping an old truck may save you a lot of money by not buying a new one but eventually, the money you saved from that will be spent on maintenance of your old truck.

While it seems financially practical to keep an old truck, it is not. Your maintenance bill may be filed up over time without you even realizing it.

Unlike if you buy a new truck where you are free from stress, and hassle, you also saved money and time in visiting a repair shop.

When to sell your Old Truck?

  • It needs repair every now and then
  • Warranty is mostly expired
  • The truck is slowing you down at work
  • The repair cost is becoming more expensive than the return performance of the truck at work
  • Old trucks do not have the safety features that exist with the new trucks
  • Buying a new truck is cheaper than the overall cost of repairing your old truck
  • Old trucks consume more gas
  • Expenses in operating a truck increases

Should You Sell Your Old Truck and Get a New One?

Buying a new truck could be more affordable than your frequent visit to repair shops with your old trucks. Plus, it comes with a warranty that could cover the unexpected repair cost for its first three years.

You won’t have to worry about spending a penny when there is an unexpected problem with your truck.

Purchasing a new truck means keeping you updated with the trends and having its latest technology, especially its safety features that old trucks do not have.

Therefore, the cost of maintaining a new truck is cheaper than maintaining an old truck.

Aside from its brand new feels, working with a new truck will make you feel motivated. Thus, you will be more effective and productive at work.

Operating an old truck will make you worried all the time about the truck breaking down versus operating a new truck that helps keep your mind at ease from unexpected problems making you work efficiently.

Buying a new Truck

  • It comes with a warranty and guarantees
  • It saves you time and money compared to old trucks coming back and forth to repair shops
  • Updated safety features and engineered for the safety of the truck operators and its passengers if there’s one
  • New trucks mean greater access to updated features from the manufacturer
  • It tends to have better fuel efficiency
  • It is easier to maintain a new truck than an old truck
  • Reliable
  • Durable

Purchasing a new truck requires a lot of cash and due to some budgetary reasons, it’s not as easy as it seems to buy a new one. Thus, finding a perfect financing firm for your budget need is important!

And if you are looking for a great deal of truck loans, we at AGMFinance are here to help.

We offer a truck, trailer, and equipment finance from 6.95%.

AGMFinance is a multi-award-winning truck loan company from 2015 up to the present. With hundreds of 5-star reviews from happy customers:

“Their rates are second to none!” -Cameron Jones (Director & CEO)
“A fleet of over 100+ trucks, the only broker we use.” – Raj Deol (Director & CEO)
“Finance was flawless…an absolute pleasure.” – John Golubovic (Director)
“A great deal with a can-do attitude.” – Robin Joseph (CEO)
“Most professional finance team you can find Australia wide.” – Terry Lef (Director)

Best Australia Brokerage to Help You Buy A Brand New Truck

AGMFinance is your go-to! They gained a reputation as one of Australia’s leading brokerage firms and received multiple awards for excellence.

AGMFinance provides low-cost financial solutions to clients across the country. We work with a broad range of clients from a variety of industries.

Our highly skilled team has more than 100 years of combined industry experience, making us the right people to tailor a financial solution to your unique needs.

Today, AGMFinance is a multi-award-winning firm helping thousands of Australians and is recognized as Australia’s leading truck and equipment finance specialist.

Call Us Today on 1300 664 687 for a great deal and fast approval!

Starting a Trucking Business in the Post COVID World

Apart from the many disruptions to our lives, COVID taught us many things. The Transport & logistics industry was tested in ways we’d never seen before. Truck drivers were stopped at borders, deliveries were delayed, store stock levels were dramatically impacted and consumers were left frustrated. On the upside, many came to realise just how important transport and truckers are to the world.

They deliver the critical goods that we need to the stores so that we can get them when needed. These essential workers put their lives on the line every day, not only in terms of road safety, but being exposed to COVID risks at every stage along the supply chain.

You may be wondering: is now the right time for you to be starting a truck business?

It certainly is so we’ve compiled some tips to help you get started.

Capital May Be Your Biggest Challenge When You Get Started

Though it is becoming easier to get loans now that things are opening back up, you may have a tough road ahead. In order to submit your new credit application you will need to have at least 2 years industry experience, a minimum of 20% cash deposit and a satisfactory credit file.

Shopping Around for Truck Finance Is a Must

With all of the banks & lenders competing for your business, all of the options can make shopping for the right truck loan time-consuming and confusing. Using an experienced truck loan broker will save you a lot of time and money. They are great at helping both individual & fleet owners find the right finance solution for both trucks and trailers.

It May Take Some Time to Find the Right Truck

With all manufacturers being affected by production and parts supply issues, the stock levels of new trucks has decreased dramatically. This has driven up demand and pricing of used trucks to unprecedented levels. You may have to widen your search well beyond your local area to find the right vehicle at a fair price.

It may also pay to approach other truck owners to see if they are interested in selling or know someone who is. Used truck dealers have staff on the phone all day searching for stock so use your personal network of contacts to see what you can find. The great thing about Australia is, we like to help a mate.

Take Your Time Hiring Drivers

If you’re not going to be a solo owner-operator, you’ll need to hire drivers.

Drivers are in short supply at the moment so you may need to advertise or ask around within industry circles. You may also consider approaching truck driving schools to recruit new drivers, or start approaching other drivers to see if they’re happy with their current company. As a smaller entity you can be more flexible so offering them more benefits may encourage more experienced drivers to work with you.

Make Sure That Preventative Maintenance Is Built-in to Your Business

It almost goes without saying but in this post-COVID climate, truck & fleet maintenance is essential to keep your truck business running.

With supply-chain issues affecting parts supply worldwide, preventative maintenance is key. Don’t wait for a breakdown as you may be off the road for a lot longer than you’re used to.

If you’re ready to get started. Talk to the team at AGM, their 25 years of experience in the trucking finance industry is widely respected. With 5 star ratings from hundreds of happy trucking clients and multiple awards from the industry, you’ll be in good hands and off to a great start with your trucking business.

Truck Purchases in the Time of COVID

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

Five Things to Consider Before Applying for Truck Finance

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.