Have you ever wondered what are the benefits of getting a truck loan? There are actually numerous advantages to doing so, and they do not all apply to new trucks. Keep reading to learn 6 such benefits so you can know if this financial decision is potentially a smart one for you and your personal circumstances.
1) You can afford far more truck than you could possibly hope to buy right now. New vehicles often cost in excess of ten to twenty thousand dollars, so financing one with a truck loan makes it possible to pay for the vehicle in installments, typically monthly. This would be in contrast to paying for it all up front. Otherwise, you would just have to go for whatever used truck you could afford at the time.
2) You save money when you buy newer. Since a truck loan lets you buy something new or at least not too old, it is not going to break down on you, need as much maintenance, or need too many repairs. It is still kind of true that a brand new truck might depreciate ten to twenty percent very quickly, so the sweet spot seems to be buying something that is just over a year or two old with relatively low mileage. Models that are being circulated out of use from rental car fleets are often steals considering how well they are taken care of.
3) You keep saving the money you were saving up for a new truck. If you have been planning on a new or new to you truck for a while, you might have been saving up money for it. If your truck loan is enough to cover the purchase of the vehicle, or even most of it, then your funds can stay in your bank account as a savings fund for emergencies or other sudden expenses.
4) A truck loan can possibly mean lower monthly payments. Even if you have a current truck loan, you might be able to restructure or refinance it to take advantage of lower interest rates. Also, if you have driven the truck for at least six months, you might be able to refinance your original five or six-year loan into a new one of the same length. It extends how long you’ll pay the loan into the future another six months, but it also significantly decreases your monthly payments, saving you money that invested properly will earn more interest than your loan might charge you.
5) The right truck loan can mean possibly starting your own business. Having a reliable and sized truck is a necessity for a number of professional opportunities, whether it be delivering newspapers and parcels or working as an independent plumber or contractor. You might even work with another individual offering your services to help people, families, and offices move furniture and other bulky items. Check out local companies like Alpha390, they do some things well but I’m sure there’ll be other companies that might have a better solution for you. You can find out more information at https://alpha390.com.au/truck-finance-and-truck-loans/.
6) You can build your credit report and ratings up. Truck loan payments are going to be among your larger monthly obligations, probably only second to your mortgage or rent. Making these payments in full and on time shows up on your credit reports and looks very good in terms of establishing you as a responsible, reliable, and credit-worthy individual. Even if you don’t like your current truck loan interest rates, six months to two years of full payments on time opens up the possibility of refinancing lower rates.
Now that you know the 6 primary benefits of truck loans/truck finance, you can review your local options and see if any of them are right for you.