Is it time to trade in your old truck for a new one? Or maybe you want to increase your fleet? Buying a heavy-duty truck represents a considerable investment. So before you start looking for what’s right for you, it’s important to make sure you know what types of financing are available to you. Whether you’re looking to buy a semi-truck or another heavy-duty truck, there’s a solution to meet your needs. Read on to learn about three heavy-duty truck financing options.
Leasing: capital lease for financing a heavy truck
Capital lease financing is used on a medium-term basis. With this solution, the financing company acquires the equipment or heavy truck and then leases it back to you. With this option, the lessor gives up virtually all rights of acquisition associated with the asset. At the end of the lease, you can purchase the vehicle at a specified date and price or extend your lease agreement. A capital lease allows you to conserve cash and deduct your monthly payments from your taxes. And the terms of a capital lease are flexible. You can choose between a fixed or variable rate.
Heavy Truck Financing with an Operating Lease
Operating lease is another solution for financing a heavy truck. Under this type of contract, the company leasing the vehicle to you remains the owner of the asset. At the end of your agreement, you can return it without any obligation on your part. If you wish, you can still purchase the heavy truck at its fair market value.
Conditional sales contract
A conditional sales contract (CSC) is a method of financing that is very useful and advantageous when the time comes to purchase new equipment. The property of the good that will be sold is immediately transferred to the buyer. However, there is a future commitment in the contract that both parties must respect. It is important to note that all taxes related to the sale of the property are payable at the same time as the transaction. This type of option offers competitive fixed rates that can be difficult to find elsewhere. For more information, don’t hesitate to contact our team of experts!
Whether you want to buy a heavy truck or a trailer, before making your choice, consider talking to a broker. He or she can help you select the heavy truck financing option that’s best for you. And having a pre-approval will make shopping for a truck easier. Contact an Affiliated Financial Services broker today for more information or to apply for financing.
