Rent to Own Trucks

Rent to own truck agreements are a way to buy vehicles if you’re a new-start business or have a poorer credit history

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Rent to Own Trucks

Rent to Own Truck Finance for New Businesses and Credit-poor Traders

Starting a business can be a catch-22 situation. It’s hard work – you can’t build a good business credit history without taking on some credit, and you can’t take on some credit without having a good business credit history. Sound familiar? There’s a good chance it does because it’s a familiar problem that affects thousands of Australians each year. Here at Savvy, we help Australian businesses navigate the tricky path to funding assets and vehicles. We offer a range of rent to own truck lenders, and we can help you get on the road to success. Rent to own truck agreements give you the option to reassess your situation as you grow. You can opt to buy, return, or extend the finance when that suits. Not only that, but each payment you make goes toward the purchase price if you do buy, so it’s less wasteful than renting.

More Rent to Own Truck Lenders, More Choice, More Success Stories

We hear you. Trying to arrange cost-effective truck finance when you’re just starting a business or have had past credit problems can be infuriating, time-consuming, and frustrating. That goes especially for when you’ve got contracts lined up and the potential for good revenue, but the banks and traditional lenders all say no. At Savvy, one of our missions is to make affordable commercial finance available to as many Australian businesses as possible. We’re a broker, so we have the freedom to partner with dozens of specialist lenders who offer a wider choice of products and solutions than banks. That means we can put more options in front of you and scan the whole marketplace, so you’re not wasting valuable time applying with commercial financiers who are never going to approve your application in a million years.

How do rent to own trucks work?

Rent to own trucks are relatively simple and easy to arrange. Your lender will purchase a truck and then rent it back to you, as per a signed agreement for a set period of time. You get exclusive use of the vehicle, just as you would with a more expensive traditional vehicle rental agreement. During that time, you’ll be responsible for any operating costs, maintenance, and servicing.

You pay a fixed amount each month for the duration of the rent to own agreement, and at the end of the term, you can either return the truck or negotiate to buy it. If you do opt to become the truck’s owner, each repayment you made during the rental agreement will have earned you some equity in the vehicle, so you’ll be paying less than if you bought the truck at the start.

In terms of tax, your monthly payments get classed as an operating expense throughout the rental term, so they’re fully tax-deductible. You pay GST on each rent to own payment, so you can claim them as you go along via your business activity statements.

What can I buy with Rent to Own Truck Finance?

Savvy partners with rent to own financiers that offer facilities to buy trucks either through dealers or private sellers, and you can even find plant, machinery, and vehicles on auction sites. It’s important not to be put off if your bank or regular finance provider has refused on the basis that an asset is too specialised – which can often occur with traditional lenders.

Savvy regularly helps transport and logistics clients source and finance a host of different vehicles, as well as farmers, contractors, and purveyors of all sorts of goods, including:

  • Rent to Own Livestock Trucks
  • Prime Mover Finance
  • Rent to Own Refrigerated Trucks
  • Tipper Truck Loans
  • Livestock Trailer Finance
  • Rent to Own Car Carriers
  • Concrete Truck Loans
  • Finance for Cranes

What are the benefits of using a broker like Savvy to find rent to own truck finance?

Our expert commercial finance consultants are highly skilled at identifying relevant financial products and matching them to specific businesses, sectors, and individual traders. No matter whether you’re running a huge fleet or you’re an owner-operator of a single vehicle, we can help. Our people have much experience working with real contractors, fleet managers, and sole traders in all parts of the logistics, warehousing, and transport industries in Sydney, Melbourne, Adelaide, Perth, Brisbane and all regional areas. They know the trucks, the finance options, and how to speed up and streamline the process around getting vehicle finance in place.

What that means for you is that you spend less time dealing with funding and more time making sure your business is profitable, and your contracts are fulfilled – and that extends to having the appropriate machines and vehicles in place to do a job. Savvy helps hundreds of transport companies and operators nationwide, and we’re with you from the moment you contact us to the minute your new truck gets delivered. We partner with more commercial finance providers, so you get increased competition and lower rates, no matter what type of finance and truck you need.

Why More New Australian Businesses Choose to Talk to Savvy

Not just off-the-shelf finance options, Savvy matches lender and products with businesses – no more wasting time

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Tailored Solutions for New & Established Businesses

At Savvy, our expert finance consultants will learn about your business and goals; then they’ll quickly source only relevant, viable solutions
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Expert Commercial Finance Consultants

Our people won’t rest for a minute until they’ve identified workable, cost-effective options and helped to prepare your application for success
Private or dealer? The choice is yours

We’re Not Tied to One Lender or Product

We partner with an extensive lender panel, but we’re tied to none. Our only aim is to solve your funding problems

The Pros and Cons of a Rent to Own Truck Explained

For new businesses or owners with poorer credit history, rent to own trucks work great, but there are drawbacks too

The Pros of a Rent to own Truck

Rent to own truck finance is cheaper than traditional short-term rental costs if you need a heavy vehicle for a relatively short contract or job.

Every time you make a rent to own repayment, you build equity in the truck (in the event that you go on and buy it).

Turnaround times to gain access to vehicles are relatively quick

If you’ve just started your business and need to buy a vehicle, rent to own truck lenders accept alternative documentation, compared to other forms of commercial asset finance

Contracts tend to be set up in 12-month intervals, meaning you don’t have to commit for as long as with traditional asset finance, which usually runs for five years, and you’re tied in.

You can plan for contract intervals when you’ll be better-placed to decide whether to extend the finance, buy the equipment, or return it. Excellent if a project finishes or gets extended

Rent to own truck payments get fixed, so they’re easier to fit around cash flow and projections

Rent-to-own truck payments are an operating expense, so they’re tax-deductible

You may qualify for rent-to-own finance even if you’ve been turned down by several other lenders

Cons of a Rent to own Truck

Lenders generally charge more for rent-to-own agreements than the cost of the average chattel mortgage or finance lease

If you don’t buy the vehicle, the capital you’ve invested is gone

Not all of your repayments go toward building equity in the truck. Typically, only a percentage of the payment reduces the purchase price

Your Rent to Own Truck Questions Answered in Savvy’s FAQs

Still got questions about rent to own truck finance? Find the answers quicky and easily in Savvy’s FAQs section

Will I need to prepare special reports to get approved for rent to own finance?

Generally, no. Lenders often have a customer profile form that you can fill in. Your Savvy finance consultant can help you get through the application process as quickly and easily as possible.

I don’t have a deposit. Can I still apply?

You can. Deposits aren’t necessary for rent to own agreements, so give one of our friendly expert consultants a call.

Do I need to have equity in property to get a rent to own truck?

No. You do not have to have equity in commercial or residential property when it comes to renting to own.

I need a trailer. Can I do that with rent to own finance?

You can. There aren’t really any limits to what assets and vehicles you can finance via a rent to own agreement.

 

Are there any alternatives to rent to own trucks?

That very much depends on your circumstances. If you’re not a new business and you’re just short on up-to-date financials – for example, if you haven’t filed a tax return recently or your accounts haven’t been updated for a while – you can talk to one of our consultants about low doc truck finance. That’s supplied by specialist lenders who accept different documentation from traditional commercial asset finance providers. If you had bad credit, there are some Bad credit truck finance options as well. It depends on the credit and business profile

What if I decide to buy my truck after two years?

With rent to own trucks, when you do decide to buy, the purchase price will get based on the fair value of the truck as things stand. That means you’ll be paying far less than if you had bought it at the start of the agreement. When that time arrives, you’ll also be in a better place in terms of finding finance to accomplish that because you’ll likely have some trading history and turnover behind you. Asset lenders offer commercial chattel mortgages, which can run for seven years, and you can either borrow the full asking price or use a deposit. That’s why many Australian businesses choose to get on the asset finance ladder with a rent to own truck.

How can I quickly know the specific terms for different rent to own offers?

Within 24-48 hours after you have spoken with a consultant. Not only will they identify all the best solutions that suit your needs, but they’re also always on hand to help with queries.