This week we had the opportunity of providing Truck Finance to one of our existing customers so they could purchase this awesome looking 2010 4864 Western Star Prime Mover. Based on the photos emailed to us from Westar Truck Centre in Campbellfield, it is evident that this Truck is in great condition for a 5 year old Truck. We feel very proud to have facilitated this deal for our client, as we know that this client purchased a great Truck for a great price.
Our client came to us approximately 1 month ago seeking a Truck Finance pre-approval so they could make an offer on a Truck when a good one was found. After we issued the finance pre-approval, our client flew all across the country looking at 5 different Trucks in 3 different states in search for a great Truck in great condition and really well priced. Last week our client signed a contract of sale with Westar Truck Centre on this 4864 Western Star.
Given the fact our client was putting a driver into this Truck to fulfil contractual work, they wanted the monthly payments to be as low as possible – i.e. a 60 months term with a 30% balloon.
In order for us to have our Credit Team provide final sign off on this deal, we had to present the following arguments in order to cement the requested loan structure;
- The Truck is only 5 years old and therefore the Truck would be no older than 10 years old at the end of the 5 year loan contract.
- This Truck only had 600,000 km’s on the clock at time of purchase and that this Truck would not be accruing excess km’s over the term of the loan based on the work that it would be doing.
- Purchase gap between the market value of the Truck, the wholesale value and the actual purchase price of the Truck was within acceptable tolerances to warrant the proposed structure .
- Client had been self employed in the Transport Industry for 12 years.
- The value of this 4864 Western Star Prime Mover would be sufficiently covered if client was to trade it in at a dealer or sell it privately.
- Client had good payment history on other similar loan contracts over time.
Based on the above mitigating factors, we were able to have Credit sign off on the deal which meant client could maximise their return on this particular Truck.
When assessments are made on any type of Truck Finance, an assessing officer has to look at many varying factors to the deal that can potentially affect the outcome to the client with respect to the final structure of the loan. Our job is to negotiate with Credit to ensure our clients have an outcome that is most beneficial to them. If this client went direct to a large Bank on this deal, they might not have been able to secure the terms they were after.
Given the fact that our Finance Consultants specialise in Heavy Vehicle Finance, we have the necessary skills to negotiate with Truck Industry clients and then filter that information through to Credit in a manner that they can understand and feel comfortable with. Therefore we get more deals across the line.