The Pros Of Getting A New Lorry For Your Business

Any business that sells goods to other businesses or individual consumers needs to have vans or lorries to transport goods from the shop to addresses provided by clients or from the warehouse to the shop. Whatever the case, the type of lorry you use will have a big impact on your business. If you have been using an old lorry or renting one whenever you need transportation services, you should consider buying a new lorry for your business. There are many benefits of buying a brand new lorry for commercial purposes. Read on to learn more.

Save Money With a New Lorry

When you buy a new lorry and use it in your business, you will save a lot of money in a number of ways. For starters, you will avoid costly lorry hire charges. After all, most transporters usually charge a premium for their services. When you buy your own lorry, you will only need to fuel the truck and maintain it regularly. This is a much more affordable option than renting a lorry every time you need to transport goods or raw materials.

Secondly, you buying a new lorry will save you money in terms of reduced fuel costs. After all, older lorries are usually inefficient as they consume more fuel. New lorries, on the other hand, are efficient, so you can cover a longer distance with less fuel.

Thirdly, maintaining a new lorry is much cheaper than maintaining an older lorry. Therefore, you can save money on maintenance costs. That is why, you should consider making an upgrade to reduce your maintenance costs.

In addition to helping you save money, a new lorry will also improve the efficiency of your operations due to fewer breakdowns. In case you have been hiring lorries over the years, getting a new lorry will help to ensure you have a vehicle on standby to transport goods. This means you will not have to wait for the lorry hire company to avail the vehicle you need.

Different Ways To Finance A New Lorry

There are many ways you can finance a new lorry. Find the financing option that best meets your specific financing needs and preferences. Look for the features, terms and conditions that are suitable to your types of business and income source. You can save lots of money if you choose the right lorry financing option.

Hire Purchase
It is a flexible financing option to own a new lorry. There is no high upfront cost and it can be used for buying a variety of lorries. You can manage your cash flows easily because this financing comes with fixed monthly repayment option. You become the owner of your lorry once you have repaid the borrowed amount. You will be hiring the vehicle until you repay the borrowed amount completely. After you have made all repayments, you become the owner of it.

Lease Finance
It is another option to own a new lorry. It can be a tax efficient option for some types of businesses because this asset is treated as a monthly expense and not as an owned asset. Within this category, you will find various subtypes of lease options. Find the one that meets your commercial vehicle financing needs. You can add maintenance and insurance or determine whether you want to keep the vehicle for a short period of time or throughout its working life.

Sale and Hire Purchase
In this type of financing, the lender will buy your truck and then finance it back to you. On the book, you will not own the truck but rather hire it from the lender. This financing option is available for many types of businesses. Whether you are a sole trader or an established firm, you are eligible for this financing.

Sale and Lease Back
You can use this option if you already have a fleet of commercial vehicles. You can sell your asset to the finance company who will then release some of its value in the form of cash flows. You can leverage an existing asset to finance a new lorry. This financing option can be used to replace an old asset with the new one, refinance assets, or raise additional working capital cash.

Refinancing
It is an asset backed lending that helps you leverage your existing asset. It is possible to restructure your existing lorry finance. Release the value of a large asset to finance a lorry.

The other solutions include borrowing a direct auto loan or using a collateral or cosigner to borrow the amount you need for financing your lorry.