Christian Commercial Truck Leasing

The companies which provide commercial truck leasing seem to go the extra mile to earn their customers' business. A lease is a contract between the customer (the lessee) and the company (the lessor). Leasing companies purchase equipment from suppliers and lease it to the lessee for the payment terms specified by the contract. Equipment leases may vary in length -- 24, 36, 48 and 60 months are common time periods involved in these agreements. There are also annual and semi-annual plans, and some companies also have payment deferral options in order to optimize their customer's cash flow situation.

Full service lessors take care of much of the work involved in keeping the trucks on the road, whether this involves a single vehicle or a whole fleet of trucks. Not only will these commercial truck leasing companies help an individual find the right vehicle and arrange for financing which is appropriate for an individual's financial situation, but they will also perform a host of other services. These services may vary according to particular companies, but may include: performing repairs and maintenance, tires, providing substitute vehicles in case of mechanical failure, and complying with various aspects of regulatory compliance. Some companies will arrange for taking care of Motor Vehicle Services (MVS) paperwork, and at least one offered an annual Department of Transportation (DOT) inspection. A further option involves making arrangements for regular washing of fleet vehicles.

One impressive service involved performing repairs and maintenance. This could be arranged for at a number of the company's convenient locations. These sites hold a large inventory of parts for the particular trucks, so that there would be no waiting around while parts are ordered. Instead, repairs can begin immediately. Meanwhile, a truck with similar capacity and features is available so that the customer can carry on with business as usual. Most customers of commercial truck leasing organizations appreciate this opportunity to take unforeseen mechanical breakdowns in stride, and are particularly relieved that they can continue to provide continuous service for their own customers. This is extremely important in the transportation sector, where delays can be disastrous for owners needing to transport products (especially perishable items) without delay.

Some commercial truck leasing companies have another specialized service. Fuel cards are available which help keep track of a business' fuel costs. This is especially appropriate at the present time, when gas prices are so high, although a business owner is always wise to have a precise knowledge of business expenses so that prudent decisions can be made regarding future expansion plans for the business. As Jesus says in Luke 14:28-30, "For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? Lest haply, after he hath laid the foundation and is not able to finish it, all that behold it begin to mock him, Saying, This man began to build, and was not able to finish." There is no interest charged for the fuel cards and no monthly fees, aside from a one-time set-up fee of about $30 per account. Not only are the cards interest-free, but some companies offer rebates for dollars charged with these cards. The fuel cards can be set up in a number of ways, by individual driver or by particular truck. Also, cards can be designated as fuel-only, fuel plus certain authorized purchases, or for unrestricted use. As another extra perk, the company may offer access to fuel price information in a driver's particular location, or one can obtain the location of the station offering the lowest price along the designated route.

Other benefits of commercial truck leasing are the following. First, a lease provides a specific monthly payment, which aids in establishing a predictable cash flow. Leasing a vehicle instead of buying one may free up much-needed capital, while limiting the company's losses due to depreciation. By contracting through commercial leasing services, even a small business has access to pricing structures similar to those enjoyed by companies which are able to purchase entire fleets. Not to mention that the lessee may be able to deduct lease payments from taxes as a business expense! Check with an accountant for specific details.

A simple Internet search will reveal many sources for commercial truck leasing. Search through a number of sites before picking some that look like good prospects. In this way the customer can get a feel for the types of options and level of customer service which is available. Be sure to examine all of the terms and requirements of the agreement carefully before entering into any contract involving commercial truck leasing.

Generally, the process of purchasing a truck through a leasing facility happens in this way. The customer chooses the make and model of the vehicle, either at a dealer of his or her choice or through a vehicle database provided by the company. The company will give a quote for the consumer's review and if satisfactory, will arrange for a credit line to be opened. The vehicle is located, purchased, registered and delivered to the place specified by the customer. Some companies offer unlimited mileage and no wear-and-tear penalties for their vehicles, and even allow the customers to paint or modify the truck according to their needs. With no cash down or deferred payment for several months, payments smaller than most purchasers could arrange privately, and purchase options at the end of the contract, it is no wonder that many people who desire to purchase these vehicles turn to commercial truck leasing companies.

Christian Commercial Vehicle Loans

For most businesses, commercial vehicle loans provide the best financing alternatives when purchasing automobiles that are used for company purposes. Whether these vehicles are needed for making deliveries, for a business's various transportation needs or as company cars for staff members, these autos are generally financed differently from personal cars. There are different options that are available when pursuing this kind of financing. The most economical form of financing is generally the secured loan with the vehicle itself serving as security. Other options include line of credit financing, equity financing, the unsecured loan, or automobile leasing. All but the leasing option and the unsecured loan puts the car at risk of repossession if payments on commercial vehicle loans are not made on a consistent basis. In a lease situation, the car is more or less rented with an option to buy and is the most expensive way to finance an automobile. When a lease is up, the leaser has the option of purchasing the car outright and having the lease payments go toward the price of the vehicle. To own the car, the leaser must make up the difference between what they have already paid and the value of the car as set by the leasing company. While the cost is higher, there are certain tax benefits that pertain to leasing an automobile.

When pursuing commercial vehicle loans, a buy will generally need to follow certain steps. Verifiable proof of income is usually the first step and information in this area must be provided by the potential buyer. Proof of address must be established and the buyer will usually need to provide a legitimate driver's license. The credit history of the potential buyer is also of utmost importance. Documentation such as tax returns and bank statement will generally be presented as well. If a borrower is a first time buyer, commercial vehicle loans are not out of the question. Interest rate is another key consideration. One of the things that will determine the type of interest rate that a buyer can receive is the credit history of the potential borrower. Poor credit will elevate the interest rate or could even cause the loan to be denied completely. The type of vehicle will also be a determining factor. Is the car used or new? What is the mileage? What is the estimated value of the automobile? Another key question involves the amount of time the buyer wishes to have to pay the loan off. A borrower can generally stretch the pay off of a vehicle from anywhere between one to five years.

The unsecured loan is another possible option for anyone who is pursuing commercial vehicle loans. With this type of financing, there is no risk of repossession, but the cost is usually higher. When it comes to interest rates, options include both fixed and variable. A variable rate will follow the lead of a changing market. As its name implies, a fixed rate will remain the same and will not change across the life of the loan. There are pros and cons of each option. If interest rates remain low, a buyer can save money by choosing this route. However, there is always the risk that interest rates will rise dramatically, turning the loan into a very expensive proposition for the buyer. An equity loan is based on the equity that a particular business can claim and is usually a more economical method of financing than the unsecured loan. Tax benefits that are associated with commercial vehicle loans can be very beneficial. These benefits stem from the fact that any vehicles that are purchased for company use will be considered assets of the company. Some personal vehicles, on the other hand, are considered luxuries and are taxed accordingly. This is not the case with the commercial automobile.

A major determining factor in getting a good deal when trying to obtain commercial vehicle loans is the credit score of the potential buyer. Buyers with good credit can generally receive the best interest rates and terms that are available at that time for commercial auto loans. The credit score is determined by the financial history of the potential buyer. If the buyer has defaulted on previous loans or has a history of missing payments or making late payments, this will be reflected in the customer's credit score. Obviously, the higher a credit score, the better the terms of the financing. This does not mean that a potential borrower who has a lower credit score will not be able to purchase an automobile. But buyers who fall in this category should be prepared to pay more to achieve financing. Any decision regarding commercial auto loans will require the knowledge that can be gathered from a little research. The Bible talks about the value of God's instruction. "Receive my instruction, and not silver; and knowledge rather than choice gold." (Proverbs 8:10)

One of the risks that are associated with securing Christian commercial vehicle loans might include the risk of having an automobile repossessed if the buyer defaults on the loan. For this reason, a potential borrower should carefully look over their finances and map out a reasonable and achievable budget before signing on the dotted line for any loan. A consumer should always shop around when considering any kind of financing to make sure that they are getting the best rates and terms possible. The lease to own option can be a particularly costly way to obtain ownership of an automobile. This option can be weighed down with higher than necessary interest rates and many unreasonable fees and service charges.





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