papua trapezium: Consider the Option of Commercial Truck Finance Before Buying ...

For those of you who are in the transportation industry, you are aware of the prices of commercial trucks, commercial trailers and specialty trucks. Some commercial trucks and trailers can cost as much as an entire house! A purchase of this size is not to be taken lightly.? Prior to making a big purchase, a lot of thought and consideration must be put done.? You will want to make sure that the equipment that you are looking at is exactly what you need to improve your business and that the equipment will generate enough profit to pay for itself and then some.? Generally speaking, most transportation companies are not willing to pay cash for such a large purchase. Instead of using their working capital to buy new equipment, most companies will consider the option of commercial truck finance before buying.?

?Commercial vehicle finance institutions most often specialize in commercial truck finance, commercial trailer financing and specialty truck financing. This can range from Class 7 or Class 8 trucks to gooseneck trailers to medium duty snow plow trucks.? Commercial finance institutions will offer two options as a way of financing ? a lease or a loan.

?A commercial truck loan is when the entire purchase price is financed. In most cases a down payment or trade-in vehicle is required in order to achieve the loan, and the remainder of the purchase price is paid off through the monthly payments throughout the remainder of the term.? At the time of the purchase, taxes are paid on the entire purchase price. A tax deduction may be claimed on a portion of the interest paid throughout the year. A deduction may also be made for the depreciation of the vehicle, depending on the IRS depreciation schedules.?

?A commercial lease is another option in commercial truck financing and can be used for used truck financing as well. Depending on the current financial situation of the business, many businesses opt for a commercial vehicle lease over a commercial truck loan.? A lease is a brilliant way to finance a commercial truck or trailer. The finance terms can range from 24 months to 60 months and the approval process is generally quicker than that of a bank loan; usually an approval can be received with in 24 hours. In most cases a down payment is not required; instead, some commercial lenders will request two monthly payments upfront. A lease does not appear on your balance sheets as a debt, where as a purchase will increase your liabilities. Another benefit of a commercial vehicle lease is the tax write-off. Monthly payments can be written off in their entirety because they are tax deductible because the cost of the equipment is considered as an operational expense and not a liability.

?The next time you are considering purchasing a commercial truck, commercial trailer or specialty truck, be sure to consider commercial truck finance and all the benefits it has to offer.

Call TruckLenders USA today at 877-233-1475 or visit www.trucklendersusa.com for more information.