Buying a bus or coach can be incredibly costly, especially for the average person, a small business or a school. In many cases, financing is needed to make the purchase. Banks and other mainstream lenders normally offer different types of financing products, such as asset finance, car finance and equipment finance. However, very few of them offer bus & coach finance Australia. To ensure that you find the best financing product in your city, you should consider the following factors:
i) Interest Rates
The interest rate quoted by a company is a key factor to consider. The interest you pay is the cost of borrowing. Since you don’t want to pay a lot of money for the loan, you should take your time to search for financial institutions offering these loans and compare their interest rates. Since you will need time to repay the loan, you should consider asking for a fixed rate loan because your loan payments will not fluctuate over time.
ii) Deposit Required
The amount of money required as down payment for the loan should also be checked. This is because you may not have a lot of money to pay as deposit. Some firms normally ask for a 20% deposit before approving applications. Since buses and coaches normally cost tens of thousands, and at times hundreds of thousands of dollars, you may not be able to come up with such a huge deposit. For this reason, you should check the deposit required by different lenders to ensure you can afford the deposit.
iii) Loan Terms and Conditions
You do not want to be forced to clear the loan in a year or two because the monthly payments can be financially crippling. For this reason, you should choose a lender offering a long repayment period, preferably 3-6 years. There should also be provisions for refinancing the loan as well as renegotiating the monthly payments. Lenders offering flexible terms and conditions should always be given priority consideration.
iv) Industry Experience of the Lender
Asking for financing from a lender with little experience in the industry is never recommended because they may offer terms and conditions that are not suitable for you. To ensure you get the best financing product, you should choose to work with a financial institution with a lot of experience in the industry. Ideally, you should search for lending institutions offering bus and coach financing specifically as they are likely to understand industry challenges. This means they are able to provide you with the best financing product for your needs. That said, you should not be in a hurry to make a decision.