A new year lies on the horizon and if you are thinking about expanding your fleet ZA Trucks and Trailers is the perfect place for you.

ZA Trucks and Trailers is your one-stop solution for sales and acquisitions of quality pre-owned fleet trucks, trailers and plant equipment in South-Africa and Africa. They are specialists in truck exports to countries like Botswana, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe.

We all know that Janu-worry can be a difficult time to expand your business. But ZA Trucks and Trailers can refer you to the right people to assist in financing your new truck or trailer.

As with anything in life there are however conditions. Unfortunately, they do not do financing deals on export trucks, except if the client already has financing from the bank, and they do not do financing for trucks older than 2015.

What would you need to apply for finance?

To apply for financing for a second-hand truck and trailer, you generally need to provide the following:

  • Personal information: This includes your ID, proof of residence, and possibly a valid driver’s license if you are an individual borrower
  • Financial documents: Bank statements (usually three to six months), proof of income, and possibly tax returns for both personal and business (if applicable)
  • Credit history: A good credit score and detailed credit history to help determine your eligibility and the interest rate
  • Business information (if applicable): Financial statements (profit/loss), business registration documents, and sometimes a business plan to show the intended use and revenue generation potential
  • Truck and trailer details: Details about the vehicle and trailer such as the make, model, year, mileage, condition, and VIN. The bank or lender might also require an independent inspection or valuation
  • Deposit: Some lenders may require a deposit, especially for second-hand vehicles

If you however decide to make use of another financial institution or financing, ZA Trucks and Trailers has shared some tips to look out for and avoid.

Interest rates and total cost of financing

Look for: Competitive interest rates that align with the industry average, which can vary based on the vehicle’s age and condition. Calculate the total cost of financing over time, not just the monthly payments.

Avoid: Companies with hidden fees or abnormally high rates for used vehicles. Make sure the rate is fixed or clearly outlined in variable rate terms.

Eligibility criteria

Look for: Clear requirements for credit score, down payment amount, and truck or trailer age limit. Most lenders have specific guidelines and knowing them in advance will save time.

Avoid: Companies with vague criteria or those unwilling to explain their requirements. This may indicate a lack of transparency.

Loan term options

Look for: Flexibility in loan terms, such as shorter or extended terms, which can affect the monthly payment and overall cost. Consider if early payment options are allowed without penalties.

Avoid: Long-term loans that reduce monthly payments but greatly increase the interest paid overtime. Be cautious of rigid terms that do not allow early repayment.

Approval process and documentation

Look for: A straightforward application process with clear documentation requirements, such as proof of income, credit history, and the vehicle’s purchase details. Some companies may also require vehicle inspection reports for used trucks.

Avoid: Excessive or unclear documentation demands, especially if the financing company is unfamiliar or has limited experience with truck financing.

Reputation and reviews

Look for: Financing companies with good reviews, especially from other truck owners. Seek recommendations from trusted sources and check online reviews or industry-specific forums.

Avoid: Companies with frequent complaints about hidden fees, poor customer service, or aggressive debt collection practices.

Flexible payment options

Look for: Options for seasonal or structured payments, which are helpful for businesses in industries with fluctuating cash flow. Some lenders offer payment breaks or reduced payments during off-seasons.

Avoid: Companies with rigid payment schedules that do not align with the client’s business cash flow, especially if it impacts operational flexibility.

Insurance and additional fees

Look for: Clear terms about insurance requirements. Many lenders require comprehensive insurance for financed trucks and trailers, so compare insurance options.

Avoid: Lenders that automatically add high insurance premiums or other mandatory fees without allowing clients to explore better options.

Prepayment and penalties

Look for: Lenders who allow prepayment without penalties, which can save on interest.

Avoid: Companies with high prepayment penalties, as this can make it costly to pay off the loan early.

When looking for a trusted partner, excellent service and advice as well as the best pre-owned trucks and trailers on the market, look no further than ZA Trucks and Trailers. You can visit their website at www.zatrucksandtrailers.com.