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Get Finance.
Why the right Finance Matters

The right finance is important when purchasing a courier vehicle for several reasons:

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  1. Cost: Purchasing a courier vehicle can be a significant investment, and financing can help spread out the cost over time, making it more manageable for businesses. The right finance can help you find a payment plan that fits your budget and enables you to make the purchase without compromising other financial obligations.
     

  2. Cash flow management: Financing can also help with cash flow management. Rather than paying for the courier vehicle upfront, financing allows you to make smaller payments over time, which can help you keep cash on hand for other expenses and emergencies.
     

  3. Upgrades: As your business grows, you may need to upgrade your courier vehicle to meet changing demands. Financing can help you do this without having to wait until you have saved up enough money to purchase a new vehicle outright.
     

  4. Tax benefits: In some cases, financing a courier vehicle can provide tax benefits. The interest paid on a loan can be tax-deductible, and some financing options may allow you to depreciate the vehicle's value, reducing your tax liability.
     

  5. Flexibility: The right finance option can provide flexibility when it comes to the length of the loan and the payment schedule. This can help you find a financing solution that works for your business and enables you to pay off the loan in a way that suits your needs.

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In summary, choosing the right finance option when purchasing a courier vehicle can help you manage costs, improve cash flow, upgrade your vehicle as needed, and provide tax benefits. It is important to carefully consider all available options and choose the one that best fits your business needs and goals

Get Finance.
How to get Finance

There are several options available to obtain finance for a delivery van in Australia. Some of the most common options are:

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  1. Bank loans: Banks offer various types of loans, including business loans, that can be used to purchase a delivery van. You can approach your bank and discuss your requirements with them. They may ask for a business plan, financial statements, and other documents to assess your business's creditworthiness.
     

  2. Equipment financing: Equipment financing is a type of loan that is specifically designed for purchasing equipment, such as delivery vans. The loan amount is secured by the equipment, and the interest rate and repayment terms are usually favourable. You can approach a specialized equipment financing company or a bank that offers this type of financing.
     

  3. Chattel mortgage: A chattel mortgage is a type of loan that allows you to purchase a vehicle and use it as security for the loan. The interest rate and repayment terms are usually favourable, and you can claim the GST paid on the vehicle as an input tax credit.
     

  4. Finance lease: A finance lease is a rental agreement that allows you to use the delivery van for a fixed period in exchange for regular payments. At the end of the lease term, you can choose to purchase the vehicle or return it to the lender.
     

  5. Hire purchase: Hire purchase is a type of financing that allows you to use the delivery van while making regular payments. Once you have paid off the full loan amount, you own the vehicle outright.

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Before choosing any finance option, it is important to compare interest rates, repayment terms, and other fees to ensure that you are getting the best deal. It is also essential to ensure that you can afford the repayments and that the financing option suits your business needs.

Resource Centre

1

Bank Loans

While bank loans may seem like the logical approach they are generally uncommon in the courier industry. Approach you bank for their requirements and conditions but it would be prudent to try other additional sources of finance.

2

Equipment Finance/Chattel Mortgage/Finance Lease

These types of finance are generally offered by Van sales (new and used) companies and are the most common in the industry. It may also be worth going direct to the finance company to remove any commission obtained by the new and used car companies. Finance companies typically used are as below:

Pepper Money

Toyota Finance

Power Torque Finance

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3

Hire Purchase

As mentioned above hire purchase is a type of financing that allows you to use the delivery van while making regular payments.

Some of the more popular companies are listed below:

Carclarity

Stratton Finance

Van Monster

Ford Vans

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