Cost-Saving Tips for Buying Used Commercial Vehicles

Age, engine condition, body condition, and so on. Keep in mind, good maintenance history of the old vehicle means, a strong foundation for your new journey with the truck and also a good mileage.

Draw up a budget:

When buying a second-hand commercial vehicle a very important aspect is funds. Banks and NBFCs (Non-Banking Financial Companies) like ours, fund the purchase of pre-owned commercial vehicles. This includes covering the purchase costs, as well as additional costs like insurance, maintenance costs, fuel, and financing charges.

Research financing options:

Before getting a Used Commercial Vehicle Loan, lease, or financing it with any other means, you have to evaluate the interest rate, Loan conditions, and down payment costs.

Financing for a commercial vehicle:

It has become a common practise to use commercial vehicle finance when purchasing company-owned cars or larger commercial vehicles.

Broadly, there are three types of commercial vehicle finance:

• Hire Purchase
• Finances Lease
• Contract Purchase

Hire purchase:

Under a hire purchase agreement, you pay a fixed rate of interest for the whole tenure and benefit from fixed monthly payments which helps keeping your budgeting simple.

You get to select the amount of deposit you wish to pay, typically a minimum of 5% up to 50% of the vehicle’s purchase pricing. The balance amount, together with the interest, is repaid over an agreed period. The terms can vary from 1 to any number of months, but 12 and 48 month agreements tends to be the most common.

VAT is paid initially and it can be claimed back on your first VAT return after purchase.

Finance Lease:

Under Finance Lease, the vehicle is hired for you by the finance company and remains in the ownership of the finance company throughout the term of the agreement. Monthly payments are fixed for the duration of the contract. Because you do not take ownership of the vehicle at the start of the contract, it has a very different treatment for tax purposes.

VAT is payable on the monthly rentals rather than in full at the beginning of the contract. Contract lengths tend to be either 12, 24, or 36 months. At the end of the agreement, the vehicle is owned by the finance company.

Contract hire:

Contract Hire, sometimes known as an Operating Lease, is much like commercial vehicle leasing.

Contract hire has more restrictions in the terms and conditions, than a finance lease, but can be used for a wider range of assets, including company owned vehicles. In this case, the vehicle is hired for an agreed period, usually between 12 and 60 months, and a rental is paid based on a pre-agreed mileage limit.

Our Used Commercial Vehicle Loans:

Balance Transfer (Secured Loan Offering):

You can save more by transferring your high-cost commercial vehicle loans to us. We provide affordable secured loans for your commercial vehicle with a number of benefits.

Personal Loans for existing customers:

Along with Used Commercial Vehicle Loans, you can also get the best offers on our Personal Loans. Avail up to Rs. 1.5 lakhs without any additional documentation and collaterals.

Key Features and Benefits of our Used Commercial Vehicle Loans:

• Low interest rate
• Loans for up to 15-year-old assets
• Faster Turn Around Time (TAT) with minimum documentation
• Quick Loan approval
• Refinance for your existing vehicle

Buying a used truck can be a major investment for businesses in various industries, so selecting pre-owned commercial vehicles can offer substantial cost savings. Therefore, it is important to think about the key factors before making such a decision.

Quality check before buying an old commercial vehicle:

When you go about buying a used commercial vehicle, a very important thing to take note of is the reputation of the seller, whether they have credibility dealing with the sales of second-hand commercial vehicles, if they offer used vehicle warranties, and for what period. Without knowing the seller’s history, it is hard to determine the authenticity of your purchase, especially of an old commercial vehicle.

Vehicle History and Maintenance Records:

A very important factor in question is the vehicle’s history and maintenance records. Get an extensive vehicle history report from TVS Credit today, to check the previous ownership, accidents, repairs, and mileage. Check the maintenance records to determine if the truck has undergone regular servicing and if any major repairs have taken place.

Mechanical Condition and Inspection:

A mechanical inspection should be done to know the current condition of the used commercial vehicle. Take help of a qualified mechanic or technician to check the engine, transmission, suspension, brakes, electrical systems, and other vital components.

Usage and Mileage:

Make note of the vehicle’s usage and mileage to estimate its remaining lifespan and potential repair costs. Excessive wear and tear, high mileage, and demanding applications may indicate a higher risk of mechanical problems.

Fuel Efficiency:

For commercial vehicle operators, assess the fuel efficiency of the used truck by researching its make, model, and engine specifications. Consider factors such as aerodynamics, engine technology, and emissions standards to determine the truck’s potential fuel consumption. Opting for a more fuel-efficient truck can provide long-term savings and minimise environmental impact.

Insurance and Warranty:

Securing reliable insurance is as important as buying a used commercial vehicle. When buying a used truck, having the insurance papers in order is paramount as they travel all over the country and undergo many inspections as a result.

Verification of RTO-related details such as fitness certificate and tax payment information can be conducted via the Vahaan website with our executive’s assistance.

Also Read: How Used Commercial Vehicle Loan helps your business?

When you already found a good investment opportunity in terms of a Used Commercial Vehicle, financing it with us is quick and easy giving you a smooth journey towards acquiring it. Our products and services are available as per your needs!