What can I use as security for a truck loan?

A loan can help provide the funds that you need to purchase a new truck. Rather than having to pay the full purchase price of a truck upfront, a loan will let you purchase the truck now, but have the ability to repay it back over an agreed-upon period of time. There are many options when it comes to truck finance, including taking out a secured loan. In this type of loan, you may have the option to use the truck itself as security for your loan.

Read on below to find out more.

What can I use as security for a truck loan?

When you’re looking at a secured loan to purchase a truck, you might have questions about what exactly can be used as security. In most cases, the truck itself will act as security for the term of your loan. This means that you may not have to put anything else up as security, depending on your lender and loan type.

Generally, the most common type of vehicle loan is a secured loan. You may find that interest rates on your secured truck loan is fixed, which means that your repayment amount will stay the same all through the term of your loan. If you fail to make your repayments, your lender can sell the secured truck to recover the unpaid funds.

On the other hand, unsecured loans can be risky for lenders because generally, no security asset is provided by the borrower. It may be possible to apply for an unsecured loan if you have a guarantor. Generally, a family member can act as a guarantor for unsecured loans, which means they are willing to make your repayments for you if you are unable to make them yourself. This will of course depend on your lender, and whether or not they will offer an unsecured loan.

What are the differences between a secured and unsecured loans?

There are several differences when it comes to secured and unsecured truck loans. Some of these differences might be:

Your loan terms – As secured loans are less risky for lenders, they may come with better loan terms. You may also be able to opt for either a fixed and variable rate with either a secured or unsecured loan.
Loan fees –Generally, both types of loans could come with establishment fees, although the amount may depend on your lender. You may also be able to find a lender that will not charge you establishment fees.
Loan flexibility– This difference depends on whether your loan is fixed or variable. If you choose to apply for a fixed-rate loan, you may find that you cannot make extra repayments, or repay your loan early.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream truck. The lending criteria from other lenders can be far too strict when you have bad credit.

Tiger Finance can make getting a loan simple. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a bad credit truck loan.

How we can help

Tiger Finance is here to help you to get your dream truck regardless of your credit score. We can make the process simple and pain-free. With our quick application process, we can have you approved on the same day that you apply if you’re able to meet our criteria. Our loan specialists will make the entire process stress-free.

If you’re ready to drive away in your new truck, call us today for your free initial consultation with one of our loan specialists.