Cab chassis ute or light duty truck? Pros, Cons and Vehicle Finance Considerations
Business Finance provides cost effective, cheaper interest rate vehicle finance for both work vehicles such as utes and cab chassis models as well as trucks
. So we can handle requests and comparison quotes for businesses that are considering making the move from the ute as the main vehicle to a light duty truck as the business workhorse.
While many operators will be welded onto the idea of a classic ute, others may be open to considering whether another option may deliver cost-savings, productivity gains and other benefits to the business. With costs in general on the way up, any wins in improved productivity can be welcome.
Any differences in the vehicle finance will also be a top-of-mind consideration. The RBA
has hiked rates over several months and most operators will be well aware of the significance of interest rates to the overall cost of finance and the monthly loan payments. So any move to a small truck from a cab chassis is sure to include a comparison of the finance options.
The types of sectors and businesses that may consider such a change in work vehicle may include gardening and landscaping business; contractors providing building maintenance services; utilities and other services and goods installers; a range of building industry trades; and many others. If an operator needs to transport a heap of gear, tools and supplies to the job, then a light-duty truck may present a more workable option to a ute.
We address a number of possible queries, including around finance, around the difference between utes and light-duty trucks.
On-the-Job Pros and Cons
One of the biggest pluses in favour of a light-duty truck is the increase in payload. A larger payload means carrying larger loads and that can pay-off in a number of ways:-
- A fewer number of trips to and from site which can reduce time and increase efficiency. Where travelling to/from sites is not charged to the client, any savings here may be a real win.
- Less vehicles required by the business as the larger vehicle can handle all the load requirements which may have previously needed say two or more utes.
- Fuel savings are top of mind for pretty much everyone at the moment. Being able to cut down the number of journeys can reduce fuel and present a definite savings. Some light-duty trucks may also include more fuel-efficient features than some ute models.
- While typically larger in size, many models of light-duty trucks do not require a truck driver licence. They can be operated with a normal licence. As such, special staff would not necessarily be required. Many existing staff members may be capable of handling the vehicle.
- Truck manufacturers include many driver assist and safety features on the latest models to assist drivers with comfort, ease of operation and safety.
- The increased capacity of a light duty truck may offer the opportunity for the business to expand into new areas to capture new work opportunities.
- Many small trucks offer single and dual cab options as do cab chassis vehicles. So there may be no difference in how many workers may travel to site in a truck compared with a ute.
- Another very important consideration at the moment is availability. The long wait times for delivery of some of the most popular utes has been widely reported. If a new vehicle is required asap, light duty trucks may be more easily sourced and quickly acquired.
- Acquiring a truck faster than a ute, may mean finance at current rates rather than after further RBA rises have been announced.
On the positive side for the ever-popular ute is its suitability for both recreational and private use as well as for business purposes. Many sole traders and small business owners will appreciate the versatility of a ute compared to a truck when it comes to family duty and recreational pursuits. Most utes are ready and rearing to go when loaded up with motorbikes, mountain bikes, camping and fishing gear, hitched up to the boat or towing the caravan.
To assist with the buying decision, consider some of the models from the top-selling truck brands such as Isuzu
, and Hino
We provide finance for both trucks under our Truck Loans
category and for business vehicles such as utes under our Business Car Finance
. Both offer the same types of finance – Chattel Mortgage, CHP, Leasing and Rent to Buy for truck acquisitions.
The interest rates on truck and car finance are similar and we source cheaper rates on both types of finance. We negotiate the cheapest rates with our lenders and lenders will assess each application in making a loan offer. So the rate is more determined by the business application than the type of vehicle.
Both acquisitions should be eligible for temporary full expensing when acquired with Chattel Mortgage.
Food for thought? It is an interesting proposition and one that may be attractive to operators in many sectors. To assist with the decision-making, speak with us for quotes on ute finance and a truck loan.
To discuss ute versus truck finance contact Business Finance on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.