T hirty years ago, if you wanted a new truck there
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were two ways of getting it. You either borrowed money from the bank, or you borrowed money from yourself. Then you either paid for it in a lump sum or got it on the drip. In either case it was your truck, paid for by your money.
We've come a long way since then. Nowadays there are plenty more ways of acquiring a new wagon: hire purchase, operating lease, finance lease, long-term rental, contract hire... the alternatives to outright purchase are many, varied and complex. It's no wonder that a whole new business has sprung up offering financial services to truck operators.
There's a new breed of transport professional in the yard and he's come to tell you how to optimise your cashflow, galvanise your gearing, bolster your balance sheet and generally ensure your profit and loss figures are the toast of Threadneedle Street. The trouble is that no-one without a degree in business management has the faintest idea what he is talking about.
If the finance industry has one glaring fault it is that it continues to talk about the alternative methods of vehicle acquisition in a language that is totally inaccessible to the average haulier. No wonder so many still buy outright.
The real irony is that inside all that financial fog are some excellent packages which can help hauliers make the very best of their business, particularly when times are hard.
That's why CM has teamed up with Volvo Truck Finance to decipher the financespeak and to explain the most popular methods of vehicle acquisition in language you'll understand.
We've described in simple terms the financial implications of the most popular packages alongside outright purchase. We've also talked to the users of those packages, so you'll be able to make comparisons as to which cap fits you best. But most important of all we've let the truck operators explain it themselves.
Brian Weatherley