Asset Finance Case Study - Repeat Client - Commercial Vehicles

October 12, 2021

Asset Finance Case Study - Repeat Client - Commercial Vehicles

October 12, 2021

Initial Inquiry

Assist a repeat client purchase three new work vehicles.

The Background

Our client runs a Strata Company, and they were approaching the end of their 36-month term on three work vehicles that we initially financed.

The vehicles cover a significant number of KM’s annually given the number of locations they manage. Each vehicle had already registered over 100,000 km’s on the odometer.

The client asked if we could assist them secured three new Subaru XV’s and arrange the finance for them.

The Solution

Supply of new Subaru’s is limited with either no available models or potentially long wait times for delivery.

Through our dealer network, we secured three new Subaru XV’s for immediate delivery utilising two suppliers.

In addition, we were able to negotiate a great trade-in of the original three work vehicles that covered the full Balloon Payment of their existing contracts.

The financed was arranged at a rate of 2.99% over a 60 Month Term with no balloon.

The Outcome

  • Demonstrates the critical role the Asset Finance specialist’s advice plays in understanding a business, how it utilises an asset & the need to structure the repayment schedule to an assets expected end of the term value.
  • Clients often seek to minimise loan repayments by adding a balloon payment without understanding future asset value, which creates a payout shortfall known as negative equity.
  • Setting up the initial contracts with the appropriate structure three years ago meant we could trade in the existing vehicles for an amount that paid the Balloon Payments in full. (No negative equity despite high km’s travelled)
  • We coordinated the immediate delivery of the three vehicles, from our suppliers to the clients three separate work locations in NSW, as a part of the service.
  • The new finance contract has an appropriate structure for the assets expected end value.
  • We have a very happy client that will provide us with repeat business and advocate our services.

The Client Feedback

For Eoin Costigan who sourced new vehicles, arranged the finance and trade-In’s:

“Eoin has now handled the financing on five vehicles for me over the past few years and his service and guidance is outstanding. Not a problem with any stage of the process, Strongly recommend Designer Financial Services”

Image author: Jfern Visions

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