Truck transport is a highly specialised industry with no two operations alike. As such, truck buyers need to be handled in a 'customised' fashion, where the sweat is taken out of the buying, financing and insuring processes. Relief is offered now in the form of OEM finance and insurance services, effectively offering a 'one-stop-shop' to truck buyers, reports Paul Collings.

Buying a new or used vehicle invariably involves a number of processes before the deal is concluded. The dealership will facilitate your need for the right set of wheels, the licencing and servicing thereof, a bank will handle the financing of the truck and an insurance company will be contracted to cover any liability your mobile asset may incur. For many buyers out there, the sheer scope of options from financiers and insurers can be overwhelming.

It's all about having one point of contact, says Gerard van Keulen, MD of Scania Finance Southern Africa. "We are able to offer tailor-made packages that extend beyond the selection and sale of the right truck and trailer combination to include financing, insurance and Fleet Management solutions."
 

A consolidated global book of insured Scanias enables Scania Finance to offer its clients premiums at below the market rate. Gerard van Keulen

There are several advantages to going the 'in-house' route says van Keulen. "Firstly, there are less people to deal with, less paperwork and fewer banking charges. Secondly, Scania understands the trucking business. We believe in forming solid partnerships with our clients, extending services to help them through good times and bad. Whether it's an existing fleet or a start-up operation, we have the infrastructure to offer a wide range of financing and insurance options to meet individual needs."

On the issue of the new National Credit Act having a negative effect on truck sales, van Keulen stresses that most Scania customers have a turn-over in excess of R1m per annum and therefore do not fall within the ambit of the Act. "However, we do offer financing and insurance to smaller companies as well," he adds. "In keeping with the stipulations of the Act, we conduct all necessary due diligence procedures to ensure the customer has the necessary funds in the form of a 15-20% deposit, and a legitimate business infrastructure, including business premises, legitimate contracts, a healthy cash flow etc."

Time is money and Scania’s integrated recovery, repair and insurance operation brings a seamless efficiency to keeping uptime optimal, to the extent that loan vehicles are provided to keep the show on the road.

While banks seek other forms of collateral, Scania sees the truck as the only security. "We asses the risk profile of the buyer and determine both interest rates and insurance premiums accordingly," explains van Keulen.

With construction and distribution being the current boom divisions of SA trucking, Scania is well poised to capitalise on demand with its new tipper and freight models. The fact that its personnel are receptive to all worthy finance and insurance applicants should only serve to enhance what already is a quality set of products and services.