Commercial trucks are vehicles used solely to support your business operations. As your business grows, you might see the need arise for a vehicle to support and help expand your business. Commercial vehicles can help businesses save on cost and delivery time, improve efficiency and productivity which in turn can contribute to a higher bottom line. Let’s look at how to go about owning a commercial truck in Singapore and how much it would cost.
Firstly, only registered businesses are allowed to own commercial vehicles. An individual is not allowed to purchase a commercial vehicle in Singapore, except for individuals who possess a hawker license from NEA. There are 4 types of commercial vehicle in Singapore;
- Light Goods Vehicle (LGV)
- Heavy Goods Vehicle (HGV)
- Very Heavy Goods Vehicle (VHGV)
- Goods-Cum-Passenger Vehicle
A truck could be a LGV, HGV or GPV. Light good vehicles have a maximum weight laden of up to 3500kg. Heavy good vehicles are vehicles with a maximum laden weight (MLW) between 3,501kg to 16,000kg. Both these types of vehicles are used to transport goods and equipment. A GPV can be used to carry both passengers and goods and has a maximum laden weight of 5000kg.
As with any other vehicle in Singapore, commercial trucks require a Certificate of Entitlement (COE) and are subject to a $220 vehicle registration fee. A benefit of commercial vehicles is that opposed to personal vehicle where only 70% financing is available, you can receive up to 90% financing when purchasing a commercial vehicle. The road tax on these commercial trucks can cost anyone between $270 to $498 every 6 months, depending on the MLW.
A brand-new entry level truck starts at $49,500 and can cost up to $130,000 depending on the specifications and feature. The interest rate on vehicle loans on average is 4% per annum and depending on your tenure, you could end up paying up to 32% more than the original vehicle price.
As with all vehicles in Singapore, you must obtain a COE for your commercial truck. There are only a certain number of COEs and hence, it becomes a bidding war in between vehicle owners and the COE can go up to $100,000. The average price of COE for commercial vehicles in Quarter 2 of 2022 was around $50,000. So whatever the price of the vehicle you’re purchasing, be ready to add an additional $50,000 on top of that!
A great alternative to buying a commercial truck is instead to lease one. It offers the same benefits to your business operation without the hassle and added fees of owning one. At Pan Pacific leasing, we offer a wide range of commercial trucks to suit your growing business’ needs.
Instead of spending time applying for loans, and legal documents for your vehicle, you can focus on growing your business. In the event of a truck breakdown, it will cause disruption to your business, and you will incur additional charges when leasing a short term rental to cover your operations during that period. When you lease your truck from us, you can be rest assured that there will be no downtime on your business operations as Pan Pacific Leasing offers 24/7, round the clock recovery and replacement. This is an option that you might not have with owning a commercial truck.
Check out our full fleet of vehicles here,( https://www.panpacificleasing.com.sg/vehicles/ ) to choose one that fits your need. Speak to one of our professional and knowledgeable team members to find out more on how to customise the trucks to fit your business specifically. (Request a quote form link or the request a quote form bottom)