How Construction Equipment Financing Bundles Can Save You Money

Lately, you’ve probably seen more and more ads, commercials and flyers promoting bundles. From car insurance to wireless carriers to airlines and beyond, bundling services and offerings has become more common for good reason — it has the potential to save people time and money, reduce hassles or all three.

When you buy a new or used piece of heavy construction equipment, depending on the lender you choose, taking advantage of financial bundles might be an option. Some lenders are able to put together customized packages so a customer gets a more well-rounded financing structure with benefits — Volvo Financial Services, one of our sister companies within the Volvo Group, is a great example.

Bundled offers are generally available from captive finance companies like VFS who have a relationship with a manufacturer (in this case, Volvo CE). Many times, the bundled offers are put together by combining resources of the different business units. Large banks don’t have these types of relationships with manufacturers and therefore can’t structure meaningful bundles built for specific types of equipment used on specific kinds of jobsites.

For example, an attractive bundle option such as an extended warranty in addition to the standard factory warranty might be the reason a customer chooses one finance offer over another. Certain offers within a bundle matter more to some customers than others — that’s why finance companies build out packages they believe most benefit certain types of customers. In some instances, customers can pick and choose bundle “add ons” to customize their own financing package. In these instances, customers can essentially work with lenders to build out a financing package that provides them the most benefits.

HOW ARE HEAVY CONSTRUCTION EQUIPMENT FINANCING BUNDLES DETERMINED?

Financing bundles are structured with the end user in mind and are based on what customers are typically looking for or might need with regard to the purchase of a machine. For the most part, they’re program or machine specific with details around what’s included.

With heavy construction equipment, offers included in a bundle might include items such as free, limited-time telematics subscriptions or parts guarantees (covered by the manufacturer) and extended warranties or credits to a customer purchase account dedicated to parts, services, repairs and rental expenses at the dealership (covered by the finance company).

The advantages are oftentimes straightforward. For example, a $1,000 credit to a customer purchase account may be included in a bundle, but it doesn’t cost the customer anything. That money can then be used down the road for maintenance, repairs or even a rental to supplement a fleet for a new job.

If a contractor is working in a harsh environment, an extended warranty and customer account credit might be appealing to help ensure machines stay up and running longer without excessive maintenance and repair costs. With bundles, your options and benefits are much broader.

To see which bundles we’ve put together with VFS to help customers save time and money, visit our current Volvo financial offers page on our website. There might be a package ideally suited for new equipment in your specific type of work.

Written by Bonnie Janke – Commercial Sales Analyst Senior, Volvo Financial Services