Representative example: Kenji buys a fleet of trucks for his shipping business
Kenji, a resident of Ontario, runs a shipping company and is looking to replace six 2020 Isuzu NPR HD diesel trucks with new ones. He finds a 2026 model with a 14′ box priced at $76,500 per truck. Kenji is able to trade in his old Isuzu trucks for $11,500 each ($69,000) and makes an additional 20% down payment of $91,800 on the new trucks. He applies for a business loan to cover the remaining amount of $298,200.00 plus 13% HST on the purchase price less the trade-in values.
Both Kenji’s business and personal credit scores are solid, plus he can secure the loan with some of his other business assets. He is therefore approved for a loan with competitive terms. Along with the cost of the loan, he also pays around $1,800 to register all 6 trucks with the province of Ontario – this includes the cost of license plate stickers and vehicle permits (he can reuse the plates from his old trucks, so he doesn’t need to buy new ones).
| Purchase price of new truck | $76,500.00 per truck ($459,000.00 for 6 trucks) |
| Loan type | Business loan (term loan) |
| Loan amount | $348,900.00 |
| Interest rate (APR) | 7.90% |
| Loan term | 5 years |
| Additional fees | 3.00% origination fee ($10,467.00) |
| Monthly payment | $7,057.75 |
| Total loan cost | $423,465.00 |
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
