Mack, Daimler offer fleets finance programs to keep cash flowing

Dive Brief:

Daimler Truck Financial and Mack Financial Services are offering several programs to help fleets and buyers during the COVID-19 crisis.
Daimler's new option offers qualified buyers up to 120 days to make their first payments on Freightliner or Western Star models. Mack is offering four finance programs, all of which extend the first payment date for qualified buyers. Mack programs are for 2020 and 2019 Mack Anthems, Mack Pinnacles, Mack Granites, Mack LRs and Mack TerraPros. The programs are only open to new and qualified buyers.
The offerings could help fleets on cash flow, while keeping truck sales from falling too low in the next few months. Amid the crisis, February's Class 8 sales dropped to 2010 levels, according to FTR.

Dive Insight:

A number of automotive finance companies, including Toyota Financial Services, have worked to assure car customers during the COVID-19 crisis. The moves by Daimler and Mack show truck finance agencies and OEMs are also eager to help fleets make buying decisions in the middle of a pandemic, while keeping business flowing.

Daimler's program is aimed at vocational trucks in the construction segment, which could see many idled projects in the next few weeks. Tobias Waldeck, head of Daimler Truck Financial, said its program is just one of a number of options Daimler offers to help customers run their businesses.

"We know that customers in the construction segment have different business cycles and credit requirements," said Waldeck in a March 25 news release. "We will work together with our team at Daimler Trucks North America to provide financing solutions that fit their needs."

In addition to the 120 days, Daimler has several vocational-specific finance alternatives and custom finance packages, including retail loans, seasonal and skip payments, multiple lease options, and flexible payment terms, the company said. The program ends Dec. 31.

Mack's programs will extend to all segments, from companies who use day cabs to those who use garbage trucks and construction vehicles.

"It's critical that deliveries are made and construction projects continue, so Mack Financial Services developed these enhanced finance programs to help our customers with their operations during the current situation," said Tom Guse, president of Mack Financial Services, in a Tuesday news release.

The finance programs come as the federal government is working to keep trucking companies moving. On March 27, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, part of a $2.2 trillion package to assist trucking businesses and provide liquidity while many shippers slow down or shutter for the next several weeks.

The bill creates the Paycheck Protection Program, a nearly $350 billion program to provide eight weeks of cash-flow assistance to small businesses through 100% federally guaranteed loans to employers who maintain their payroll during the COVID-19 emergency. The bill also directs the Small Business Administration (SBA) to use its Economic Injury Disaster Loans (EIDLs).