Everyone is fond of cars. Not all of them can afford a car. However, there are several financial institutions that offer financial aid to buy a car. Getting a car financial aid for personal use is easy and hassle-free. However, availing business car financial aid involves many formalities.
Buying cars for business purposes can be done by several ways. Finance lease, novated lease, fully maintained novated lease, commercial hire purchase and chattel mortgage are some of the best business car financing options.
In a financial lease, the financier purchases the car on behalf of a customer. The customer leases the vehicle from the financier and pays a monthly rental to the financier. The customer can either pay an amount and own the car at the completion of the lease period, or begin a fresh contract. Financial lease offers greater flexibility, when compared with purchase of a car. For persons, who enter into the car rental business fresh, financial lease is highly beneficial.
Novated lease is a method by which an employer pays the lease amount to the financier on behalf of the employee. The lease liability is transferred to the employee if he or she leaves employment. This method suits best for working professionals. Fully maintained novated lease is one in which the employer bears the operating cost of the vehicle. This method is beneficial to both employer, as well as, employer of an organization.
A chattel mortgage is own in which a financier funds a person to buy a car and later takes the vehicle as security for the loan. This method offers tax benefits and is suitable for businesses that use cash accounting.
Commercial Hire Purchase as the name suggests is exclusively meant for commercial purpose. In this method, the buyer buys a car from the financier and repays the financier in easy monthly installments. In this method, the buyer gains the complete ownership of the car, only when he or she pays the financier completely. This method suits the best for those who wish to buy a car for business purposes.
Leasing and buying, are the two basic financial options, available for business cars. One cannot easy come to a conclusion regarding the best option between the two of them. Each one has its own pros and cons. Leasing reduces liability of depreciation charges caused to the vehicle and saves sales tax. On the other hand, buying offers the privilege of ownership of the vehicle. Each person has a different priority. Leasing or buying a vehicle depends upon the priority of the individual.
In todays world buying, a car for commercial purpose is not an immense deal. With an abundance, of resources and hassle- free procedures, anyone can afford a car and use it for business purpose. Even though, there are several business car finance options it is up to the individuals affordability and wish to choose between them. If you are an individual, willing to buy a car, for business purpose, do not hesitate, to approach, one of the many financiers, available, today!
These days there are lots of different car finance brokers who can get you a variety of loans. It is important to choose a low rate loan with a car finance company you are comfortable with.
Tags: Business, Buying, Finance, Leasing, Options
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