Blog

Financing your company fleet is no idle consideration. Neither is buying a delivery van for your small business enterprise. No matter how big or small your business may be, the choices you make now in terms of your company car loan will affect the fiscal health of your company in a number of ways.

The factors involved affect your current cash flow and affect the value of your monthly and annual financial statements and registers. This is why our team at ZEP Finance would like to share some useful information on how it differs from a regular car loan and what your benefits may be.

Here Are The Basics

A car loan for business is intended to be exactly that: financing solutions that cater specifically to the needs of commercial enterprises (from small businesses to large scale enterprises) and their employees. These loans cover all vehicles, including employee cars, company fleet cars, delivery vans, equipment, and even large scale trucks. It all depends on the business you run! Here are your options:

• Chattel mortgage
• Hire purchase
• Lease
• Novated lease
• Personal loan

How A Company Vehicle Loan Compares To A Personal Car Loan

The biggest difference between a company loan and a regular car loan is that you are awarded more benefits, such as lower interest rates or higher flexibility in repayment structures when you opt for a business car loan. You may also be given the option of using the actual vehicle as collateral or security as opposed to capital. If the vehicle becomes a business asset under a chattel mortgage, your tax benefits are determined by the depreciation of the vehicle and the interest charged on your loan. In terms of leasing, the cost will be tax-deductible as long as the vehicle remains functional in terms of business-related transport. If there is a vehicle being used for business purposes, you should definitely look at the benefits of financing it as a company vehicle!

You Have Options

Remember that at ZEP Finance, we offer not only the loan options as described above, but we also offer the option to refinance your existing company car loan while getting a new car. Please also speak to us if you are self-employed or looking for a solution that requires minimal documentation – our low document options simply require your ABN to be registered for 2 years. If you would like to find out more, give us a call on 1300 557 027 or use our convenient online contact form.

Related Tag: Refinance Car Loan

Car loans are incredibly useful and sometimes vital financial tools that your business can use to ensure that it has access to the vehicles it requires to operate. A new car loan on the Gold Coast may be exactly what you need, from machinery to staff vehicles. Alternatively, you may be looking at a car loan for personal use that offers you the same peace of mind and support.

At ZEP Finance, there are many financing options available to you (we offer chattel mortgage, hire purchase, leasing and personal loan solutions). Before you finalise your choice, we’ll go over the different aspects we will be comparing when preparing a solution tailored to your situation as well as your specific needs and considerations to ensure the best possible fit.

Questions To Discuss

Here are the considerations we will discuss with you:

• Do you need immediate ownership of the vehicle?
• Do you want to pay a cash deposit in order to get lower monthly repayments?
• What is your choice in terms of a residual or balloon payment?
• Have you considered the various tax implications of the loan that you select?
• What are your repayment and financing goals?

Here’s What We Need To Get Started

In order for us to provide you with a quotation or finance offer, we will need you to provide us with the following information:

• Car model and age
• Whether the vehicle is used, new, or a demo
• The price of the car
• Sale type: private or dealership (private sales may drive up the interest rate)
• Is this for personal or business use?
• Do you own a home?
• Ideal loan term or even weekly/monthly repayment brackets
• Are you hoping to consolidate any other debt?
• Share more with us in terms of large equipment purchases such as lawnmowers or trailers

Once we have this information, we will be able to prepare a detailed solution that fits your needs.

Want To Get Started?

Get in touch with ZEP Finance about your new car loan for the Gold Coast today by calling us on 1300 557 027 or simply use our convenient online contact form.