Ready to start looking into company car finance rates but not sure what the best financing option will be for your business?
There are many options available for company car finance on the Gold Coast, all with their own pros and cons. In this blog, we will look at the various finance options so that you can make the best choice for your business!
Options To Choose From
- Chattel Mortgage
This financing option lets you obtain the full amount for the company car that you have your eye on. This asset will act as security on the loan until it is paid off. Once paid off, you will own the vehicle. The benefit of this financing option is low-interest rates.
- Hire Purchase
Hire purchase is a financing option whereby you pay off a new or used car with monthly instalments. This means you essentially hire the car over a certain period of time until you have completed the monthly instalments, thereafter owning the car. This is a flexible financing option that allows you to choose a payment plan that suits you.
What’s important to keep note of when leasing a car is that you do not own it. After you pay to use it for a certain amount of time, you can either return it or buy it. Because of this, lease payments are lower than loan payments as you will only be paying the amount the car depreciates during the lease period, plus the rent amount, interest and any additional fees.
- Novated Lease
A novated lease car financing option is connected to your salary, whereby your employer will pay for your car repayments every month with part of your salary. Therefore, it is seen as a deduction from your salary. This car financing option gives great tax benefits!
- Personal Loan
You can also finance your company car using a personal car loan. Simply put, a personal car loan involves borrowing a certain sum of money to pay for your car, and you pay off that sum within a period of time with monthly repayments – and interest is included. The benefit of this finance option is that you can spread the cost of the car over time. However it is generally the case that the longer the term of the loan, the more interest you will end up paying.
Now that you have a bit more information on the different car financing options, you can make the best choice for your company. Contact us today to find out more about our company car finance services on the Gold Coast!