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
- 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