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Best Financial Options If You’re Going to Buy A Car For Your Business

  • June 28, 2021

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Starting a business can be a great venture, especially when you begin to pull in customers. Most companies often find that they require a car to get from point A to point B, especially if their business relies heavily on fieldwork, such as roofing companies, landscaping, and other enterprises that require them to go to their clients or keep up with appointments. 

If they discover that their business is heavily reliant on transportation, two major questions will come to mind: 1. Where do I find a car for my business? 2. How do I find financing for my car, can my business pay for it? The first question is typically easier to answer. Dealerships, whether they specialize in new, pre-owned cars or both, will, of course, be your best bet, depending on the vehicle you are looking to use. Some dealerships specifically deal in commercial vehicles for businesses, no matter what the brand, so if you're looking for a van, whether it's a Ford or Honda Civic for sale, you'll be able to find it.  

The second question can be a little more complicated, mainly because there are many options available. So, which is the best financial option if you're looking to buy a car for your business? Here are three: 

Leasing a vehicle 

If you aren't looking to spend much money or you're looking for something to tide you over until you can buy your own, leasing a vehicle is a viable option. It's effectively renting a car for a certain amount of time and paying a monthly fee. You can have a long-term or short-term lease or however long you need it. According to Experian, your monthly payment will depend on the vehicle's depreciation. The difference between its current value and its value towards the end of the lease. It also includes any fees and interest. 

Auto Loans

You might already be familiar with a business loan if you took one out for your company, but there are also car loans available that could aid with purchasing a vehicle. Different banks or loan lenders offer various options, for example, a car loan could start from $10,000 for between 48-72 months, or you can look at alternative lenders, such as Balboa Capital, which offers loans up to $250,000. It depends on what you're looking for in the end. It does help to do your research to find out what is best for you and your business. 

Hire Purchase

Another option that comes with leasing is a Hire Purchase deal. This is entirely different from the leasing explained earlier because these leases give you the option to purchase the vehicle later. You pay down payments for the van or car, but you don't own it until it is fully paid. According to Money Savers Expert, around 10% of new cars and 60% of pre-owned vehicles are Hire Purchase. So it might be a good option for you, especially if you're looking for a car to hang on to once your lease ends. 

Final Thoughts 

and you're highly encouraged to check out any other options that you may come across. You'll never know what you might find.