We know you got to where you are in business with hard work, dedication and probably way too many late nights! But how are you actually getting to places like the office, warehouse or work sites? And is your commercial vehicle meeting your business needs? or is it holding you back?
Purchasing a commercial vehicle is an excellent choice for many reasons. It allows you and your team to have the right vehicle at your disposal, that suits your needs and purposes rather than being limited to those at a rental company. Having the correct vehicle for your type of work can also make a job much easier to complete. Even better, you’ll have the option to pay off your own asset, not someone else’s.
‘Commercial vehicle’ is a blanket term for a range of vehicles that support a businesses work needs. When gaining vehicle finance you might be looking to purchase any of the following:
- Light trucks
- Heavy-duty Trucks
- Traditional company car
Types of vehicle finance
There are a range of commercial vehicle loan options to choose from and it can be a confusing process, luckily your friendly finance broker, SFE Loans can find the best car or truck finance that meets your business needs and financial situation. So what are your options?
Equipment loan/ Chattel mortgage
When utilising an equipment loan or chattel mortgage, your lender will give you the finance to purchase the equipment you need. The purchased asset will then be used as security for the money you have borrowed. In this instance, you can utilise the vehicle as you please and you will be the sole owner.
Hire purchase agreement
In a hire purchase agreement, a contract is drawn up to purchase equipment over time from a lender. This means you don’t own the equipment while making the payments, but you are entitled to use it during the agreement period. When you make the last payment, ownership is then transferred over to you and the asset is entirely yours.
Under a lease agreement, you can lease an asset from your lender by paying a regular sum, it should be noted that unlike a hire purchase agreement, you may not automatically own it at the end of the repayment period. Depending on the terms of your agreement, you may have the option of purchasing the equipment at its depreciated value, extending the lease period or returning the equipment at the conclusion of its lease.
Not sure which vehicle finance option is the best for you? SFE Loans can help you achieve your business goals by finding you the best loan for your needs, assisting you with finance options on new and used assets including trucks, trailers and motor vehicles.