Do you need a car or a fleet of vehicles to run your business? A business car loan may just be the solution you’ve been looking for. This type of business car finance is designed to meet the needs of companies and small businesses in purchasing or leasing vehicles.

With the right company car loan, you can achieve your business goals sooner rather than later. If you are still on the fence, here are the top eight reasons you should get a business car loan:

Reason #1: You can get the car your business needs immediately

Businesses, especially those just starting out, may not have the funds they need for important expenses like car purchases. It could take months or even years to generate the funds needed to buy a vehicle or a fleet that your company sorely needs. This may put the company at a disadvantage which means it will take longer to get the funds necessary.

This is where business car loans come in. Business car finance allows business owners or entrepreneurs to purchase the cars they need right away. This can help your business in the long run by giving you the tools your company needs to prosper.

Reason #2: You will likely have increased purchasing power

With a business car loan, you will most likely have the opportunity to borrow a larger sum. A good loan gives you the chance to purchase what you otherwise won’t be able to afford. You can purchase a car or fleet that was previously out of your price range.

Using your larger purchasing power, you can make impactful purchases that benefit your business immediately and in the long term. You also won’t have to settle for less or subpar vehicles and equipment. You have the freedom to choose the vehicle you need which can end up helping increase the value of your business.

Reason # 3: You can grow your business

The right business car loan can help you expand your business and bring it to new heights. Using the funds, you can improve the mobility and efficiency of your daily operations immediately with new vehicles. You can react to market trends quicker and take advantage of your situation.

Growing your business is hard especially when you need to keep up with competitors. A business car loan could provide you with that extra edge; you can purchase the car you need to boost your company’s bottom line.

Reason #4: You can free up cash flow

Buying a car or multiple vehicles as a one-off purchase comes at a steep cost. This ties up your finances into one purchase which could be extremely limiting. With a business car loan, a business car purchase won’t be such a huge upfront cost. A loan lets you split the purchase of the vehicle over the course of a loan term and make regular payments.

As a result, you will have more cash on hand to spend on other business expenses. This can give you more control over your finances and allow you to spend your business funds freely. Be it adding more people on staff or getting more office space, you won’t have to worry about sacrificing other parts of the business for the car purchase.

Reason #5: There are various business car loan options

A business car loan isn’t limited to just one kind. There are various types of business car finance options available to meet your specific needs. Here are some of the different types of business vehicle loans:

  • Car loan –You will have full ownership of the vehicle right away and pay off the purchase in regular instalments over your chosen loan term.

  • Hire purchase – The finance company will purchase the vehicle on your behalf in full, and then resell it to you.

  • Chattel mortgage – You can use this loan to purchase any type of equipment for business purposes.

  • Finance lease – This is an agreement between the lender and the borrower wherein the lender buys the vehicle, and the borrower has the privilege to lease it.

  • Operating lease – This lease operates like a finance lease, except at the end of the contract term, you don’t have the option to buy the vehicle and the maintenance cost will be included in your monthly repayments.

  • Novated lease – You lease a vehicle on behalf of your employee, and then the lease cost will be deducted from the employee’s pre-tax income.

Whatever your situation may be, you can find a business car finance that can match your circumstances.

Reason #6: Flexible financing terms and conditions

There are plenty of flexible financing terms and conditions found within the various business car loan types above. You can find lenders that offer small business car loans that are catered specifically to small-scale companies or organisations. There are also ABN loans which are low-doc loans that require little financial documentation which is great for fledgling businesses.

Lenders offer fixed or variable interest rates, short or long loan terms, and fortnightly, weekly, or monthly repayments. You can choose what kind of loan structure you want. There are also plenty of business car loans with flexible features like balloon payments.

Reason #7: Tax benefits

A great thing about purchasing a business car through a loan is that you may be entitled to some tax benefits. The tax benefits you can get depend on the kind of loan you’re taking out. You may be eligible for tax deductions for interest payments on the loan, depreciation on the vehicle, vehicle-related expenses, and the like.

Car loan and maintenance costs can add up quickly. Being able to claim them on your taxes can save you a ton so always take advantage of these tax deductions. Make sure to consult with your accountant or a professional to ensure you meet the requirements for the tax benefits.

Reason #8: GST deductions

You may also be able to get GST deductions on the purchase price of the car. Usually, GST deductions require the vehicle to be used for business purposes only and the owner of the vehicle (sole trader or company) is registered for GST. The amount of GST you can claim depends on the purchase price of the vehicle.

Apply for a business car loan today!

Business car loans are useful financing tools for your business, whether you have a small, medium or large-scale company. We have finance specialists who can help you decide the best type of business car loan for your business.Call Aussie Car Loans on 1300 889 669 or apply online!

FAQ

What is a business car loan?

This type of loan allows borrowers to purchase a car to use for business purposes. It works like a typical loan where you pay back the loan amount with interest over a pre-determined period.

How does an ABN car loan work?

Most ABN car loan works as a low doc loan. Borrowers are required less documentation compared to a standard business loan. Most requirements are based on the borrower’s ABN.

What are the benefits of using business car finance?

With business car finance, you can purchase the vehicle you need for your business right away. You don’t have to wait until you’ve saved enough. Plus, a business car loan frees up valuable cash flow.

Can I get a small business car loan?

If you own a small business, you can get a loan that meets your financial situation and business car needs. Talk to a lender or broker to discuss your small business car loan options.

How can I use my company car loan to enhance my brand?

With a company car loan, you can help enhance your company’s branding by projecting a professional, reliable, and successful business. By improving your company's brand, you may see an increase in customer trust and attract more business.

Are there tax advantages associated with ABN car finance?

You may be able to deduct the interest on ABN car finance from your taxes. This depends on your eligibility, as well as other factors. Discuss the specifics with your accountant or a professional to ensure you can make the most out of any tax benefits.

What factors should I consider before getting a new business car loan?

You need to consider your business’s financial situation and the type of loan you want to take out. Understanding the needs of your business will help you figure out what kind of loan is perfect for your situation.

Can I own the vehicles acquired through business car loans?

It depends on the loan you take out. There are business car finance options that allow borrowers to own the car while others do not.

How do I choose the right business car loan for my needs?

Carefully weigh your options and read the terms of the loan carefully. It's best to talk to a professional for guidance like Aussie Car Loans. As a trusted broker, we can help you navigate the confusing world of business car loans and find one that suits your business needs perfectly.

Can I get a business car loan for used vehicles?

You can purchase a used vehicle with your business car loan. Buying a used car may affect the type of business car loan you can get. Discuss your finance options with a lending specialist or broker.