Business Car Finance
Your dream car seems to be staring at you all day. However, you cannot just seem to afford the car. At best, your savings will take another one to three years before it is adequate to purchase the car. So, you have resorted to giving up on your dream car. Well, that does not have to be the case with you. You can now take advantage of business car finance to get yourself that dream car you believe you deserve.
What Is Business Car Finance?
This is a finance option that allows you to skip long term savings when looking to purchase your dream car. With this option, you get access to a lender who provides funding for the car. In turn, you commit to making regular repayment, usually monthly, to discharge your obligation under the arrangement.
Aspects of a Business Car Finance
When getting a business car finance, there are certain aspects you need to consider. They include:
Variable vs Fixed Loans
This involves the relevant interest rate attached to the loan arrangement. Typically, the most popular option is the fixed rate. With this option, your interest obligation remains the same throughout the arrangement. On the other hand, there is a variable interest rate that is less popular.
With this option, there is less consistency and certainty. However, it allows you to enjoy a lower interest rate in the event of a drop.
Additional repayment is a fair way to reduce the overall interest payable on the loan. This is because it invariably reduces the loan term. For instance, you could increase your repayment schedule to fortnightly from monthly. In turn, this would mean that you complete your payment faster than ever and avoid the interest associated with the later years.
As such, it would be best to opt for options that allow you to make additional repayments without any penalty.
100 Percent Finance & Deposits
You can always borrow as much as 100 per cent of the total cost price of your car. However, we recommend that you provide at least 20 per cent of the cost price through either trade-in or cash deposit.
Bad Credit Car Finance
Obtaining a business car finance typically needs you to have a good credit score. As such, in a case where you have less than the average score – 600 –, you might find it difficult to obtain business car finance. Regardless, you can always opt for bad credit car loans. However, you will need to pay a higher interest rate in return. This is to compensate for the higher risk that the lender bears.
Low Doc Car Finance
If you are an entrepreneur or start-up, getting financing can be quite difficult. In most cases, you might not qualify and meet some of the requirements if you are a sole trader. This is due to the absence of sufficient documentation. However, you can avoid this with a low doc loan which requires to submit only minimum documentation.
Business Car Loan Calculator
This is a tool that allows you to determine your repayment obligation. All you need to do is input the relevant details. This will include how much you intend to loan, the interest rate, the loan term, and the repayment frequency. Afterwards, you should get your repayment obligation.