Business Car Finance
Businesses need a fleet of cars to run operations and purchasing a fleet of cars can cost a lot of money. Small businesses that need a few cars for key employees and for basic operations, often find it hard to purchase vehicles due to monetary constraints.
While one may believe that large companies do not need loans to purchase vehicles, the truth is that most large companies prefer to lease cars since this means lesser man power to take care of purchased vehicles.
When businesses cannot purchase cars or choose not to spend too much manpower on managing vehicles, both small and large businesses often choose to lease vehicles from lenders or companies that offer
- Novated Lease
- Chattel Mortgages
- Car Hire Purchase or
- Other Financial Agreements.
There are many benefits of opting for vehicle lease agreements and these benefits include, giving employees vehicles to use without purchasing them, getting tax benefits, keeping a residual or balloon payment for the end of the term to pay lower rentals and having the option to purchase, return or trade in the car at the end of the term.
Car lease agreements can be defined as an agreement between a buyer and a seller where in the buyer agrees to take a lease on the nominated asset for an agreed term while paying a rental amount.