There are various leasing options available to business buyers who want to use a car but not purchase it. Sole traders and small businesses that need to generate income from vehicles, can also benefit from such financial agreements. Depending on your budget and immediate needs you can chose from
- hire purchase of cars
- chattel mortgages
- novated lease agreements and
- low doc loans.
These days, most businesses are choosing to lease cars rather than outright purchasing them. There are many reasons for this, such as car lease agreements allow the buyer to use the vehicle without having to purchase it, the buyer can opt for a 2-5 year tenure during which he can use the vehicle while paying a rental fee and the buyer can add value added services to a leased vehicle.
Businesses that need a fleet of cars but do not have ready funds available to purchase the fleet of vehicles, usually choose to opt for Novated agreements or other such financial products.
Businesses also tend to opt for such financial agreements, since such agreements, do not require the buyer to take special care of the vehicle while using it. The vehicle does have to be returned in an acceptable condition, at the end of the term, otherwise the lender has the right to deduct a part of the deposit or charge a penalty for damage to the vehicle.
At the end of the term of the agreement, the buyer is given an option to purchase the vehicle, trade in, return it or extend the lease.
Most businesses can also enjoy a range of tax benefits from financial products such as Novated agreements and Car Hire Purchase agreements.