There are a diverse finance options available. You can select whichever suits you and your budget.
Car Loan:This loan is advisable for individuals only. It takes care of the full cost of buying the car plus the warranties, the on road cost and loan protection for the car loan too. Car loan differs from a personal loan in a sense, when the car is exchanged, sold or written off, then the loan has to be paid in full. The benefit of a car loan is that the interest rates are less than a personal loan. Car loan s are available for new and used cars also. Depending on the term and amount borrowed, a car loan can be paid off in regular repayments.
Car Finance Lease: One of the easiest options for a business whether buying a new or a used car. While budgeting the repayments throughout the lease, you get to own the car at the end of the lease. This is possible as there are fixed terms and interest rates.
Novated Lease: This option is catching up quickly as it benefits both the employer and the employee. This is an agreement between the employer, employee(namely you ) and the financer where the responsibility of paying the lease is with the employer. With this agreement, you own your car and can even take it if you happen to change your job.
-Can own the vehicle at the end of the lease.
-Can be for private use only (i.e. only for you)
-If your employer agrees you can lease more than 1 car.
-Can be financed with pre-tax dollars.
Advantages for the employer.
-On termination of the employee or the lease, the car is the employer's responsibility.
-Adds value to the remuneration package of the employer.
Operating Lease: There is no purchasing involved in this option, it's only a rental agreement and when the agreement is exhausted, you have to return your car. The advantage in this option is that there is a fixed amount that is known at the beginning. It's a great option for businesses as you can budget the cost of your new car.
Commercial Hire Purchase: In this there are considerable tax benefits as you can claim the interest repayments and the depreciation value of your car. As the car prices go on increasing, in CHP you have an option of deciding the final amount to be paid at the time of purchasing your car. It is known as a 'balloon payment.'