At iCREDIT, we offer various options for business car finance in Tweed Heads. While your dedicated finance manager will assist you in making a perfect choice, we have prepared some comparison information to understand the financing options available to you when looking at getting a business car loan. Let us look at the differences and suitability of a chattel mortgage versus hire purchase versus a lease.
The Differences Between A Chattel Mortgage, Hire Purchase And Lease
The main differences between these three loan types come down to the level of ownership of the business’s asset (in these examples, we will be looking specifically at car loans) and the various tax benefits or degrees thereof.
- Chattel Mortgage – provides financing that offers full ownership and additional tax benefits while using the asset as security against the loan
- Hire Purchase – also known as an instalment plan.The asset is purchased by paying an initial instalment and repaying the balance of the asset plus loan interest over a period of time at the end of which ownership of the asset will be transferred to the purchaser
- Lease – the asset is owned by the lessor and is “rented” until the end of the term, at which point ownership is often negotiated
How Do I Choose?
The right financing option will depend on the type of business you operate, your tax position, your finance and cash flow circumstances and the vehicle(s) you want to purchase. Your finance manager will be able to go over the various factors from tax implications to down payments,interest and ownership status, i.e. when the asset will be transferred to your books.
Get Your Obligation Free Quote Today
At iCREDIT, we are dedicated to providing our clients with tailored solutions for all their financing needs. From home loans to business car finance in Tweed Heads, our team has access to hundreds of loan products through our panel of specialist financiers. We offer the advantage of national buying power and the convenience and peace of mind that comes with a fully comprehensive one-stop vehicle financing solution. Talk to us today by calling 1300 350 188 or use our online contact form.