As your business grows, reliable transport becomes more and more essential.
But when it’s time to add a vehicle or two to your business, you are faced with an important decision: should you buy, or should you lease?
iCREDIT can help you secure business car finance in Brisbane for delivering your goods, meeting clients or managing your mobile team.
Let’s explore some of the choices available to you so you can decide which approach is best for your bottom line.
Leasing
Leasing vehicles is becoming increasingly popular thanks to the relatively low investment commitment that still gives you all the benefits of having a vehicle at your disposal.
Leasing is very much like renting the car for a fixed period, with the option to own it at the end of the lease term. Technically, the bank still owns the vehicle during this time while you pay a regular amount to use it.
Leasing offers lower upfront costs, which allows you to preserve your working capital. This is particularly attractive if you can’t afford a large upfront investment. It also allows you to regularly upgrade the vehicle at the end of each lease term, which is ideal if your business needs change or if you want to have the latest models.
The leasing option also works really well for those businesses that want to benefit from having predictable expenses with a simpler path to expansion, especially in industries where having modern and reliable vehicles is essential.
Buying
Buying a business car through a chattel mortgage, for example, can give you ownership of the vehicle from day one. You will repay the loan over time while enjoying full use of the vehicle as you pay it off.
This is the more common structure for vehicle ownership and is popular among business owners who are looking to build long-term assets.
You can choose the buying option if you want to claim the GST on the purchase price, assuming your business is registered. Depreciation and other interest charges can also be tax-deductible.
The biggest benefit is that once the loan is paid off, the vehicle becomes fully yours and you don’t have to worry about any ongoing payments.
In essence, buying makes more sense if you plan to hold on to the car long-term and want to maximise its resale value. This option is best for established businesses with the ability to make a deposit and benefit from asset ownership.
If your Brisbane business is looking to expand and in need of car finance, contact iCREDIT or apply online now.