If you own a business, whether big or small, you would know that having a car is important.
But choosing a car isn’t easy. You might consider buying or leasing a vehicle through your business rather than buying it outright. This means that your car would be under the name and ownership of your company.
At the end of the day, the right vehicles are necessary for the functioning of your business; offering mobility and support to help you operate successfully. Overall the process of buying or leasing a car through your business is similar to that of buying it as an individual. But there are several options available for businesses to help cover the cost of the vehicle.
According to corporate finance loan experts Maxiron Capital, it is important to think about the timeline of your needs, saying “as cars have become more expensive, car loans have become longer. It is favorable to think about the best time to buy a car to consider your loan options. The prices of vehicles vary through months and even days. Less price for a car means less loan payment. This can help you save thousands of dollars.”
If you’re thinking of securing a car loan through your business, here’s what you want to know.
Understand Your Credit Score
Before you get a car loan, you have to check your credit report and score. It is better to maintain good credit to secure a loan. In case of a car loan, banks tend to help you even if you have bad credit because they can take over your car if you don’t pay. Car loan lender Credit Capital advise, “having a bad credit also means paying more loan back though, so retaining good credit ultimately means having access to better loan options”.
Allocate a Budget
Determine how much you are willing to spend on your business vehicle. Look for complete plans with down payment and monthly installments. Calculate the total too as some dealers can make a car look affordable but the total cost including all the payments can make it costly in the long run.
Classic car experts Chevy Red Hire explain the importance of budgeting for insurance, saying “car loans are a major part of your monthly budget. By opting for a model with a high safety record you may be able to reduce costs. In addition, opting for an older model can also reduce insurance costs without sacrificing overall efficiency.”
Shop on Early Weekdays
Visit car dealers on the early weekdays of Monday, Tuesday, and Wednesdays; as they are the least busy days and you are more likely to get the best deals available. Dealerships tend to be crowded over the weekends making these times more of a challenge. This would cause the dealers to pay less personal attention to you and create an increasingly difficult context in which to negotiate.
Whenever a new model is introduced in the market, many buyers are attracted. The increase in demand to buy these new models causes dealers to clear off their lists from the previous models to make space. Dealers tend to reduce the prices of previous models as soon as new models hit their stores. So it is a highly advantageous time to buy or get a loan for your car.
The team at PNG Solutions rely on their cars to service their clients and believe you can also use model changeovers to drive away in a newer model, saying “when you lease a newer model car you only pay the car’s depreciation for the lease period, not the value of the car itself. Because of this your monthly payments are still typically lower compared to other forms of finance.”
End of the Month
The end of the month is the time when dealers have the opportunity to make a good deal. They have to complete their sales quotas and hit their KPIs to earn a bonus and can offer you good prices on cars as a result. Here you have to depend on your luck as well to see if the salesperson has sales left to make for that month to earn his incentives, but applying at the end of a month can help you save thousands.
Getting a vehicle can help open up new opportunities for growth for your business.
Whatever loan type you decide on, try to limit your car loan payment to 48 months and no longer than this. As this period extends, it means you are paying more.
When you enter a dealership, remain focused and by following the tips mentioned above you’ll be tipping the scales in your favour towards getting the best price and deal possible.
Do you have any car loan tips? Let us know in the comments!