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How to finance your vehicle requirements

What options do you have if you need cars for your business?

How to finance your vehicle requirements
How to finance your vehicle requirements. Image: Pixabay

If you have the type of business that has a need for vehicles and transport, then you’ll appreciate that the costs of running your fleet is one of your biggest outgoings.

In this article we take a look at the various finance options you have available to you.

Short-term loan

If you need to cover the costs of your vehicles up-front, then a short-term loan from a financial institution is a good way to quickly access the funds required. This type of auto loan is generally unsecured, but will attract higher fees and interest rates than other forms of finance that might be available.

Hire purchase

This is a common form of car finance. Generally there will be a small deposit required up-front, and then fixed monthly payments. The benefit of a hire purchase agreement is that it spreads out the costs of the vehicle, but at the end of the agreement you are left with the asset that you’ve purchased.

Leasing

Leasing your vehicles is another way of spreading the cost of the car out across an extended period. The difference between leasing and hire purchase is that at the end of the lease you do not own the asset. So your costs may be lower with leasing, however with hire purchase you will own the car at the end.


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