There are a number of ways you can purchase a car, truck or other vehicle for your business. Apart from purchasing it outright a business owner can also choose from the following other options;

1. Chattel Mortgage

Under a Chattel Mortgage a finance company lends money to the customer to purchase a car or other motor vehicle (the "chattel"), and the customer makes regular repayments.  The customer takes ownership of the vehicle at the time of purchase, but the finance company also takes out a "mortgage" over the vehicle by way of an ASIC-registered Fixed and Floating Charge to provide security for the loan. Once the term of the loan is completed and any residual (balloon) value is paid, the finance company removes the Charge, giving the customer clear title to the car. Alternatively, the customer can "trade in" the vehicle or re-finance the residual value.

2. Hire Purchase

Commercial Hire Purchase is where a finance company purchases a car or vehicle or asset on behalf of the customer, and then gives the customer use and possession of the car ("hires") in return for regular payments. Once the final payment has been made and any residual (balloon) value paid, the customer takes possession of the vehicle ("purchase"). Alternatively, the customer can choose to "trade in" the vehicle, or re-finance the residual value.

3. Rental Agreement

An equipment lease/rental agreement is an agreement where a lessor (the owner of the equipment), permits a lessee to use the equipment in exchange for monthly lease payments. The equipment leased can be machinery, vehicles or any other equipment. The equipment remains the property of the lessor for the term of the agreement. However, most rental agreements will allow lessees to purchase the equipment for a fixed residual amount at the end of the term. The main advantages of rental agreements are that 100% of all lease payments are tax deductible by the business, and that you have maximum flexibility as you can upgrade equipment at the end of each term.

At the Business Finance Centre we can arrange finance for all vehicles as well as referring you to wholesale vehicle brokers who can often secure a better trade or buy price for your preferred vehicle.