Commercial car loans are available from a variety of lenders, including banks, credit unions, and online lenders. The process for getting a commercial car loan is similar to getting a regular auto loan, but there are a few key differences.
Make sure you meet the eligibility requirements
If you’re looking at buying a car through a business, you generally need to be a business owner or have some other type of proof that you will use the vehicle for business purposes. You may also need to have good credit in order to qualify.
Gather the necessary documentation
To get started, you’ll need to gather some documentation, including proof of income, business licenses, and tax returns. You’ll also need to have a good credit score, as commercial car loans tend to have higher interest rates than regular auto loans.
Shop around
Once you’ve gathered all the necessary documentation, you can start shopping around for the best loan terms. Be sure to compare interest rates, loan amounts, and repayment terms before choosing a lender.
You can easily compare all of your best loan options in one place by using an online vehicle loan comparison website. Get pre-approved
Once you’ve found the perfect loan, you can get pre-approved by filling out an online application. This will give you a better idea of what interest rate you’ll qualify for and how much money you’ll be able to borrow.
Choose your vehicle
Once you’ve been pre-approved, it’s time to start shopping for your new commercial vehicle. Be sure to take into account the cost of the vehicle, as well as the interest rate and monthly payments you’ll be responsible for. You can shop for a new or used car from dealerships, private sellers and auctions.
Decide which type of loan you need
There are two main types of commercial car loans: secured and unsecured. Secured loans require collateral, such as a down payment or a piece of equipment, while unsecured loans don’t require any collateral. You might also like to consider what the most tax-effective option is.
Some popular commercial finance options include chattel mortgages, hire purchase arrangements, novated leases and ongoing leases.
Read the fine print
Once you’ve found a lender and decided on a loan type, it’s important to read the fine print before signing any paperwork. Be sure to understand the interest rate, repayment terms, and any fees or charges associated with the loan.
Take your time
Getting a commercial car loan is a big decision, so make sure you take the time to shop around and compare your options before choosing a lender. Don’t feel pressured into buying the first car you see – it’s far better to take a bit more time to ensure the car (and finance option) you decide on is perfect for you and your financial and personal situation.
Apply for the loan
Once you’ve found the right lender, you can apply for the loan online or in person. Be sure to have all of your documentation ready when you apply, as the process can take a few days (or in some cases weeks) to complete.
