When you’ve got a vehicle in mind and ready to finance a car online, it can be difficult to know where to start. There are many options available for business owners looking to finance their next purchase. In this blog post, we will discuss some of the most popular types of lending available and help you figure out which one is best for your situation!
Chattel Mortgage
A chattel mortgage is a type of finance product that allows the borrower to purchase an item by giving a lien on that item. The lender owns the property until it is paid off in full.
This type of financing can be viewed as being similar to leasing, but with more privileges. Chattel mortgages are good for small businesses looking to invest in a new vehicle or other assets and have trouble coming up with the upfront cash.
Commercial Hire Purchase
This form of business financing is when a borrower pays for an item in instalments with periodic payments to the lender. The ownership of the vehicle is not transferred until it has been paid off and this type of financing can be helpful if you want to keep your current vehicle as collateral.
Novated Lease
This type of financing is when the vehicle’s usage rights are leased to an individual for a fixed period. This means that you can purchase a new vehicle while not having to pay any money upfront and instead, making monthly payments on the lease amount with no risk in terms of depreciation or resale value.
Operating Lease
This form of finance is when the vehicle remains in possession of the leasing company until it has been paid off. This type of financing can be beneficial for those who want to keep their current car because its depreciation and resale value will not affect them while they are still paying for it.
Overview
There are many different financing options available to choose from when you are looking to buy a new vehicle. It can be difficult to decide which one will work best for your situation, but through reading this article, you should have a better idea of which type of finance might be the best for you!
