Business Car finance

Posted on February 2, 2009

Everyday we read about slow car sales and the discounts car dealers are offering. Combine that with historically low interest rates and now could be a great time to look at financing a new car, or many other types of business equipment. It costs nothing other than your time to look into the potential savings. Alliance e-finance can organise an obligation free pre approval for you and you can go shopping with confidence.

What are my options?

If you are using your vehicle for income generating purposes you can finance your vehicle for business use. Alliance e-finance can assist you with a number of products depending on your individual circumstances.
To ensure you have taken full advantage of any tax incentives that may be applicable to you it is important that you seek independent financial and tax advice. Our products include:-

• Commercial Hire Purchase (CHP): Is aimed at Clients who wish to guarantee ownership at the end of the term. It offers flexibility as it allows you to select the contract term, decide whether you would like to include a deposit and nominate a balloon payment (final instalment). This ensures you can structure the repayment to suit your budget. Tax benefits regarding the interest charges and depreciation may be applicable. Your repayments are also fixed for the term of the contract, taking the worry out of budgeting.

• Finance Lease: Another flexible product aimed at customers looking to acquire a new vehicle without tying up any valuable working capital. You have the benefit of an agreed residual payment which will lower your monthly repayments versus other traditional loans.

• Novated Lease: A Novated Lease can be beneficial if you are an employee or employer. An employee seeking tax benefits may find a Novated Lease appropriate and an employer looking for a cost-effective way to add value to employees may find it suitable.
  A Novated Lease is a three way agreement between the employer, employee and Alliance e-finance. A Novated Lease allows the employee to pay for their vehicle from pre-tax salary.

What should I do now?

If you are an existing Client, contact Alliance Equipment Finance to speak to your Relationship Manager or if you are a new client, click here to complete an online application. Alliance Equipment Finance staff will then organise your application to get the process started. From here it is a matter of shopping and negotiating for the best deal on the price of your car with the comfort of knowing your finance has been taken care of. Once you have agreed on a vehicle, advise your Relationship Manager. Alliance Equipment Finance staff will then ensure that formal approval is received and will liaise with you and the dealership to have the paperwork organised.

Important

All the details provided above are for indicative information purposes only. It is important that you consider your individual circumstances and understand the accounting implications applicable to you before deciding which product provides the greatest benefit.