As finance brokers, we understand the importance of finding the right finance solution for your business needs. Whether you’re in the market for a truck, trailer, van, Ute, heavy equipment, or yellow goods, I want to make sure you have all the information you need to make an informed decision. That’s why I want to talk about Rent To Own Commercial Vehicle Finance, a financing solution that offers a number of key benefits and advantages for businesses that need to upgrade their vehicles regularly.
What is Rent To Own Commercial Vehicle Finance? Rent To Own Commercial Vehicle Finance, also known as a rental operating lease, is a financing solution that allows you to use a commercial vehicle without actually owning it. Instead, the ownership is retained by the lender until a future point where you can choose to purchase the vehicle or return it to the lender. This option is different from Chattel Mortgage and provides a flexible solution for businesses looking to upgrade their vehicles regularly.
Key Features and Benefits of Rent To Own Commercial Vehicle Finance
- Fixed Loan Interest Rate and Fixed Monthly Repayments: You can expect a fixed loan interest rate and fixed monthly repayments for the duration of the rental or operating lease period, giving you the peace of mind and stability of a predictable monthly cost.
- Flexible Terms: With terms ranging from 1 to 5 years, Rent To Own Commercial Vehicle Finance can be tailored to meet the specific needs of your business. The term is usually determined by the working operating life of the vehicle, giving you the flexibility you need.
- Off-Balance Sheet Item: Unlike other financing options, Rent To Own Commercial Vehicle Finance is classified as an off-balance sheet item. This means that your repayments will be recorded as expenses but the vehicle is not recorded as a liability on your balance sheet, improving your overall financial position.
- Tax Deductible: Your monthly rental payments may be 100% tax deductible as a business cost, providing you with a valuable tax advantage.
- GST Claimable: Depending on your specific circumstances, you may be able to claim the GST on your monthly rental payments.
- Upgrade Opportunities: At the end of the rental term, the lender retains ownership of the vehicle, providing you with the opportunity to upgrade to a new commercial vehicle without the hassle of disposing of the old one.
- Negotiate a Purchase Price: In some cases, you may have the opportunity to negotiate a purchase price with the lender to buy the commercial vehicle at the end of the rental agreement period.
Why Choose Rent To Own Commercial Vehicle Finance?
Rent To Own Commercial Vehicle Finance can be a very effective finance solution for many businesses, especially those that need to upgrade their vehicles regularly. As a finance broker, I recommend that you consult with your accountant to determine if this option is right for you.
Your Next Steps
If you’re interested in learning more about Rent To Own Commercial Vehicle Finance and how it could benefit your business, I encourage you to get in touch with me. As finance brokers, We’re here to help you understand the various financing options available to you, in plain English. So, if you’re ready to explore your options and find the right financing solution for your business, give me a call today!
