A company car loan is worth taking out when the company has a certain market status – at least on a semi-annual basis, no own contribution to buy the car and wants to settle down Commitments for more than 5 years.
For small and medium companies
A company car loan can be a good solution for the external financing of such a purchase if entrepreneurs depend on paying out installments. In the case of leasing, the leasing period of the car may last from 2 to 5 years, while for a loan it may be extended up to 8 years. The borrower has the option of financing via a bank loan, as well as the purchase of a used car, although his age cannot usually exceed 10-12 years. Some lessors do not allow you to lease a used car.
The limitation in terms of crediting the purchase of a vehicle is that banks require potential borrowers, good financial standing, a certain market stability – at least on a semi-annual basis – and a creditworthiness in a certain amount. For small and medium-sized enterprises, especially those starting business activities, it is often impossible to meet such assumptions. Leasing will be a better solution for them.
Benefits of credit
Contrary to appearances, today credit procedures do not take as much time as they did a few years ago. Banks specializing in car loans offer the possibility of completing all formalities related to the granting of credit and customer verification, even in hours. You do not need to visit a bank outlet, and all documents can be signed at the vehicle showroom. In stationary branches, customers who have completed documents can conclude a loan contract for a car purchase in two hours.
Another benefit resulting from the decision to take a loan to buy a company car is the possibility of carrying out such an operation without own contribution. Although in this case you have to take into account higher fees charged by banks, it is an alternative for those entrepreneurs who need a car and do not have free funds financial expenses to cover the own contribution required.