Car Equipment loans for Business Professionals are possible for Lawyers, Doctors, Geologists to Engineers and Consultants. Majority of business professionals rely upon a car for business purposes. Most people need reliable cars for their career or business. Australian professionals often have to make the decision, to pay cash for their car or do they preserve working capital and look to take advantage of cheap rates along with the many tax benefits of borrowing the money.
Equipment Loan for PAYG income applicants
Many borrowers choose car equipment loans for business professionals over tapping into their cash. Financing their vehicles through a chattel mortgage or an equipment loan is wise. Why not keep your money in your pocket and keep your options open for other potential opportunities to grow your financial position? These equipment lending facilities have often appeared to be only available for self-employed and business entities. But if you use your car predominantly for business purposes and your accountant can support this, then Equipment Lending can apply to professionals under a PAYG income. If the vehicle is for business purposes, then the lending purpose should align under the responsible lending guidelines.
Advantages of Equipment Lending Vs. Traditional Consumer Car Loans
Finance broker, Will Haylock, highlights that there are many advantages to car equipment loans for business professionals. “Most significantly your interest rates for equipment loans are far lower than your personal and consumer car loan rates. The loans also have far more flexibility in terms of repayment structure. These lending products also have the ability to have residual or balloon payments at the end of the term, allowing for regular repayments to be more affordable. Most lenders will consider a maximum 30% balloon for new car assets. Another popular reason for utilising an equipment loan to purchase your work car is that the banks encourage more friendly lending requirements for new cars. And this goes ‘hand in hand’ with the associated risk and costs of maintaining a new car as opposed to a used vehicle”.
If you finance your car it pays to seek an expert broker who specialises in Equipment Lending. The right finance broker will ensure your equipment loan is cost effective and efficient with a hassle free application process.