Business auto loan or lease? Both have advantages, but one is the better choice for your needs. This article explains some of the differences.
If you own a business and you need to finance a vehicle for the work you do, you have many options. Two of those options include business auto loans and leases. To decide between a business auto loan and a business auto lease, you should familiarize yourself with the details of each so you can choose the option that is best for your situation.
Here are a few things you should know.
What’s the Difference?
Both loans and leases have their advantages, and depending on what you are looking for, one will be the better choice.
The primary difference, however, is that with a loan, you will eventually own the vehicle you are financing. With a lease, you will never own the vehicle you are using unless you choose to pay off the balance at the end of your lease term.
When You Should Consider a Business Auto Loan
If you want to use the vehicle for an extended length of time, a business auto loan is often the better option. Not only are loans less expensive in the long run—they also allow you to treat the vehicle as your own.
When you qualify for an auto loan for your business, you can pay down the amount you owe gradually over time. The terms of your loan depend on a few different factors, but the monthly payments are usually lower than they are with a lease.
When You Should Consider a Business Auto Lease
In some situations, however, you could be better off leasing a vehicle for your business. If you are concerned about having to deal with obsolete vehicles, a business auto loan might not be for you. With a lease, you can upgrade your equipment every few years.
In the end, you will have to make the decision based on your needs as a business owner. Want to talk to someone who can help? Get in touch with us today.
Got Any Questions? Get in Touch with AA Bankers Today
The decision you have to make as a business owner depends on what you need to grow your company. Some people think that, because they have been turned down in the past, that it is impossible to qualify for a loan if they have less than perfect credit.
If you have been turned down for a business auto loan in the past, don’t stop trying to qualify for financing. At AA Bankers, we will help you work through the process.
Want to talk to a professional so that you can get your business back on the road? Contact the business financing experts at AA Bankers today so that we can schedule a consultation to go over your needs.
Don’t wait another second to take the next step in funding your business dreams.