4 Financing Tips for Purchasing a New Fleet of Work Vehicles
Whether you have a home repair business or other type of company that relies on a fleet of work vehicles, you know how important it is to not only have high-quality vehicles but also be able to purchase them at an affordable price. In most cases, you will be financing your work vehicle purchase. To do so in a way that saves you the most money, here are four tips to keep in mind.
1- Dealership Financing
Since many car dealerships work closely with local businesses when it comes time to purchase a new fleet of vehicles, using this option may save you plenty of money. Dealerships are often very receptive to these types of purchases since they know they will make a large amount of money when several vehicles are purchased simultaneously. The biggest advantage you will reap from this option is using a hire purchase agreement you get from the dealership. This will give you a clear repayment period, tell you of any fees that will need to be paid, and specify your warranty type and service agreements for your fleet.
2- Consider a Fleet Acquisition Loan
If you are not satisfied with the deal you get from an auto dealership and a bank’s interest rates are too high, look into getting a fleet acquisition loan from a finance company that specializes in auto loans for businesses. Since they want to make sure they rather than a bank get your business, they usually offer lower interest rates, flexible loan arrangements, and require little or no upfront money for a down payment.
3- Extend Your Mortgage
If you currently have a mortgage on your business, you can use what is called a mortgage extension to finance your new fleet of work vehicles. An option often overlooked by many business owners, it can save you lots of money in the long run, especially if you plan to keep your new work vehicles for a decade or more. Compared to many other car financing options, the interest rates for a mortgage extension are much lower. Even though mortgage rates have risen in recent months, this is still a very viable alternative to traditional loans.
4- Consider Leasing Your Vehicles
Should you be on a tight budget but still need to purchase a new fleet of work vehicles, entering into a lease agreement may be your best option. Since leasing companies buy a large number of vehicles each year, they have tremendous leverage and purchasing power within the automotive industry. As a result, they can offer low prices and spread out the amount of your purchase over a longer period if needed. Best of all, when your lease is due to expire, you can either return the old vehicle and lease a newer one or buy the older vehicle at a much lower price.
By checking into these options and comparing and contrasting their pros and cons, you can emerge with a new fleet of work vehicles that will serve you well for many years while also saving you money.