You need to buy a company car and you need to contract a suitable professional credit? We present the possibilities of financing which you are possible as well as their modalities.
Prepare your company car purchase project
To acquire a professional vehicle, be it a company car or a utility vehicle, there are several ways of financing.
Before choosing one solution over another, it is important to ask yourself the right questions:
- What is the nature of your project?
- What are your means?
- How often do you want to use the vehicle? How far do you plan to go?
- Do you benefit from tax benefits?
- Do you plan to replace the vehicle regularly?
The different types of financing possible to acquire a professional vehicle
After this definition and this first step of the preparation of your project of purchase of professional vehicle, you can study the possibilities which are offered to you.
This classic loan formula involves lending you money to buy the vehicle you need. You will then repay the amount borrowed with interest on a fixed schedule. By this means, the vehicle becomes official property of the company and is intended for professional use.
This credit, which is widely used for the occupation of premises or the acquisition of a company car, consists of having a bank or a financial institution buy the pro vehicle of your choice and then renting it to you by paying it a set amount of money. At the end of the term of the commitment, the professional may apply to become the owner of the rented vehicle, by lifting the purchase option provided for in the contract.
This formula is interesting and allows you to buy the vehicle for less than its value. In addition, leasing costs are recognized as an expense and are deductible from taxable profits.
The long-term rental of the company vehicle (LLD)
The professional who subscribes to the LLD is entrusted with a vehicle for a period ranging from 1 to 4 years. In exchange, he pays rent in the form of monthly or quarterly contributions, the amount of which is calculated according to the duration of use of the vehicle and the estimated mileage. Unlike leasing, the professional can not become the owner of the vehicle at the end of the contract; he either terminates the contract or signs a new one and is given another vehicle under the same conditions.
This formula has the advantage of allowing the professional to enjoy a new vehicle or in excellent condition. In addition, all costs of repair, maintenance, insurance and assistance are included in the offer and offered at preferential rates. The cost is fixed and facilitates cash management without impacting own funds. On the other hand, the professional hirer is engaged until the end of the contract and he can not cancel this one before the term. Thus, he continues to pay the rent for the vehicle even if it no longer has utility.