As a business owner, you are responsible for managing many expenses. From inventory to employees and operating equipment, there are many things you need to stay on top of. For many businesses, vehicles are an essential part of their business as they require them to meet with clients or to complete day-to-day operations. When you need a vehicle for your business or even a fleet of vehicles, you may wonder if it is possible to finance a car through your business rather than as a personal vehicle.
At Autorama, we have helped countless business owners find used cars for sale that suit both their personal use and business use needs. There are a few things to consider when looking to finance a vehicle for your business. In this post, we outline what you should know about financing a used car for your business and what other options you might wish to look into.
We are always here to help you find the best used vans for sale and used SUVs for sale to help you keep your business moving. Contact us today to learn more about car loan rates and let us help you find the ideal solution for both your business and personal auto needs.
How to Finance a Car under Business
If you are looking to purchase a vehicle for your business and finance it through your business, you’ll need to have a few documents in order. In Ontario, you need to have a Registrant Identification Number (RIN) to have a vehicle registered under a business. Beyond needing this to have your business be the owner of the vehicle, you’ll also need to apply for financing through the business rather than through your personal credit.
Business auto loans work differently than personal auto loans. In many cases, you may be able to be approved for more through a business than through your personal profile. However, every business’s circumstances may differ. We recommend contacting a member of our sales team to learn more about financing your vehicle through your business.
Should You Lease a Car Through a Business?
Many business owners look to leasing their vehicles to keep operating costs lower. Though this may be a good option for some businesses, it is important to note that leasing is generally more expensive over time. When you are looking to find a vehicle that suits all of your business’s needs and is reliable, a used vehicle could be a more cost-effective option. Used vehicles are less expensive than new vehicles and monthly financing payments may be comparable to lease options for new vehicles.
There are many considerations when deciding how to finance a vehicle through a business. Contact an expert team member at Autorama to learn more about how to finance a car under business accounts and ask your accountant about what option may be the best choice for your business. When you’re ready to get a car you love for your business, Autorama is here to help.