Car finance on commercial vehicles
Trying to decide how to finance any new car purchase can be an arduous task, but when you’re buying a new commercial vehicle for your business, it can be even trickier. Do you finance it personally and keep the van as a personal asset, pay in cash, use a company loan or credit card or opt for a finance package?
Fiat Professional’s finance options introduce a whole new level of flexibility whilst keeping the choices straightforward, whether you’re looking to buy a Doblò, Ducato or Fiorino Combi. Each different option has its own benefits, allowing you to choose what’s best for you.
The simple hire purchase option allows you to choose your vehicle and the amount of deposit you wish to pay, and spread the rest over anywhere between 12 and 60 months, which gives you the benefit of spreading the cost and owning the vehicle outright at the end of your arrangement. It makes budgeting easy, gives you flexibility and full ownership at the end of your agreement with no deferred lump sum payment. For business customers, you can even offset interest charges against tax, making the purchase even more attractive.
If you want to lower costs further, you could opt for a balloon hire purchase, which will lower your monthly repayments and add the difference to a balloon payment at the end of your agreement, essentially sandwiching your agreement with two deposits rather than having to pay it all upfront. You regular payments are reduced further, putting far less month-to-month strain on your business and giving you time to save up the cash for the final balloon payment.
If you’re not worried about ownership, a contract hire arrangement allows you to choose the vehicle you want to drive, agree an annual mileage and hire it for anywhere between 24 and 60 months. Because the vehicle is technically purchased by Fiat, they claim the VAT back and you get to hire the car with an effective 20% discount. At the end of your arrangement, you can simply return the vehicle, choose another one and start again. Your road tax is included and you can even opt for a maintenance package to keep all of your running costs in one easily budgeted monthly payment.
Whichever option suits you best, you won’t have to worry about how you’re going to finance your new commercial vehicle purchase. Fiat offers the ultimate financial flexibility, giving you complete choice and control.
