Business Vehicle Financing
Many a time, a company or business organization needs to purchase expensive vehicles for the purpose of meeting the various business requirements. Business vehicle financing is a viable option in such cases. The construction companies, sanitation companies and several other companies require business vehicle financing to meet the various requirements of their work.
The world of business vehicle financing, at times is quite confusing. Therefore you need to give vital importance for getting loan to buy business vehicles. There are some reliable financing companies that provide you better terms for business vehicle financing through simple application procedures and fast approval of applications.
There are number of business vehicles that require financing. Ambulance financing may be required by medical industry. An ambulance should ideally contain the latest medical equipment. Since the cost of ambulance is near to six figures, it is often essential to go for loans. However it is important to select a reliable financing company that offers immediate loan approval without any cumbersome procedures.
Business vehicle financing is essential in case the company wishes to buy a garbage truck. A recycling garbage truck is often essential for collecting specialized wastes like glass, paper, aluminum, asphalt and plastics for the purpose of recycling. These trucks are essential for some industries that need to recycle the wastes of the manufactured products. The recycling trucks are very expensive and thus help of financing companies is essential.
Business vehicle financing is also essential for buying hearse if your business is providing services for funeral purposes. Driving a hearse down the road followed by cars always brings respectful feeling. But you may not have even heard the word ‘Hearse financing’ since hearse is a limited use vehicle. However some reputed financing companies provide hearse financing too. You can get one or many hearses from such companies without any tiring procedures.
Boom truck financing is required for a business that provides tree trimming services or loading and unloading tasks. Boom truck is far better than heavy cranes. However it is expensive and so it is important to go for loan to get the boom truck for your business purposes.
Business vehicle financing is particularly important in the construction industry. Mixer trucks are used in the construction business for mixing and pouring concrete and so on. They are very costly and so mixer truck financing is a must. However, it gets very difficult to acquire financing for buying mixer trucks as they are used for very limited purposes. But some legitimate financing companies provide loan for mixer trucks too.
Commercial vehicle financing is essential for the purpose of buying buses, vans, dump trucks and bull dozers for meeting the various business requirements. One needs an expert’s help to get financial help for acquiring commercial vehicles. Commercial, recreational vehicles are often expensive and so they require the assistance of financing companies. Before going for a loan, make sure that the financing company has been in existence for longer period of time. Also ensure that there is no cumbersome procedure for getting the financial help. Fast approval of procedures and lower interest rates characterize good business vehicle financing companies.
Chris Fletcher is an Account Executive at a national equipment finance company providing new and used Business Vehicle Financing at http://crestcapital.com/catalog/Business_Vehicle_Financing as well as financing for many other equipment types and industry verticals.
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March 16th, 2009 at 2:57 pm
As with many things, don't be blinded by the tax implications of the decision. Tax impact needs to be considered of course, but should NOT be the overriding consideration. It's just one of many factors.
Although you can take a business expense for the finance charges, the the total out-of-pocket cost for financing will still be higher even with the tax savings. The highest tax bracket is 35% but most taxpayers will see savings of 15% – 28% at most. From that standpoint, paying cash will make more sense.
However, other factors come into play, not the least of which is your cash-flow. Paying cash ties up capital that maybe could be better used for other business development. This is something that is often overlooked by the novice.
If you wind up having to take out a loan for other business purposes as a result of paying cash for an expensive asset you may well wind up paying a higher interest rate for an unsecured loan or having to guarantee it personally — other things to think about.
If cash-flow is a consideration and ease of bookkeeping is a factor, leasing a vehicle may be just the way to go for a business vehicle especially if you can accurately predict your mileage requirements. Leases usually SUCK for the average wage-earner but are often an excellent option for business use.
Resist any temptation to use the business vehicle for personal use, especially if you take a Section 179 deduction for the full purchase price. You don't have to account for business vs personal use, keep mileage logs, or other tedious bookkeeping tasks. If you own other vehicles for personal use, the IRS won't question your claim of 100% business use; just play by the rules and you'll be fine.
If your wife uses the business vehicle for business use, that's not a problem. But if she hauls the kids around or goes shopping with it — or if you do — you're risking having its use challenged. Bending the rules occasionally probably won't trigger an audit, just don't let it become a habit.
March 16th, 2009 at 4:07 pm
Some states allow for a bonded title. Without knowing what state you are in, I couldn't tell you. The bank should be more than happy to help you out.
With a bonded title. in essence, the state has said, although you can't prove that you own the vehicle, you will receive a title for it anyway, if in the next three years, the original owner comes to dispute it, they can certainly do that. After three years the bonding is released and the car is yours.
In this instance, a bonded title with the bank having a lien, should be the route to take.
once you have the title, bonded or not, then the rest should be easy.
Keep in close contact with the dealership, if they go bankrupt, you really don't need your vehicles tied up in such a mess.
March 17th, 2009 at 12:13 am
Any time you have a repossession, voluntary or not, it will seriously hurt you credit score for up to 7 years. I would suggest trying to sell it yourself for as much as you can, paying off what you still owe, and getting a new one. You will lose some money, but in the long run it will be better because a bad credit score will effect everything from car insurance rates to mortgage rates. This could end up costing you thousands in fees in the long run.
March 17th, 2009 at 3:27 am
sorry, none that i can think of…
March 17th, 2009 at 11:52 am
Your accountant is right. But as a business owner myself, I prefer leasing a car to my name and get income tax breaks in the end. Business leasing is only good if you are getting a fleet of vehicle for use by your employees, you get discounts on gas too, but now a days, you can basically get the same benefit from your business credit cards so save some money on the insurance and keep your personal vehicle under your name.
March 17th, 2009 at 11:50 pm
Your best option is to get financing yourself and pay off the contract.
Even if the deal is "unwound" you will not get your trade-in back in most cases. There is a very good chance that it's already been sold. If this happens, you'll get whatever they allowed you on the trade.
For obvious reasons, you should NEVER sign a "spot delivery" deal. It should never take longer than 24 hours for an answer on financing a car note. With modern automated credit processing, 15 minutes is more like it. Here's a link specific to Arizona: http://phoenix.about.com/od/scam1/a/spotdelivery.htm
You don't have any right to "restructure the deal" for a lower price or to change any of the other terms. Your only option is to get your own financing and pay off the contract. I do this all the time to get rebates offered in conjunction with financing offered by the dealer.
More than likely that contract stated that the dealer could request the vehicle back within 5 business days if they could not get financing. The 5th business day will be June 5, 2006. If they don't demand the vehicle's return by then, the deal will stand as written. If they haven't located financing by then, they'll own the paper themselves and you'll make your payments directly to them. However, if you left the dealership with open terms on the financing, you have made a serious error in judgement and are probably being set up for a SCAM.
Check with a local attorney for advice specific to your situation. You may also want to contact the Arizona Attorney General's office regarding this SCAM.
March 18th, 2009 at 1:29 am
If you can't afford to keep the truck,Sell it or let your ex have it if it's possible, either way do it soon. (Don't think of it as giving the truck to your ex, since what you're really giving him is the monthly payment.) Don't default on any like another writer suggested — that would be a VERY big deal. It will create a stain on your record which will hurt your ability to get financing in the future, and they will repossess the truck anyway if you default on that. If you need a vehicle, get a smaller, cheaper one that's used and is easier on gas. Call the hospital and tell them you can't afford to pay the $5,000, and start negotiating with them. They will negotiate with you because they'd rather see some of the money than none of it.
Also, what are the positive lessons about yourself that you can get out of this situation? (Not lessons about your husband, but lessons about you.) You're not going to have to live with your husband anymore but you're going to live with yourself the rest of your life, so what can you do differently — both with your thoughts and your actions — that would keep you from getting into this kind of situation ever again? Write them down on a piece of paper.
March 18th, 2009 at 9:04 am
March 18th, 2009 at 9:52 pm
Ford no longer has an HR Department, Finance Department, or Administration/IT Department. These functions are now performed solely by robots.