RENT TO OWN CARS
vs BUSINESS LOANS
When we think of commercial vans and cars, we don’t think Rent To Own. We think huge expense, followed by an “asset” that is a mountain of debt for our business and personal finances. We need to justify why we would need the vehicle and “Um-ing and Ah-ing” if we can afford it. Then there is finding a bank or credit union to look at our 3 years of tax returns and B.A.S statements to determine whether it is a successful business or if it’s failing, and whether or not we can afford a new van or car.
You know your business, and what you can afford. The 3 options for purchasing a new vehicle have their pros and cons. Let’s go through them one by one in order for us to get a grasp on what is best for your business.
3 WAYS TO AFFORD A WORK VEHICLE
- SAVE OR USE YOUR OWN CAPITAL
This is a very straight forward concept, have the money, buy a vehicle. However, even the most successful business don’t necessarily have cash on hand to buy a commercial vehicle straight off the lot and sometimes, for the sake of cashflow, many businesses don’t want to tie up this capital. Then, unless your invoices are always paid in full and on-time or you have the capital to invest (either through a 3rd party investor or your own savings) purchasing a vehicle outright can be harder justify. Besides, if you have spare capital, you could be investing in things that grow your productivity and profits in a more direct way.
- BANK LENDING/LOANS
Banks are more than happy to give you money (after combing through your finances) because that is their business model. Suck you in, make you sign a no-exit clause document for the max no. of years, just to ramp up their overall interest income on the loan. Then, they send you on your way. There’s no help with the repairs and servicing of the car, and you now have a $500+ per week repayment that never gets smaller. If you miss one payment, BYE BYE car. Using a bank is a very inhuman approach to affording a car.
- RENT TO OWN
Here at Dry Hire Supply, our model is RENT TO OWN.
We know what it’s like to run a business and the pitfalls of the finance world. We understand that invoices can run over time and that some bills come in all at once. It’s hard to save money to invest back into your business BUT we know how much it means to meet a client and be proud of the vehicle you pull up in. The vehicle/s you and your staff drive will either add or detract to your overall business image…and you want this to be a good one.
RENT TO OWN is exactly that. We meet with you, help you choose the car/vehicle helping you get what you need to make your business more profitable. Avoid the overheads like Loan Administration charges and hidden fees with Rent to Own vehicle finance. The added cashflow + a great looking vehicle gives you the confidence to move forward in your business focusing on building successful customer relationships, creating a great business-image and not stressing about expensive lock-in bank loans.
Our team knows how to help you get the vehicle that suits your company so we would love to chat to you about you next commercial vehicle.