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Car lease & asset finance
A car lease or asset finance is a facility that enables individuals or businesses to purchase vehicles or other assets and equipments.
Buying a car or equipment can be a fairly regular expense, compared to purchasing a home. Securing a loan to help pay for the vehicle can enable you to buy your ideal car sooner or update your company's ageing fleet or equipment.
For businesses, buying cars, trucks, equipment or other business assets is a crucial part of business operations and can help support business growth.
How do car & asset loans work?
Car loans and car leases will vary depending on who is taking out the loan and if the loan is to be fully repaid or have a residual amount owing at the end of the term - commonly called a balloon payment. A loan that is to be fully repaid is typically a personal loan secured on the asset, whereas a lease is over a set term in which the borrower will either hand back the asset at the end of the term or payout the remaining balloon figure that is owing. Both will tend to have a higher interest rate and shorter loan term than a home loan.
For a business, the process is a little different. A commercial or business loan will also tend to have a higher interest rate and shorter loan term than a home loan, but will be structured differently than a personal loan. The loan is taken out by the business, not an individual.
What should you consider when taking out a car or asset loan?
The costs of a personal loan, lease or a business loan will tend to be higher, so it’s important to consider your ability to repay the loan - either as an individual or a business. For businesses and individuals, there are other considerations to keep in mind such as tax, Fringe Benefits Tax (FBT) or cash flow impacts, so it’s important to speak with your accountant before taking this step.
Why work with FABE Financial to secure your car or asset loan?
At FABE Financial, we are experienced in securing car and asset finance for individuals or businesses. We understand how to secure the best outcome for you, while minimising your costs over time.
Car lease & asset finance
A car lease or asset finance is a facility that enables individuals or businesses to purchase vehicles or other assets and equipments.
Buying a car or equipment can be a fairly regular expense, compared to purchasing a home. Securing a loan to help pay for the vehicle can enable you to buy your ideal car sooner or update your company's ageing fleet or equipment.
For businesses, buying cars, trucks, equipment or other business assets is a crucial part of business operations and can help support business growth.
How do car & asset loans work?
Car loans and car leases will vary depending on who is taking out the loan and if the loan is to be fully repaid or have a residual amount owing at the end of the term - commonly called a balloon payment. A loan that is to be fully repaid is typically a personal loan secured on the asset, whereas a lease is over a set term in which the borrower will either hand back the asset at the end of the term or payout the remaining balloon figure that is owing. Both will tend to have a higher interest rate and shorter loan term than a home loan.
For a business, the process is a little different. A commercial or business loan will also tend to have a higher interest rate and shorter loan term than a home loan, but will be structured differently than a personal loan. The loan is taken out by the business, not an individual.
What should you consider when taking out a car or asset loan?
The costs of a personal loan, lease or a business loan will tend to be higher, so it’s important to consider your ability to repay the loan - either as an individual or a business. For businesses and individuals, there are other considerations to keep in mind such as tax, Fringe Benefits Tax (FBT) or cash flow impacts, so it’s important to speak with your accountant before taking this step.
Why work with FABE Financial to secure your car or asset loan?
At FABE Financial, we are experienced in securing car and asset finance for individuals or businesses. We understand how to secure the best outcome for you, while minimising your costs over time.