Understanding Business Car Loans
What is a business car loan?
A business car loan is specifically designed for companies and individuals who are looking for a way to finance their business vehicles such as employee cars, a company fleet, trucks and delivery vans. Whether you have a small or large company, are purchasing a new or second-hand business car or refinancing your existing one, our business car loans are the best option to fund your business car needs.
What are the features of a business car loan?
Our business car loans are fixed rate, meaning your loan repayment stays the same for the entire term of your loan. Your car loan term can be 3, 4, or 5 years. We provide loan amounts ranging from $5,000 up to $100,000.
You can choose your repayment terms including whether or not you want a "balloon" loan where you have lower monthly repayments during the term of your loan and then pay a larger residual value, commonly known as the “balloon payment”, at the end of the loan term.
Balloon loans have a lower monthly repayment because you agreed to pay your lender a lump sum amount at the end. For instance, you might borrow $35,000 for a car with a 5-year term. You agree to a 25% or $8,750 balloon payment. As a result your monthly repayment will be $540.35 instead of a $667.57 each month without the balloon payment. You will then need to pay $8,750 at the end of your car loan term.
Firstmac car loans also offer unlimited access to your online accounts anywhere, anytime, just as long as you have an internet connection on your phone. An online account will give you access to your car loan transactions and statements.
How to qualify for a business car loan?
You can ask your employer to provide you with the necessary documents as evidence that the vehicle is used for business or commercial purposes.
There are online calculators that provide an estimate of your loan repayment. You just need to input the amount of money your borrowed, interest rate, loan term, and repayment frequency. A car loan calculator is just a rough estimate of your repayments.