Whether you’re an individual or a business, reading through all the information on the internet to decide on a car loan can be an unenviable task.
Something that can help with this chore is a bit of a point in the right direction from an expert.
At Rapid, we are car loan experts and are passionate about helping people find the right car loan for their circumstances. This is just as much about providing information as it is about the more hands-on stuff. Below, we will explain in simple terms what a Finance Lease is, and who it can benefit.
Hopefully, this makes your task less gruelling.
Finance Leases, Explained
Also known as a Car Lease, a Finance Lease is a type of car loan used by businesses to finance commercial vehicles. They are commonly used for businesses that are looking to finance luxury vehicles or new models, and wish to do so without spending large amounts of capital.
Under a Finance Lease, the customer is given use of their chosen vehicle along with the benefits of ownership from the beginning of the loan term. However, they do not actually legally own the vehicle until all repayments have been made to the lender. The lender retains ownership of the vehicle for the lease term, while the customer accepts the residual value risk.
Who is a Finance Lease Most Suitable For?
Finance Leases have many advantages for businesses that require the most current or luxury model vehicles without spending lots of capital.
They may also benefit employees who want to salary package a vehicle through a Novated Lease as part of their remuneration.
Since Finance Leases offer significantly less flexibility than other secured car loans, if you do not fall into either of the two categories noted above, chances are there are more suitable types of loans out there for you.
Read more about Finance Leases and see if they might be the right car loan for you.
If you need further guidance choosing the right car loan for you, contact Rapid’s expert team on 1300 467 274.