Results 1 to 2 of 2

Thread: Financing a new vehicle.. help

  1. #1
    Silver Member
    Join Date
    Aug 2006
    Thanked 0 Times in 0 Posts

    Financing a new vehicle.. help

    Hi Everyone,

    I am in the process of getting a new vehicle for my company. Our current vehicles are old and dying. I would like to find out what is the best route and way to finance. I would like to get your experience down here so that others like me wont have to plod along unknowingly and fall into the same traps/mistakes that a newbie in purchasing would when it comes to vehicle.

    I am purchasing a 1 Ton 2 door Vehicle so i can claim the Vat through the business.

    Any advise on : deposits, residuals ,lending rates etc would be greatly appriciated.

    Thanks - Networking Forums SA partner site. Let's support each other for a better South Africa.

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Durban, South Africa
    Thanked 2,577 Times in 2,174 Posts
    Blog Entries
    I'd recommend staying clear of residuals. Other than that, people have their preferences for different reasons.

    There are three main options when it comes to financing:
    • Financial lease
    • Hire purchase
    • Rental

    Personally I prefer a financial lease. It does the best job of deferring tax payments, which is fine if you're not a public company or you're not planning to sell your business soon.

    I'm going to set out my understanding of the different effects in the wiki, and when it comes to a financial lease I'm pretty confident the advice is good. I stand under correction on the effects of HP deals, though. It's a long time since I financed anything that way and my understanding could quite possibly be out of date.

Similar Threads

  1. standard bank vehicle finance this time
    By murdock in forum General Business Forum
    Replies: 7
    Last Post: 05-Mar-11, 09:34 PM
  2. Driver demerit system
    By Dave A in forum General Business Forum
    Replies: 27
    Last Post: 01-Jul-10, 05:35 PM
  3. [Article] Media statement on reports on purchase of official vehicle for use by the deputy mini
    By BBBEE_CompSpec in forum South African Politics Forum
    Replies: 2
    Last Post: 14-Dec-09, 03:31 PM
  4. Managing your vehicle insurance costs
    By Dave A in forum General Business Forum
    Replies: 3
    Last Post: 10-Dec-08, 10:30 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts