It happens again and again that freelancers, self-employed or small businesses need a car loan commercially. However, applying for such a loan is often far more difficult than a personal installment loan, as many financial institutions do not offer a car loan commercially at all because they consider the risk of a loan default to be too great. Especially young companies or traders with fluctuating incomes often have great problems getting such a loan.
Where can you get a commercial car loan?
First of all, you should contact your house bank. after all, they know you and your financial situation best. If you are not over-indebted and have so far fully met your financial obligations, chances are good that your loan application will be approved. Nevertheless, you should definitely use the Internet to compare different providers.
Especially when it comes to a larger loan amount commercially with the car loan, you can save considerable sums under more favorable conditions. For example, you can get car loans from the banks of the major car manufacturers at particularly favorable terms. This is because the car companies are naturally interested in selling as many of their vehicles as possible. But there are also other financial institutions that give car loans to traders.
What should you pay attention to?
So that your loan application has the greatest possible chance of success, you should carefully prepare for it. For example, it is advisable to obtain information from the Credit Bureau beforehand. This means you kill 2 birds with one stone. On the one hand, you can see your creditworthiness assessment with your own eyes. Second, you can check the entries of the Credit Bureau. These are often incorrect. For example, the current address is often not included or liabilities are listed that have long been settled but have not yet been deleted for some reason.
If you apply for a car loan commercially, you must bring your income tax return from the past two years as proof of income. The loan is easier if you can provide collateral. With a commercial car loan, the vehicle to be financed is an option. In practice, this means that the vehicle letter will be deposited with the bank and will only be handed over to you when the loan has been repaid.
What is better, financing or leasing?
It all depends on the circumstances. For many freelancers or the self-employed, a commercial car loan is the better solution, since the borrower has free disposal of the financed vehicle. It can be used for both commercial and private purposes without limiting the mileage and becomes commercial property after the car loan has been repaid. In contrast, when leasing, the vehicle remains in the possession of the lessor. The installments can be deducted from the operating costs for tax purposes. However, there is a strict limitation on annual mileage, which is expensive to exceed.