There are many dealers that offer business car finance programs to corporations and other businesses. These are typically businesses engaged in a variety of services such as catering, delivery, ground transportation, etc. Some companies use leased vehicles as an employee benefit, particularly for employees who travel often as a condition of their employment. Having access to a company lease program is a way to gain access to a car.
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Company lease programs are structured to give employees access to vehicles so that they can save on the expense of using their personal cars for business. The company receives valuable tax benefits as well as depreciation write-offs on the vehicles as company-owned equipment. Aside from increases in liability expense for the company, the use of a company-owned vehicle is a valuable employee benefit.
It is worth asking your employer if they have a company car program and what the participation requirements are for the program. If the company does not have such a program, it may provide a way to suggest or create such a program for your company. You will need to highlight the benefits that the company derives from instituting such a program and how those benefits far out weigh the short-term start-up costs necessary to start the program.
If you are in the market for a used vehicle and your company has a car program, you may be able to find a bargain purchasing your car directly from the company instead of through a dealer. The company in many cases maintains the vehicles in good working condition and may be able to provide you with reasonable financing terms. These terms could include a small deduction from your regular paycheck at an interest rate far below the prevailing market rate for automobile loans.
Rental agencies such as Avis, Hertz, National, Alamo, Budget and others sell their vehicles from time to time when they need to replace a portion of their fleet or retire certain older models. These cars are typically priced below their Kelley Blue Book value because they tend to have more mileage and wear-and-tear than similar used cars. Be sure to request a vehicle history report to make sure that the vehicle you are looking to purchase was not involved in an accident.
You can search the websites of companies in your area that offer company car programs to see if they have any vehicles for sale. There may also be listings available through craigslist.com and other similar sites. If you do the homework and research, you may find a bargain.
Know the price of the vehicle you are looking to buy and the price you are willing to pay. It is important to negotiate the purchase price when engaging in your discussions with the company. You will find in many instances that the price is going to be fairly low and reasonable, but you want to be sure that you are getting a good value for the money.
