My Company Is Only 6 Mths Old and The Company Is Looking to Buy a Car for Business Purposes - Is It Too Soon to Apply for Loan?

LJulian King on 19/09/2018 - 16:40

Hi,

I have a new consultancy firm and I have 100% ownership/shareholding of this company.

Due to frequent client meetings outside my office area, I UBER 2-3 times a day, sometimes even 5.

This adds up to be around 250 - 400 bucks a week, just in travelling to client meetings.

Some more info about the company:

  1. No employees
  2. I don't draw too much director loan from the company.
  3. The company earns around 10k a month (so around 2.5k a week).
  4. It only started trading on April.
  5. Earnings are expected to rise gradually (as it is doing so already).

Is it too soon to apply for a car loan?

I'm looking to buy one around 50-70k mark…

If there is a car loan broker or a financier, would you be able to introduce them to me?

THKS so much team!!!

Automotive Car

Comments

  • whooah1979 on 19/09/2018 - 16:44
    +4

    I'm looking to buy one around 50-70k mark

    What's wrong with a Camry?

    • HighAndDry on 19/09/2018 - 16:51
      +2

      Honestly if he's in consulting and he's driving to clients - that's probably one of the only ways in which an expensive European marque could actually deliver tangible returns. Think of it as basically marketing on wheels. (Same concept as real estate agents spruiking multi-million properties driving around in expensive leased cars).

      • whooah1979 on 19/09/2018 - 18:24
        +8

        Think of it as basically marketing on wheels. (Same concept as real estate agents spruiking multi-million properties driving around in expensive leased cars).

        This is why we always choose agents, tradies and professionals that drive working class vehicles. An expensive leased vehicle is an indication that they're ripping off their clients/customers.

      • Ocker on 19/09/2018 - 18:42
        +5

        If I see a broker, or consultant rock up in a high end prestige car the only thing that worries me is the fact his clients are paying inflated fees to cover the cost of the car

        • HighAndDry on 19/09/2018 - 18:47
          -2

          You might. Most clients don't and won't.

        • Ocker on 19/09/2018 - 18:48
          -2

          So you can authoritatively speak on behalf of "most clients"?

        • blitz on 19/09/2018 - 22:12
          +2

          @Ocker:

          But you just spoke on behalf of all his clients…

          his clients are paying inflated fees

    • dcep on 19/09/2018 - 16:52
      +5

      low yield investment

      • Kangal on 19/09/2018 - 19:13

        medium yield liability?

  • dasher86 on 19/09/2018 - 16:45
    +7

    $10k more and we can introduce you to a Westpac banker.

    • Kangal on 19/09/2018 - 19:14
      +4

      W estpackb anker

  • [Deactivated] on 19/09/2018 - 16:49
    +9

    When you own a company with no other employees and you're the sole contributor/asset, you're essentially self employed.

    Taking a "company car loan" is hardly different to taking a "car loan" like anyone else. The bank will certainly see no difference.

  • salmon123 on 19/09/2018 - 16:51

    Is it too soon to apply for a car loan?

    It should be easy enough to get a car loan - it's secured against the car after all and they typically structure the payment, so you quickly pay down to a balance that lower than the market value. There will probably be something about personal liability for the loan, in case your company goes bust.

    If there is a car loan broker or a financier, would you be able to introduce them to me?

    Just talk to the one at the dealership. They'll happily beat whatever offer you present them.

  • hawkeye on 19/09/2018 - 17:03

    Low doc loan show last BAS pay higher interest. That's what you need to ask for anyway.

  • GangGang on 19/09/2018 - 17:38
    +1

    Weigh out what works better for you.

    Rego, insurance, petrol, price of car, etc Versus $250 - 400 a week.

    You are in the car a lot everyday. Would you driving also impact your time by you not being on the laptop/phone while in the back of a uber car?

  • sweefu on 19/09/2018 - 18:23

    Broker here - definitely possible.

    You will end up with a higher interest rate, but there's several lenders that will assist a new business.

  • Euphemistic on 19/09/2018 - 21:54

    If you are just starting out and worried about getting a loan, don’t aim so nhigh with your vehicle. Try something closer to $30k. You’ll still get a decent, modern car but less drama getting the loan (smaller amount) and less drama if the business drops off a bit.

    • Lexan on 20/09/2018 - 11:43

      You can get a Lexus under 30k. Luxury looking and reliable car. Get BMW you will need to spend more time at repair centre, these cars have too much faults.

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