When it comes to getting from Point A to Point B, there are a few different options for business owners. One option is to rent a vehicle, and the other is to finance a vehicle. Both have their own benefits, but when it comes down to it, financing is the better option for most businesses. In this blog post, we will discuss some of the key benefits of financing vs. renting a vehicle for your business.
You Can Build Your Business Credit History by Financing a Vehicle
One of the benefits of financing a vehicle for your business is that it can help you build your business credit history. This is important because having a good business credit score can help you qualify for loans and lines of credit in the future. When you finance a vehicle, the lender reports your payments to the major business credit reporting agencies. As long as you make your payments on time, this will help improve your score.
Renting a vehicle, on the other hand, will not help you build your business credit history because the rental company is not required to report your payments to the credit reporting agencies.
You Can Easily Upgrade Your Vehicle Whenever the Time Comes
Another benefit of financing a vehicle is that it gives you the flexibility to upgrade your vehicle whenever you need to. Maybe your business has grown and you need a bigger vehicle to accommodate more inventory. Or maybe you’re looking to trade in your current vehicle for a newer model.
Whatever the case may be, when you finance a vehicle, upgrading is easy. For example, if your business uses a Transporter van for moving products between locations and you are in need of a newer model, you can simply trade in your old vehicle for a new one and start making payments on the new loan, and are able to take advantage of having multiple VW Transporter finance options.
Renting a vehicle, on the other hand, does not give you this flexibility. Once your contract is up, you will need to return the vehicle to the rental company. If you want to upgrade, you will need to start the renting process all over again.
Financing a vehicle is a better option for business owners who want the flexibility to upgrade their vehicles whenever they need to.
These are just a few of the key benefits of financing vs. renting a vehicle for your business. When it comes down to it, financing is the better option for most businesses. If you’re looking to build your business credit history or want the flexibility to upgrade your vehicle whenever you need to, financing is the way to go.