So you’ve bought the vehicle of your dreams. We’re not sure why you need a Ferrari to deliver pizzas for your business, but hey. Like Tony Danza, you’re the boss.
Now that you’ve got the car, you need to start navigating the title process. If it’s something you haven’t done before, never fear, your financing company (say Direct Capital?) can take care of the bulk of it for you. You do have a financing partner, right?
That said, there’s still a few things you need to know about the title process so there are no surprises. That includes the advantages of using what we in the finance business like to call an Equipment Finance Agreement.
The Equipment Finance Agreement
So what is an Equipment Finance Agreement? I’ll let Matt Sullivan of Direct Capital take this one:
An EFA is very similar to a traditional leasing agreement, but the financing company only files a UCC lien on the equipment, instead of retaining ownership. This change in ownership can save you money through certain tax benefits and reduced service fees.
The advantage of this is that you should be able to finance your new vehicle at a quality rate, and there’s absolutely no question about ownership at the end of the agreement. It also keeps those nasty end-of-lease problems and payments from rearing their ugly heads and catching you in a time where you really can’t afford to be making extra payments. It’s a smart thing to do. Also, did we mention it doesn’t have an effect on your personal credit history?
With this in place and a trusted financing partner, you won’t have to worry about a thing. Within 14 days of the lien being lifted from the vehicle, you should have your title in hand, a clear and coherent schedule of payments to make and that Ferrari. Just don’t spill any pizza on it.
If you want a lot more great advice, be sure to check back in with us for a new eBook on the vehicle title process. You’ll be glad you did.
How many times have you used financing through the vehicle leasing process?