Purchase Amounts: $30,000+
Terms: 60 to 75 months
Down Payment: May be required, good to have about $3000 to $5000 available.
Interest Rates: Starts at estimated 4% with great business credit, others 8%+.
Commercial Insurance or Private Insurance: Depends, most times commercial insurance is required, but as owner of a business somtimes personal car insurance is accepted.
The 20 Points Compliance: A total MUST!
Business Credit: Yes, 80 Paydex, Experian Score and Equifax Score
History on Business Credit: at least 3 Payments
Number of Vendors Needed on your Business Credit: 15 with at least 3 months of payments. Its good to have a $10,000 net 30 account on your business credit report.
Business Credit Bureau being pulled: Experian ( Good to have 7 to 15 lines reporting.) and DnB.
Reports to: Experian Business
Personal Guarantee or NO Personal Guarantee: NO Personal Guarantee
Personal FICO Score: 680+ ( Not Needed )
Time in Business: Six Months in Business is the minimum, we suggest 12Months+.
Yearly Estimated Revenues: $450,000+
Personal Estimated Income: $12,000+
How to Apply: On loacation where Ally Financing is available.
What you will need to Apply: Your drivers license, your SS4 form and your business Secretary of State Incorporation Documents.
May be needed: Last THREE Months Business Bank Statements.
Special Instructions: You will need to have 15 Vendors reporting to your business credit profile before aply for an auto loan with Ally.
Shared Experiences: We have seen some clients get approved for $50,000 auto loan with Ally that only have THREE simple vendor accounts reporting to their business credit and maybe only one vendor reported twice. What this says, you will have to simply sometimes go into a dealership and try your luck. NOW, remember, the stronger your business credit, the lower the rates are going to be and the amount you can get approved for. That decision is up to you. We have also seen clients get approved without a down payment.
Special Instructions: You must go into a dealership and request that you be financed using your business credit. If that sales person is not knowledgable about business credit, request to see the manager. Then inform the manager that you would like to purchase a vehicle using your business credit, hence your EIN number. You MUST refuse to personal guarantee the auto loan. Talk only to the Car Dealers Finance Manager. Ask to speak with the Finance Manager and let hom or her know that you want Business Name Only!.
How to find a dealer that accepts Ally Financing:
Go to Ally Website, then go to business vehicle financing and at the bottom of the website you will find a dealer search where you can enter your zip code and make of vehicle and they will show you which dealers they work with.
EXTRACT FROM ALLY WEBSITE:
Financing in the Business Name
If you’re looking to finance commercial vehicles in the name of your business without affecting your personal credit, Ally features two solutions.
When you want to buy or lease vehicles in the name of your business but need to secure additional financing, you may act as a third-party guarantor. This allows you to keep your name off the title and may keep the debt off your personal credit record. Keep in mind, if your business defaults, you may become liable and the debt may be reported on your personal credit record.
This means if you do not have enough business credit, you can guarantee the auto loan but it will nOT show on your personal credit.
Business name only
If your business qualifies for financing without the owner’s guaranty, you can obtain financing in the business name only. This gives you the ability to save your personal credit for other use as well as:
Build credit in your business name
Protect yourself from liability related to the operation of the vehicle
REMEMBER: If you default, this will show on your personal credit.
This is a great way to get a vehicle with NO Personal Guarantee. Also a great way to get MULTIPLE cars with NO Personal Guarantee.
Want to enter the car rental business with TURO?. This is a great tool to get the cars.
HOWEVER: If you are looking to get the lowest interest rates which will make sense if you are going to start your TURO business, then we suggest that your business credit should be built out to the strongest file. If you are just trying to get a car for yourself and the monthly payments or interest rates does not really matter ( 8%+) then just having a couple of vendors reporting to your business credit is enough. We have experienced that some clients get cars with a thin business credit file but they do pay 8%+ in interest.
In the end, a stronger business credit file gets you the best terms and interest.