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Selecting the right Burlington car loan for your delivery business

Selecting the right Burlington car loan for your delivery business

If you are thinking about starting a delivery business or expanding the current one you are operating, these tips from our Burlington car loans team will help you make an informed buying decision.

Before we can shortlist vehicles, there is a checklist of questions we need to run through so you are in the best possible position for success.

Are you doing short or long-distance deliveries?

Many of our readers are doing quick deliveries in their community. Uber Eats, Door Dash, Skip the Dishes, and even some Amazon fulfilment are examples of short-distance deliveries.

If this sounds like your business model, then you want a vehicle that can handle a tremendous amount of stop-and-go driving without having any breakdowns, plus a vehicle that is fuel efficient.

Drivers who provide these short-distance deliveries generate their income in volume.

You cannot make enough money from a single delivery to offset the running costs of your vehicle.

But if you are able to do enough of them in a day, then you can earn a substantial amount of income.

If you are doing long-haul deliveries, chances are you are driving a large tractor trailer, and our suggestions would not be viable for you; you would need to wait for more energy-efficient vehicles to come online.

The ideal vehicle for entrepreneurs doing short-distance deliveries in Canada is an EV.

They are very energy efficient, and the low cost of fuel will give you a competitive advantage over drivers who are relying on gas-powered vehicles.

Vehicle financing concerns in Burlington

One of the biggest challenges you will face as an entrepreneur is being able to secure financing for your business.

When buying a new vehicle, whether it is an EV or gas-powered, prospective lenders are going to carefully assess your financial profile to determine whether you can service these loans.

These lenders want to issue the loan, this is how they make money, but they are extra cautious because most new businesses fail in the first five years and the lenders want to make sure you are a safe bet.

You will need to show the lenders your banking statements for the last 6-12 months and your income tax assessments.

This will show how much cash you are bringing in monthly, and the lenders can use those figures to average out your income.

The lenders are also going to look at your credit score to see if you meet their underwriting requirements. In 2022 the minimum credit score you need for a decent car loan is 620.

Ideally, you should aim for a credit score of 700 or higher. This will give you access to the best deals out there.

Where to get a great deal on your delivery vehicle

The best source is through your local car dealership; when you go through the local dealership, they will have access to lenders throughout Canada and pick the lender that will give you the best deal.

You should head over to your local dealership now and start the process before interest rates go up again.

If you need help or advice on anything to do with auto loans in Burlington, contact Car Nation Canada today, we can help!

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