Leasing Options
When looking at vehicle and equipment finance, you need to
consider:
Which product is right for me?
How should I structure the loan for my situation?
Where can I find a quick and easy approval?
We know you are busy and we can help. Our knowledge and
experience means we can find you the most appropriate option
to meet your needs.
We can handle the transaction all the way from quoting through
to documentation and settlement.
We offer flexible and efficient leasing operations through these products and/or facilities:
- Motor cars
- Commercial vehicles
- Engineering equipment
- Materials handling equipment
- Medical and dental equipment
- Office equipment and computers
- General business equipment.
A Finance Lease requires the lessee to finance 100% of the asset cost, i.e. a deposit can not be utilised to reduce the amount financed. A residual value, which is payable at the end of the term, must be established. Residual values are determined by the Australian Tax Office and are based on the depreciation value of the asset.
The advantages of a Finance Lease are:
No initial cash out lay as 100% of the purchase price is financed
Rental payments are fully tax deductible*
Novated Lease Agreements
Novated leases combine the features of more traditional forms of vehicle finance to provide options and benefits for both employers and employees.
A novated lease is an agreement between an employer, an employee and the financier, where the obligation to meet the repayments under the finance lease is with the employer. The employee owns the vehicle and retains possession if they change jobs. Additionally, when structured correctly, there may be tax advantages.
Like other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.
Benefits of a novated lease for the employee include:
Greater flexibility with the choice of a vehicle.
Financing of the vehicle may be paid with pre-tax dollars.
Option to own the vehicle at the end of the novated lease term.
The vehicle may be leased for 100% private use.
More than one vehicle may be leased with employer consent.
Benefits of a novated lease for the employer include:
An easy and cost-effective way to add value to an employees remuneration package.
Time and costs associated with management and disposal of the vehicle are not the employer's responsibility.
The vehible is the responsibility of the employee should they change employment or when the novated lease ends.
Commercial Hire Purchase
A Commercial Hire Purchase (CHP) agreement is a contract to purchase equipment on a set term with a fixed rate. Ownership of the equipment is transferred once the final payment has been made. Security is taken over the equipment financed leaving other assets free for other lending. Each repayment increases the equity in the equipment. Commercial Hire Purchase work best where the business wants full ownership at the end of the finance term.
Advantages of a CHP are:
Freedom to reduce the amount financed using a deposit, or you can finance 100% of the asset cost.
Option to structure the transaction with a balloon or fully amortise the finance.
Tax benefit through interest paid and depreciation on the equipment.*
If you would like us to help you with a competitive and hassle-free lease, then please click here to arrange an Appointment.
* Please consult your accountant or tax agent to ensure you understand how the taxation benefits may apply according to your personal circumstances.