CAR LOANS

Leasing Finance

A lease facility enables a business to purchase an asset being a vehicle or equipment without utilising their capital. It is important to consider all your options with leasing finance, especially when it concerns costs, tax benefits and GST. We have compared each type of loan available however we would suggest contacting your accountant to discuss what is right for you

Hire Purchase

The asset is effectively purchased by making a series of payments over the term of the agreement. Ownership of the equipment automatically passes to the client on payment of the final instalment. Basically you hire and use the vehicle or equipment until you make your last payment - this is when you become the outright owner

Chattel Mortgage

A chattel mortgage is a Bill of Sale or Goods Mortgage. Lenders prefer to take the CM where they perceive the deal to be risky as the BOS provides a stronger security position. Basically your business owns the asset from the start of the agreement. The financier secures the loan by registering a charge over the asset.

Finance Lease

A finance lease is a finance agreement, and is accounted for as a liability on the client’s balance sheet. Basically you pay a monthly rental and have a number of options when the lease ends.

Fully Maintained Lease

The financier owns the asset. All maintenance for the vehicle is factored into the loan. A monthly rental fee is paid with the option to purchase the asset upon completion of loan.

Novated Lease

A three-way agreement between an employer, employee and finance company. This allows an employee to purchase the car of their choice from their pre-tax salary, via their employer.

 

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