Finance Lease

Receive 100% funding with tax deductible repayments

The Finance Lease is the most common form of vehicle funding for business in Australia. Unlike an Operating Lease it is on-balance sheet and this may impact some businesses.

How it works

A Finance Lease is a rental agreement, where the finance company purchases your vehicle and you rent it from them for an agreed monthly repayment. At the end of the term you make a final payment and the car is yours, or the finance company may elect to retain the vehicle. This however, is rare but should be considered when negotiating the residual. A Finance Lease allows businesses to take a residual position on the vehicle for the end of the term, providing it is within the Australian Taxation Office guidelines. This allows you to set repayments to cash flow requirements and potentially reap the benefit from the vehicle selling at a higher price than the residual.

Properly managed, a Finance Lease can provide business a lower cost option to Operating Lease. A Finance Lease does not require a deposit, and so gives you immediate use of the vehicle. Payments are fixed for the term of the lease, allowing fixed budgeting for your financial planning. For added flexibility you have the option to refinance the vehicle or make an offer to purchase the vehicle for the residual value at the end of the lease.

Benefits you'll enjoy...

• Finance leasing offers fixed rate financing; you pay at the same rate monthly.
• Leasing is inflation friendly, as the costs go up over five years, you still pay the same rate as when you began the lease, making your dollar stretch further, along with tailored repayments to suit cash flow.
• You can keep upgrading; as new equipment becomes available you can upgrade to the latest models each time your lease ends.
• It is easier to obtain than loans from commercial lenders.
• Typically the vehicle is yours to keep at the end of the term.
• Finance leasing also offers potential tax benefits depending on how the lease is structured.

A finance lease is a simple solution for your company’s vehicle needs.  To take advantage of our competitive fleet finance rates today, ring 1300 655 170 to speak to one of our Fleet Finance Consultants, download our Fleet Funding Options brochure or request more information.

Take advantage of our competitive fleet finance rates today, ring 1300 655 170 to speak to one of our Fleet Finance Consultants, download our Fleet Funding Options brochure.

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