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Operating Lease

Reduce risk. Smooth costs. Improve fleet efficiency.
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An operating lease is an easy and cost effective way of financing your company’s vehicles. It’s a fully integrated, tax deductible leasing option that’s like a long-term vehicle rental. The two key benefits of an operating lease are that you carry no residual value risk and can combine most of your vehicle running costs into one smooth, monthly payment.
Fleetcare owns the vehicle and provides you with exclusive use for one to five years in return for lease rental payments. There is no initial deposit or outlay for your business. At the end of the operating lease, you simply return the vehicle back to Fleetcare, allowing you to have the most current models, increasing your competitive advantage.

Why choose an Operating Lease?

Access working capital
Monthly repayments are spread over time so that you can keep your cash reserves for more effective use and maximise your key business performance indicators. You can also free up your company’s capital and internal resources to invest in your business, while Fleetcare takes care of your vehicles.
It's tax deductible
Leasing payments excluding the GST portion are usually tax deductible when the vehicle is used for business purposes, helping your bottom line. GST on monthly payments is claimed through your business activity statement (BAS) submission.
It eliminates residual and asset risk
With an operating lease, Fleetcare carries the risk of the residual value and vehicle disposal. At the end of the lease, you simply return the vehicle with no further obligations and upgrade to the latest model. There’s no outflow of cash reserves to buy assets, which will only depreciate, and the vehicles can be used for short or long periods of time, with no residual risk at any stage.
One fixed monthly payment
One fixed monthly maintenance and lease payment benefits your cash flow and makes budget forecasting more accurate, as well as protecting you against interest rate fluctuations. You’ll be able to accurately budget for the total costs associated with running your fleet. The monthly payment is delivered in a single invoice, making payment easy to manage.
Reduced administration

An operating lease includes most vehicle running and maintenance costs, including servicing, registration/third party insurance, replacement tyres, roadside assistance, lease reporting and fines management, within a set monthly repayment. This can assist in your business cash flow, as you have flattened vehicle running costs that are known in advance.

Fleetcare can also supply and manage your fuel cards, e-tags and insurance, which are invoiced on a monthly basis as used.

Operating Lease compared to traditional finance methods

Op Lease vs Finance Method Infographic

Think an Operating Lease is right for you?

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