What types of finance leases are there?
How do I know which type of lease or financing option is right for me?
- Fleetcare Operating Lease – Perfect if your business wants current vehicle models and will be continually upgrading, or if you don’t want to take on residual value risk.
- Fleetcare Finance Lease – Great if you want leasing flexibility and the option to acquire the vehicle at the end of the lease.
- Fleetcare Hire Purchase – Ideal if you want to own the vehicle at the end of the term, or if you’re unsure when the vehicle will be replaced.
- Fleetcare Secured Loan – Suited to businesses that account on a cash basis (turnover less than $1m). It allows GST funding upfront and permits a full GST claim in the first BAS cycle.
Still not sure which option suits your business? Our finance experts are here to help. Simply complete a form on the Fleetcare website, call 134 333 or email info@fleetcare.com.au.
Can Fleetcare source the vehicle?
Yes – Fleetcare buys vehicles in bulk through its dealer network, passing on negotiated discounts to you.
Can I customise my vehicle with accessories or add-ons?
Yes – as long as you let Fleetcare know at the quote stage. That way we can secure the best price, including any extras.
If you’d like extra protection, we also offer a range of vehicle protection options designed to keep your car safe and enjoyable to drive.
Am I able to purchase the vehicle at the end of the lease term?
End-of-lease options can be discussed with Fleetcare. If you’re interested in purchasing the financed vehicle, let us know before the lease ends.
What is an operating lease?
A Fleetcare Operating Lease is a fully integrated, tax-deductible leasing option. It works like a long-term rental where you carry no residual risk, and most vehicle running costs can be bundled with the lease into one monthly payment.
A Fleetcare Finance Lease is a non-maintained option where the financier legally owns the vehicle, and you lease it for an agreed term. At the end, you may have the option to purchase the vehicle.
A Fleetcare Hire Purchase requires an initial deposit, followed by monthly instalments. Once the final payment is made, you own the vehicle outright.
With a Fleetcare Secured Loan (Chattel Mortgage), you take immediate ownership of the vehicle. It’s treated as a cash sale, giving you ownership from day one.
What is a sale & leaseback arrangement?
A sale & leaseback allows you to sell your current fleet to Fleetcare and lease it back through an operating or finance lease. It’s a smart way to free up capital while improving cashflow with one simple monthly payment that covers all vehicle expenses.
Will an operating lease create more paperwork for me?
No – in fact, an operating lease does the opposite. Because it includes most vehicle running and maintenance costs in a single monthly repayment, Fleetcare manages all the paperwork on your behalf. That frees up your time to focus on running your business.
What's the difference between an operating lease and a finance lease?
The main difference between these finance types comes down to risk. Under an operating lease, Fleetcare determines a future value based on the lease term and kilometres travelled. At the end of the lease, Fleetcare retains ownership and carries the risk on the vehicle’s value.
With a finance lease, the ATO sets guidelines to determine the residual value, which becomes the amount payable at lease end. This means the business carries the risk.
Running costs are another factor: an operating lease can bundle servicing, registration, and tyres into the rental, while a finance lease does not.
Is there a minimum number of vehicles for an operating lease?
There’s generally no minimum or maximum – it depends on your company’s financial position.
What's the difference between a fully maintained and a non-maintained operating lease?
A fully maintained operating lease includes servicing, registration, tyres, roadside assistance, e-Tag management, accident management, and fuel card management. A non-maintained lease only covers the vehicle finance, with running costs charged separately.
What vehicles can I lease on an operating lease?
Any new car offered by a manufacturer-approved dealer can be financed under an operating lease.
Can I take out an operating lease on vehicles I already own?
Yes – through a Sale & Leaseback agreement. Fleetcare buys your vehicles and leases them back, freeing up capital and streamlining costs into one monthly payment.
What is the standard term for an operating lease?
Lease terms typically range from 12 to 60 months. A 3-year term is often recommended to maximise warranty coverage and value.
Who will own the vehicle at the end of an operating lease?
Fleetcare retains ownership of the vehicle at the end of the operating lease term.
Is a finance lease right for me?
A finance lease is a great option for businesses that want flexibility at the end of the lease term. You may be able to upgrade to a later model, extend the lease period, or make an offer to purchase the vehicle at the agreed residual value.
While Fleetcare legally owns the asset at lease end, we will consider your options — including transferring ownership if the residual is paid out.
Is there a minimum number of vehicles for a finance lease?
There’s no strict minimum or maximum number of vehicles required for a finance lease. Eligibility will depend on your business’s financial position.
What type of vehicle can I take out under a finance lease agreement?
You can choose a new or used car, provided it’s less than eight years old at the end of the lease term.
What is the standard term for a finance lease agreement?
A finance lease typically runs between 1 to 5 years. Fleetcare will help determine the most suitable term to maximise warranty cover and end-of-term value.
Who will own the vehicle at the end of the finance lease period?
At the end of the lease, Fleetcare — as the legal owner — may consider your options. You can usually:
- Make an offer to purchase the vehicle at the agreed residual value.
- Hand it back to Fleetcare and upgrade to a later model.
- Refinance the residual amount and extend the lease term.
Note: Any surplus or shortfall in the vehicle’s value at lease end is retained or charged to the customer.
Is a hire purchase agreement right for me?
A hire purchase agreement is suitable for businesses, partnerships, and sole traders who are registered for GST on an accruals basis. You can claim the GST on the vehicle’s purchase price as a lump sum on your next Business Activity Statement (BAS) cycle.
Is there a minimum number of vehicles for a hire purchase agreement?
There’s no minimum or maximum number of vehicles required. Eligibility will depend on your business’s financial position.
What type of vehicle can I take out under a hire purchase agreement?
You can choose a new or used car, provided it will be less than eight years old at the end of the agreement.
Can I use my current car as a trade-in for a hire purchase agreement?
Yes. You can trade in your existing vehicle to build equity toward the car you wish to hire from Fleetcare.
What is the standard term for a hire purchase agreement?
A hire purchase term can range from 1 to 5 years. We generally recommend a minimum three-year term to maximise warranty cover and end-of-term value.
Who will own the vehicle at the end of the hire purchase arrangement?
Once you’ve made the final payment under the hire purchase arrangement, you’ll gain full ownership of the vehicle.
Is a secured loan term right for me?
A secured loan, also known as a chattel mortgage, is ideal if you want to own the vehicle now and pay it off over time. If your business accounts on a cash basis with turnover under $1m, you’re entitled to claim the full GST on the purchase price in your first Business Activity Statement (BAS) cycle.
What’s the difference between a secured loan term and an unsecured loan?
With a secured loan, the car you purchase is used as security until the loan is repaid in full. With an unsecured loan, the vehicle isn’t tied to the loan as security, even though the funds are still used to buy the car.
Is there a minimum number of vehicles for a secured loan term?
There’s no minimum or maximum number of vehicles required. Eligibility will depend on your business’s financial position.
What vehicles can I purchase on a secured loan term?
You can purchase a new or used vehicle, provided it’s less than eight years old at the end of the loan term.
What is the standard term for a secured loan arrangement?
A secured loan term can range between 1 and 5 years. Fleetcare generally recommends a minimum three-year term to maximise warranty cover and end-of-term value.
Who will own the vehicle at the end of the secured loan term?
You take immediate ownership of the vehicle when you enter a secured loan arrangement. Fleetcare registers a mortgage over the vehicle as loan security. Once the loan is repaid, the mortgage is removed and you retain full ownership.
Which finance options suit a sale & leaseback agreement?
Will the sale & leaseback vehicle be fully maintained?
Sale & Leaseback agreements — whether Operating Lease, Finance Lease, Hire Purchase, or Secured Loan — are generally non-maintained. However, we can supplement these with our Fleet Management service to ensure all vehicles are fully managed.
Are there any restrictions in the type or age of vehicles that can be used in a sales & leaseback?
Fleetcare will assess your fleet and work with you to determine vehicle suitability for a Sale & Leaseback agreement, making sure your operational requirements are met.
Can I do a Sale & Leaseback on a personal vehicle?
Yes, if you meet the eligibility criteria for a novated lease. A Fleetcare Novated Lease lets you bundle your car and running costs into one payment from your before-tax salary. Call our team on 134 333 to learn more.