Car Finance

When considering finance for your vehicle the following options are available. We do recommend that you consult your accountant about which option suits your business/personal interests the best.

• HIRE PURCHASE
• CHATTEL MORTGAGE
• LEASE
• NOVATED LEASE

HIRE PURCHASE

Available for companies and business professionals to buy business goods such as motor vehicles, motorbikes and boats. A hire purchase arrangement is an agreement to purchase vehicles subject to payment terms. During the term of the agreement, the financier owns the vehicle. Ownership is automatically transferred to you when you make the final payment.

Business Benefits:

• You own the vehicle when the final repayment is made
• You can purchase the vehicle at any time during the terms of the agreement
• There is no need for a deposit
• Flexible repayment arrangements maximise cash flow
• The interest component of the repayments and the depreciation on the vehicle may be claimed as tax deductions, provided the vehicle is used to generate assessable income
• You can also arrange to make a balloon payment at the end of the facility to reduce repayments throughout the term
• The repayments are fixed throughout the term of the facility

Download application for hire purchase here, or phone us today on (02) 4365 5899.

CHATTEL MORTGAGE (or Bill of Sale)

Available for companies and business professionals to buy business goods such as motor vehicles, motorbikes and boats which are for business use more than 50% of the time. It is a loan agreement where you borrow funds to acquire an asset. You provide security for the loan by way of a mortgage to the Bank over the asset financed.

Business Benefits:

• You are generally not required to provide a deposit
• Repayments may be tailored to suit your cashflow
• You don't pay GST on the loan or the repayments
• You retain ownership of the asset throughout the term of the loan
• The interest component of the payments and the deprectiation on the asset may be tax deductible, provided you use the vehicle to generate assessable income.
• If you are registered for GST, you can claim the GST portion of the vehicle price on your next BAS
• You can arrange to make a balloon payment at the end of the loan to reduce payments throughout the term

Download application for chattel mortgage here, or phone us today on (02) 4365 5899.

LEASE

Financier purchases the vehicle you require and then leases the goods to you. You then enjoy the use of the vehicle for an agreed time in return for rental payments.

Business Benefits:

• Preserve your working capital with 100% financing
• If you use the asset to generate income, rental payments may be tax deductible
• You may be entitled to claim an input tax credit for rental and other charges that are subject to GST
• The rentals are fixed throughout the term of the lease

Download application for lease here, or phone us today on (02) 4365 5899.

NOVATED LEASE

For employees who have the option of receiving a car as part of their salary package. The employer pays all rental payments to the financier and the employee enjoys full use of the motor vehicle. The employee chooses a car and leases it from the financier. The employee then novates the lease to their employer, who assumes some of the employee's rights and obligations under the lease, including responsibility of meeting the lease rentals. The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times. If the employee leaves the compnay,the vehicle remains with the employee. In this situation generally the employee takes over the payments or gets another employer to make the payments. This means the original employer is not left with and unwanted car and the employee keeps the vehicle.

Employee Benefits:

• Use of the vehicle without having to budget for the repayments
• Complete choice about what car you buy and where you buy it from
• Retain the car even if changing employment

Employer Benefits:

• If the employee leaves, the company is not left with an unwanted car
• The emplyer can provide the employee with a car without having to reflect it on its balance sheet.

Download application for novated lease here, or phone us today on (02) 4365 5899.