Finance Options

Novated (salary packaged) lease.

An agreement between an employer, employee and financier in which the employee may include the purchase and operating costs associated with running a vehicle into their salary package. The purchase and registered ownership is in the name of the employee.

Finance lease.

A regular form of business finance that helps reduce capital expenditure. Although the registered ownership is in the name of the borrower, title remains with the financier until the discharge of the residual value at the end of the contract, or a negotiated early payout is made. Payments are considered to be ?rentals? to the financier. Therefore, with appropriate business use, these rentals are fully tax deducible.

Commercial Hire Purchase.

Another regular form of business finance with similar benefits to those of a lease. Differences are that the ownership is deemed to be with the purchaser. This means that with appropriate business use, the interest payments are tax deductible and the vehicle can be depreciated as a tax deduction also.

Chattel Mortgage.

Used for the same benefits as a lease or commercial hire purchase. Ownership is deemed to be with the purchaser. With appropriate business use the interest is tax deductible as well as depreciation as with a commercial hire purchase., When the owner is registered for GST on a cash basis, the GST on the vehicle can be claimed back in a more cash flow positive manner.