We have a range of financing solutions for motor vehicles for your business – ABN holders only. Be it a single vehicle or a fleet we have a competitive solution for your business.
Financials not up to date? No problem – we can help and in most instances you won’t pay more, in fact, sometimes less!
Our Business car loan products include:
Chattel Mortgage:
Chattel Mortgage is basically a charge over goods to be financed. A Chattel Mortgage allows businesses who operate under a ‘cash accounting’ basis to claim the full input tax credit from GST incurred expenses immediately. Please check this aspect with your accountant.
This business car loan structure can be tailor made on a similar basis to a Finance Lease & Asset Purchase facility.
Car Finance Lease:
A Car Lease is a form of rental agreement under which you lease your vehicle for an agreed term and rental amount. A residual value is set to reflect the vehicle’s value at the end of the term.
The car is owned by the finance company, but the lease rentals are tax deductible to you, as long as the goods are used in connection with producing tax assessable income.
At the end of the Lease you can make an offer to purchase the car from the finance company, trade it in on a replacement, return it, or extend the lease for a further term.
Hire Purchase:
Hire Purchase is a rental agreement, but unlike a finance lease the goods motor vehicle automatically becomes yours once all terms of the agreement have been completed. With our panel of lenders ownership of the vehicle(s) rests with them until the final payment is made, however for tax purposes you may be able to claim equipment depreciation and interest paid, against your business income. We recommend you check this with your accountant.
You also have the option of including an upfront deposit or trade-in to reduce your rental commitment, while a balloon payment may also be set at the end of the term (much like a lease residual) to acknowledge the equipment’s
end value. Alternatively, you may choose to structure your rentals to clear the
debt in full over the term of your agreement.
