Selecting a Motor Vehicle is a relatively easy and enjoyable task; however that is often where the fun ends.  Financing the vehicle in the most tax effective manner is a far more complicated exercise. 

The difference between a well structured contract and an inappropriate finance contract can often end up costing you thousands of dollars, often without you even knowing it!  

Many issues need to be considered prior to structuring a contract and this applies equally to Corporate borrowers as it does to individuals. 

Our years of experience in financing motor vehicles, ensures that all the questions are asked and you end up with the finance that not only meets your individual requirements but will also maximize your allowable tax deductions in the process.

Being accredited with a number of different lenders means that we are able to attain the most competitive interest rates in the market at any moment and save you many hours of your valuable time.

Following is a brief description of the various types of finance contracts that are available:

FINANCE LEASE:

• No equity needed – 100% funded.
• Repayments are usually fully tax deductible.
• Repayments can be structured to suit you, the borrower, and maximize allowable tax deductions.
• Motor vehicle owned by the lender and leased to you.
• A residual payment is structured into the contract.
• Upon completion of the contract you will have the following options:
• Purchase the vehicle for the Residual value
• Re-finance the residual amount for an extended term
• Trade the vehicle, pay out the residual and retain the difference

COMMERCIAL HIRE PURCHASE:

• Equity can be used or 100% funded.
• Business tax deductions may be claimed on interest repayments and vehicle depreciation.
• You have ownership of the vehicle upon final payment.

CHATTEL MORTGAGE:

• Interest and depreciation may be claimed.
• Vehicle is owned by you – the borrower.
• Get GST back upfront as GST is built into the purchase

NOVATED LEASE:

• Employee can get to choose the vehicle and benefit from any equity in the vehicle.
• Portable between employers allowing employment flexibility.
• A three-way agreement – lender, employer, employee
• Tax effective as the employer makes payments from the employee’s pre-tax income (Salary sacrificing)

FLEET LEASE:

• Suitable for companies that have a fleet of vehicles.
• Maintenance of vehicles can be included in the lease.
• Can be a standard lease where the borrower is responsible for the residual or an operating lease where the lender in responsible for the residual.