If you are purchasing a vehicle which will be used predominantly for business purposes then a Chattel Mortgage might be the best finance option for you. Under this agreement the lender agree to provide the funds for the vehicle, ownership belongs to the customer with the lender holding security till the loan is paid in full.

Chattel Mortgages have many of the same benefits as a Consumer Loan (i.e. flexible loan terms, fixed interest rates and monthly repayments etc.), however they also have a couple of extra benefits that are solely available to Chattel Mortgages. These benefits are based around the tax and GST costs of the vehicle, namely as the vehicle will be used for work, there are tax deductions available. If you are registered for GST you may be able to claim the GST component of the vehicles purchase price back.

If you are in the market for a new work vehicle, give us a call and one of our Commercial Lending specialists can run you through the options available to you.

What are the benefits of Personal car finance?

• Fixed repayment
• Fixed rate
• Terms from 12 to 84 months
• Residual payments
• Tax deductions possible
• Low doc

Benefits

There are several advantages of this type of car finance for business owners including tax breaks and GST recompense when using the loan purchase in business statements. The other distinct advantage is that your business is able to take ownership of the vehicle straight away. Other benefits include: Flexible Chattel Mortgage terms 24-60 months. Residual Value/Balloon Payment can be used to decrease the regular payments. Fixed interest rates. Repayments are fixed for the term of the loan. Associated costs are known in advance. Deposit can be used to decrease repayments. Tax deduction for interest and Depreciation. GST charged only on the residual value. For GST registered businesses GST component can be claimed on the vehicle purchase price. Lower interest rates as finance is secured against the chattel

Tax Information

The use of the car for business purposes allows the lessee to claim associated expenses through their business. This means that there are some distinct advantages for the customer to increase affordability of purchasing the vehicle for business purposes. GST is charged on the purchase price of the vehicle only. GST component of the purchase price can be claimed upfront.

Whether it’s a standard finance lease, operating or novated our finance specialist can arrange the perfect package for you.

Finance lease is an agreement between a financial lender (lessor) and yourself (lessee) where the lessor purchases a vehicle for you and for you to use for the duration of the loan and in return you must make regular payments. Lease agreement are usually used by private companies who wish to acquire an asset at the end of the lease by offering to pay the pre-determined ‘residual value’. Terms, residuals and rental frequency can be structured to suit your specific cash flow requirements, or to maximize tax benefits during the lease period. At the end of the car loan you are able to pay the residual amount and take ownership of the car. The benefit of this car finance means flexibility in the contract terms, residual amount and repayment schedule. This type of leasing may include the following benefits fixed interest rates, tax breaks and GST benefits.

• Full purchase can be financed.
• Asset itself can be used as security.
• Tailor your repayments by setting a comfortable residual amount.
• Interest rate is fixed.
• Repayments are fixed for the term of the loan.
• Options at the end of the lease for resale and upgrade, re-lease and ownership.
• Choose repayment frequency to suit your business cash flow.
• Claim full repayments as a tax deduction – dependent on business usage percentage.
• No GST is charged on the purchase of the car as the financier claims GST via ITC.
• Claim running expenses of your vehicle.

A Novated Lease is a three way agreement between: The finance provider, an employer and an employee.

How does a Novated Lease work?

Under a Novated Lease, the employer pays the monthly car lease rentals on behalf of the employee and provides the vehicle for the employee to use as part of their salary packaging arrangement. If employment ceases for any reason or the Novated Lease contract is finalised, the Novation ceases and any obligations by the employer revert back to the employee.

What are the benefits of a Novated Lease?

• Options at the end of the lease for resale and upgrade, re-lease and ownership.
• Choose repayment frequency to suit your business cash flow.
• Claim full repayments as a tax deduction – dependent on business usage percentage.
• Claim running expenses of your vehicle.