A finance lease is a popular business solution as it enables you to secure the vehicle of your choice today without the need for a deposit. This allows your business to retain your capital for other purposes.
At the end of your lease period, there are a number of options available to you. There may also be an opportunity to extend the lease for a further agreed term, trade the vehicle in on a new vehicle or make an offer to purchase the vehicle.
A novated lease is a popular salary packaging tool providing an opportunity for employees to incorporate a motor vehicle of their choice into their salary package.
A novated lease is an agreement between an employee, the financier. The employee and their employer enter into a novation agreement with the financier, under which the lessee's obligations are transferred to the employer. This agreement allows the employer to make payments of the monthly rentals from the employee's salary tax effectively.
If the employee changes their employment during the term of a novated lease, the payment obligations revert to the employee allowing the employee to re-novate the lease to their new employer. As a result, the employer will not be left with any unwanted vehicles.
An operating lease is a simple long term rental agreement for businesses which allows a vehicle to be leased over a choice of terms and kilometre usage programs.
The operating lease is an off balance sheet asset funding option, where one simple monthly rental can incorporate almost all vehicle running costs.
At the end of the term, the vehicle is simply handed back which avoids the risks often associated with any residual value liability.