Thinking of your dream car but haven't enough funds to purchase it outright?
Leasing might be the option for you to make your dream come true. Equipment or asset finance is a convenient way, and often a tax effective form, of funding motor vehicles and/or business plant and equipment. Motor vehicle leasing allows you to make lower repayments than with traditional loans. It is financing the use of a vehicle for a specified period of time. Lease facilities can be accessed by business and or employee applicants.
You can choose how long you want to drive your car. All you need to do is select a leasing period of typically between 24 and 60 months. The vehicle of your choice will be yours to drive for this time and is owned by the finance company. If you decide you want to keep driving your car you can make it fully yours by paying the residual value to the financier at the end of the lease term.
The benefits of leasing
- Drive a car you wouldn't be able to ordinarily afford or own outright!!
- No initial outlay required
- You select the length of the lease
- Potential to buy the vehicle after the lease period
- Potential tax benefits with lease payments
- The financed vehicle is the principal security
- No need for property assets supporting the transaction
- Flexibility of structure
- The money you don't spend upfront can be invested in other areas
- Far more attractive interest rates to personal loans
TYPES OF LEASING
Lease agreement
This is a rental agreement where the finance company buys the asset and you would rent it for an agreed monthly amount. No deposit required. The chosen lease company will consider your interest in buying the asset at the residual value.
Novated Lease Agreement
This option is suitable for individual employees with motor vehicles included as part of their salary package. The lease is in the employee's name with the employer remitting the lease payments deducted from the salary. As the payments are made from gross (pre-tax) dollars, tax savings occur to the benefit of the lessee (employee). In case of changed employment circumstances the employee is responsible for the ongoing payment commitment.
Chattel Mortgage
This form of lease is secured by the financed asset. The party obtaining the finance will have immediate ownership of the asset with no initial outlay. There are taxation benefits if the asset is used to generate taxable income.
Hire Purchase Agreement
During the term of contract the finance company owns the asset but would pass the ownership on to the hirer after final payment. The asset can be purchased at any time during the contract.
THE LEASING PROCEDURE
With Bagg Financial there is no need to shop around or compare prices. We will do that for you by delivering expert and personal service right to your door. Bagg Financial has access to a range of major banks and financial institutions providing motor vehicle and equipment finance.
Save time and make it happen with Bagg Financial.
It is as easy as this:
- Choose your car
- Talk to one of our expert consultants and finalise a lease to suit your requirements
- Drive away and enjoy!
Taxation and GST implications
It is recommended that applicants seek independent advice on all taxation and GST related issues as the treatment is varied depending on type of lease and the applicant's individual circumstances.
Lease your next car today!!
 Enquire Now
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