Car and Equipment Lease
Car and Equipment Lease Overview
A lease is a great way to purchase a vehicle or equipment you need to assist your business growth.
There are different reasons to take out a lease and the most common reason to lease is to expand your business, a lease can also help you renew your fleet or purchase equipment to increase productivity or efficiency.
Lease options vary from a lease term of 1 to 7 years, the residual on the lease can be nominated by you and this is commonly in the 30% range for leases.
Lease terms can differ depending on the type of equipment or the age of the equipment when the lease is taken out.
We have provided a summary of different lease types below but if you prefer to have a chat then contact us and speak to a lease specialist who will be able to assist.
Lease Types
CHP Lease
A CHP lease is a popular way to purchase a vehicle for business purposes, whether you own your own business or have a car allowance from your employer a CHP lease is a smart way to get into a vehicle.
One of the reasons that a CHP lease is a common choice is that the person or business taking out the lease becomes the owner of the vehicle at the end of the lease term.
Some of the other benefits of a CHP lease are listed below:
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The interest on a lease can be claimed as a tax deduction |
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The depreciation of the asset on the lease can be claimed |
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You can choose for a nil residual so you own the asset at the end of the lease term |
AussieWise Finance Group has a number of lease options and lease providers to choose from so contact us and have a chat to a consultant about which lease suits your needs.
Novated Lease
A novated lease differs from a CHP lease in a sense that there are some pre-tax benefits as vehicle expense are derived directly from the employer and taken out of your gross income.
Let’s take a look at some of the benefits of a Novated Lease:
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A novated lease allows you a flexible choice of vehicle type |
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Expenses for running a vehicle are derived from pre-tax income on a novated lease (salary packaging) |
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The employer can benefit from a novated lease as they don’t need to maintain a fleet of vehicles |
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A novated lease can potentially lower your tax threshold (please seek independent advice) |
A novated lease is just another options that we have available for the lease of a vehicle and we can arrange the necessary paperwork with your employer on your behalf.
Finance Lease
A finance lease is similar to renting a vehicle, what happens with a finance lease is that the asset is owned by the finance lease provider and is handed back to the lease provider at the end of the lease term.
This can be a popular lease option for those who want or need to update their vehicles on a regular basis. Below we have touched on some key points of a finance lease:
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Lease holder does not own the asset, the asset is always owned by the finance lease provider |
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Rental payments on a finance lease are generally tax deductible |
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A fixed lease repayment and lease term apply for the life of the lease |
To find out more about finance lease options simply contact us and one of our lease consultants can assist.
What type of equipment can I lease?
A ease is not limited to a vehicle and is available for equipment as well.
As a business owner you may not have funds available to purchase equipment outright so a lease is a great option.;
An equipment lease can help you expand your business, increase productivity or increase efficiency for example.
Along with these potential benefits there are also some potential tax benefits by way of claiming the interest component of the lease and the deprecation of the equipment itself.;
No matter what type of business you have there is a lease option which can assist you so contact us and one of our lease consultants will help you find the right lease.
How can we help with your lease requirements?
We can help you by providing a range of lease options covering a CHP lease, Novated Lease, Finance Lease and Equipment Lease.
Our ability to source the right lease option comes with the fact that we have a number of lease providers available to us and in turn this means that these lease options are available to you.
Contact us to see what we can do for you and your lease needs.
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