MOTOR VEHICLE

Motor Vehicle Loans


Motor vehicle loans are a popular option that allow you to get use out of your vehicle while spreading your payments over a period of time to make your finances more manageable. In addition to sourcing the interest rate and terms available to best suit your needs, we work with your advisers to ensure the structure is a perfect fit for you and your circumstances. Many dealers will offer finance, but interest rates may be higher than those offered by other lenders. It pays to hunt around for the best deal, and our experts can help you find the best option.
Contact us to help you determine which options are best suited for your business. We can help you better understand your cash flow and get you the equipment you need.
Numerous types of motor vehicle finance options are available, including the following: 

If the vehicle is being used for work purposes at least 50 per cent of the time and you have an A.B.N., it may qualify for a business finance package. Your options include a chattel mortgage, a commercial hire purchase agreement or leasing.

Because the car is offered as security, you may be able to borrow at a lower rate than for an unsecured personal loan. Consumer car loans are also generally based on a fixed interest rate, so you will know exactly how much you will pay each month for terms between one and seven years. Standard consumer car loans will see you paying off the vehicle on a monthly, fortnightly or weekly basis

Car loans can be obtained for new and used vehicles, although some lenders may not agree to provide finance for a car over a specific age. Loans are not just restricted to cars. They can be used to purchase many types of vehicles including motor bikes or even campervans.

We offer a New Vehicle Buying Service via an independent business partner. You provide all the details you require in a vehicle, and they will search an extensive range of dealers to provide you with a very competitive price for a very minimal cost. Delivery can often be arranged directly to your door.

Chattel Mortgages

A chattel mortgage is a loan for companies and businesses to purchase motor vehicles, trucks, earthmoving and industrial plant and professional equipment for business use. Security for the loan is a registered mortgage over the equipment financed.
Benefits include the following:
  • Flexible repayment options depending on your business requirements including monthly, quarterly, seasonal and annual.
  • Choice of paying a deposit or not – 100% finance may be available (including GST)
  • You own the goods / vehicle upfront and pay for them later – leaving valuable cash in the business
  • You can choose an option with a balloon payment at the end of the term to reduce repayments over the life of the loan
  • Fixed interest rates apply, providing a hedge against possible rate rises.
  • You pay no GST on instalments 

Operating Lease

An operating lease is a rental agreement available to businesses, allowing an employer to avoid the risks normally associated with ownership, including no residual value liability.
Benefits to the employer:
  • Lease payments may be fully tax deductible if the vehicle is used for legitimate business expenses – subject to Tax Office depreciation limits
  • Working capital is preserved
  • No deposit is required on the vehicle
  • Fixed monthly finance charge makes it easy to budget for the cost of the vehicle
  • All running costs associated with the vehicle may be included in a single monthly charge
  • Business credit lines are not disturbed 

Novated Lease

A novated lease is a finance lease agreement between an individual (employee), his/her employer and a finance company. In this case, the employer makes monthly repayments on your behalf via a salary sacrifice program or car allowance.
Benefits for the employee:
  • Flexibility with the choice of vehicle to meet your business and personal needs
  • You can take the vehicle with you when you change jobs
  • Tax benefits as financing may be paid with pre-tax dollars (remembering there may be Fringe Benefits Tax to consider) 
Benefits for the employer include an easy way to add value to an employee’s remuneration package. The vehicle is the responsibility of the employee, so there are no costs to the employer associated with disposal of the vehicle should the employee leave. 

Commercial Hire Purchase (CHP)

A CHP is a contract in which the financier operates as owner of the vehicle and allows you (the hirer) to use the vehicle in return for regular payments. Unlike in a leasing arrangement, title passes to the hirer at the expiration of the term. A balloon payment is an option (within taxation guidelines) or the contract may be written down to a nil balance if desired.
Benefits are:
  • Fixed monthly finance charge
  • Business credit lines are not disturbed
  • Depreciation and interest content are often fully tax deductible – subject to Tax Office depreciation limits.
  • Working capital is preserved
  • No deposit is required
There may be reduced tax advantages with short-term contracts, and you will need to pay out the contract if changing vehicles.

Contact us for advice at no obligation to you. 
We look forward to helping you realise your dream purchases.

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