Car Leasing Australia
Not all leasing options are the same. There are three basic types of leases available in Australia. Each type of lease generally best suits a different kind of car buyer. At CarLoans.com.au we specialise in ensuring your vehicle finance is tailored to your particular needs, and your financial situation and structure. That’s why we offer a range of innovative finance products. Car leases operate on the basic premise that the lender owns the vehicle, and the borrower rents (leases) it via monthly payments. However, there are three different leasing options available, and it’s vital to tailor your lease to your personal situation. We can help you with up-to-date advice here.
A novated lease is often a great way for salaried employees to purchase a new vehicle. Basically, it allows the finance to be paid using the pre-tax part of an employee’s salary. That maximizes spending power by using funds that would generally otherwise be lost as tax to pay the lease, and it also helps reduce the employee’s taxable income. A novated lease is a simple, three-way agreement between the employee, the employer and a financier. It’s easy to set up, it doesn’t impose a significant administrative burden on the employer, and it can even be packaged with a ‘fully maintained’ option to smooth out the operating costs.
An operating lease is set up in the same way as a finance lease (above) but the borrower does not take on the obligation to pay the residual value. The vehicle itself is merely handed back to the financier at the end of the term of the lease. What this means is that the borrower does not have to worry about whether or not to pay out or refinance the residual amount.
A finance lease is a common loan type for vehicles used in business. The vehicle is actually purchased by the financier, and rented out to the borrower in monthly installments. This generally involves a fixed monthly lease payment and a residual amount payable at the end of the term. At the time of purchase, the borrower typically locates the vehicle at a dealership and negotiates a price in the conventional way – the subsequent finance arrangement is merely structured with the financier as the purchaser.