Plant and Equipment and Motor Vehicles
The use of leasing, chattel mortgages and hire purchase facilities is probably the most common of all financing types in the business world. Buying that new car, of machinery or dozer is made easier by our ability to choose financing structures that suit the cash-flow and useful life of the asset.
Here are a few different types of finance used in the market
A Finance Lease enables a business to have the use of a car or commercial vehicle and the benefits of ownership, while the financier retains actual ownership of the vehicle
A Hire Purchase is a commercial finance product where a business hires a piece of machinery or a car from the financier for a fixed monthly repayment over a term, and has the option to purchase the car at the end of the term.
A Chattel Mortgage is an option where the financier loans money to a business to purchase a car,commercial vehicle or piece of equipment (chattel), and then secures the loan with a mortgage over the vehicle.
A Novated Lease is usually used by employers to package a vehicle into an employees salary package. While the employee is employed, the car is paid for by the business and payments are salary sacrificed. Novated leases are ‘portable’, which means that the employee can take the lease and car with them to another employer. Be aware though that the responsibility for the payments is with the employee. You cannot just leave your job and then stop paying the lease.
Fully Maintained Novated Lease
A fully maintained novated lease is a product that is available to all employees who wish to buy a new car and want to have all vehicle costs paid for with a single payment. This payment can be partially or fully salary sacrificed. All expenses such as fuel, registration, insurance, tyres and servicing can be included in the payment. In most cases the salary sacrifice aspect of this produce allows clients to save taxation over the term of the facility.