Are you a company, sole trader or individual who uses your vehicle to generate income?
Project 1 FInance are here to guide you through everything you need to know about car leasing. Our consultants are experts when it comes to these kind of products and will do everything they can to help you.
What is car leasing?
A car lease is a business loan that involves you only paying for a portion of the car’s actual cost. You end up only paying for the portion of the car for the number of years that it was leased for. Lease terms can vary from two to five years and you can opt to have a larger residual amount at the end of the agreement, thereby reducing your monthly payments.
All costs are known in advance and the monthly payments are fixed – these payments can also be made in advance. At the end of your lease agreement, you will have the choice of trading it for another vehicle or refinancing the remaining balloon amount and carry on leasing.
There are tax deductions – however, only if the vehicle is used for business purposes. The GST contained in the purchase price can be claimed back by the financier, as only the vehicles price exclusive of GST is financed, which lowers the monthly payments.
If the amount borrowed is below the depreciation limit, the lease rental can be claimed as a tax deduction.
There are tax implications – the GST is payable on both the monthly payment and the residual value of the car lease. However, if you are registered for GST then some may be claimable as an Input Tax Credit on your next BAS.
You may also be interested in Hire Purchase, under which the interest and depreciation are tax deductible. You can find out more about hire purchasing and how we can help you in this area here.
Choosing the right lease structure can save you money in extra interest, penalties and missed tax deductions.
A new financial brokerage company, Project 1 Finance Pty Ltd has access to the best car leasing deals on the market – all offered by Australia’s most reputable lenders. With consultants who can offer obligation-free advice and the possibility of a better deal than if you negotiated the same product with banks and other lenders, enquiring about car leasing with us is, quite simply, a no-brainer! To obtain further information or to get access to a car leasing quote, why not give us a call today or ask online?
Why choose Project 1 Finance?
Fix loan terms
We only deal with trusted Australian lenders, who are viable and willing to assist in negotiating a flexible loan, tailored to your needs.
Project 1 Finance Pty Ltd is a brokerage that works with its clients to ensure they know the real deal and what is being offered is the right fit for them.
We work effortlessly to find you the best loan solutions at the most competitive rates