PFP will review the best options when purchasing motor vehicles. The most common motor vehicle leases are:

Leasing your motor vehicles doesn’t tie up your valuable capital and repayments can be structured to your budget over a period of 1 – 5 years. Your taxation advisor should assist you with the details on planning an effective tax position.

Car Lease/Finance Lease
A Car Lease or Finance Lease, enables the borrower to have the use and benefits of ownership while the lender retains ownership of the vehicle. At the end of the lease, the borrower can either pay a ‘residual’ value and take ownership of the vehicle, trade it in or re-finance the residual and continue the lease.

No deposit is required. Tax benefits give the borrower the full benefits of depreciation and interest. GST however is claimed by the lender, not the borrower. Therefore, amount financed is pre-GST thereby keeping monthly repayments lower. The borrower also has the ability to make advance lease payments for tax deduction purposes.

Commercial Hire Purchase (CHP)
Novated Lease
Chattel Mortgage
Operating Lease