TheCarBroker.com.au

Chris Wilson The Car Broker works closely with new and used car finance companies specialists who will assist you in all manner of your finance needs. The areas they mainly work include:

• Fully Maintained Novated Lease
• Salary Packaging
• Chattel Mortgage
• Finance Lease
• Operating Lease / Rental

During the selection brokering process, if you would like to be put in touch with a finance broker just let us know.

Fully Maintained Novated Lease

A fully maintained novated Lease generally includes all of the operating costs, such as fuel, lease rental, servicing and maintenance, registration, tyres and insurance. All of these items are covered by a single monthly payment. The amount is initially calculated based on a budget. Each month (or quarter) the actual expenses are tracked against the budget, and the budget is then adjusted if required.

Salary Packaging

Salary Packaging is an Australian Taxation Office approved means of allowing your employees to effectively restructure their income. As an employee, you can choose to receive your salary as a combination of cash and approved benefits. These benefits are either tax free or taxed at concessional rates. Replacing some of your cash salary with benefits enables you to lower your taxable income to increase your overall after-tax pay.

Chattel Mortgage

A chattel mortgage provides finance for companies and business professionals to purchase goods such as motor vehicles, trucks, earth moving, industrial plant and professional equipment, which are for business use more than 50% of the time.

You take ownership of the vehicle upon delivery, and the finance company secures the loan via a mortgage on the vehicle. The main benefits with chattel mortgages are as follows:

• Tax deductible. The chattel mortgage will produce tax benefits if the vehicle is used to produce assessable income.
• No deposit. 100% of the vehicle can usually be financed under a chattel mortgage.
• Early repayment. The mortgage can be paid in full before the term ends.
• Fixed interest.
• Term. The term can be one to five years.

Finance Lease

A finance lease is used by companies and business professionals to allow them to use business goods (such as a vehicle). At the end of the lease, you may purchase the car, re-finance it or return it to the finance company who would sell it at market value (You would need to make up the shortfall if the net sale was less than the agreed residual value). The main benefits with a finance lease are as follows:

• No initial cash outlay.
• Match cash flow. A finance lease allows the lessee to select a lease term and repayments to suit their cash flow. Lease rentals and residual values can be negotiated within an appropriate range to allow more flexibility in budgeting.
• Frees up assets. The vehicle itself is normally the only security required.

A Finance Lease does not require a deposit, and so gives you immediate use of the vehicle. Payments are fixed for the term of the lease, allowing fixed budgeting for your financial planning. For added flexibility you have the option to refinance the vehicle or make an offer to purchase the vehicle for the residual value at the end of the lease.

To discuss your options (including finance leases) please go to our Pre Approved Finance section and fill in your details.

Operating Lease / Rental

An Operating Lease is essentially a rental agreement where the costs are fixed and there is no residual exposure at the end of the contract. This means that provided return requirements are met, you can simply hand the vehicle back at the end of the term.

• No initial cash outlay.
• Less risk. The risk and responsibility of disposing the vehicle is removed from your business.
• Tax deductible. The operating lease will produce tax benefits if the vehicle is used to produce assessable income.

What is a Hire Purchase?

Commercial Hire Purchase (also known as a Commercial HP, or a CHP) is a finance product that assists a business or an individual that needs to upgrade or acquire a new car or a used car or business equipment.

Unlike a lease, you are free to use a deposit or trade in to reduce the amount you finance using a hire purchase. Using a Hire Purchase agreement, you do not own the car until monies owed under the agreement, including the balloon payment are paid.

You may be able to claim a tax deduction for the depreciation and the interest component of the loan. GST is not payable on the Commercial Hire Purchase repayments, or on the balloon payment.

Benefits:

• Hire Purchase repayments are fixed for the duration of the loan
• You can use a balloon to reduce your repayments, or pay the loan off in full
• Deposits are generally not required
• Repayments can be set up on a monthly, quarterly or season basis

Hire purchase duration can be between 12 months to 60 months.