Finance Lease or Car Lease

The main features & benefits of a 'Finance Lease or car Lease' are

  • Is that you actually are NOT the owner of the vehicle of goods until the lease is actually paid in full.
  • This is because the lender / financier lets you as the customer to have full usage of the goods or vehicle, while the lender/financier retains the actual ownership until the lease is paid in full on a monthly repayment basis
  • With a Lease you also determine what the residual amount would be at the end of the lease term or agreement
  • Once you have the monthly repayments and you are left with the last instalment being the residual, you have the choose of either refinancing the residual amount for a further term of up-to 24 months, (depending on the lenders guidelines), or trading it in for a new car (and paying back the residual payment from the trading amount) or take ownership of the vehicle or goods, by paying the financier/lender the residual amount owing.
  • You have fixed monthly repayments, over a term of up-to 60 months and on a fixed interest rate
  • Leasing is usually used for sole traders, partnerships, companies and individuals, who predominately use the goods/vehicle for business purposes.
  • If you are registered got GST purposed, you can only claim part of the GST contained in the lease rental and the residual value in the next BAS statement
  • The depreciation limit is $57,466, commonwealth luxury cat tax threshold for 2010-11, effective from 01st July 2010., you can therefore only claim the lease rental amount is under $57,466
  • If above this amount of $57,466, then only interest charges on the lease and depreciation up to the value of depreciation limit can only be claimed (being $57,466)

 

Melbourne Car FinanceIf you have any queries regarding any Finance, Mortgage or Insurance in Melbourne
or any other matter,
please don't hesitate to contact our professional team at FLR Solutions on:

0415 280 555 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or Simply fill out our enquiry form and we will promptly contact you

 

 

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