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)