Car Lease or Finance Lease

At Platinum Direct Finance we can give you access to the best car lease financing option in Australia. We can also offer all clients the lowest rates and we guarantee to beat any written quote from a car dealer, bank or finance broker.

What is a car lease?

A car lease is a rental agreement where the finance provider purchases the motor vehicle on behalf of the customer who in turn pays the financier a fixed monthly rental amount for the term of the car lease.

After the final payment has been paid, (residual amount which is set by the ATO) the customer takes ownership of the motor vehicle.

A car lease is also known as a finance lease, auto lease, vehicle lease or asset lease.

How does a car lease work?

The lessor obtains legal ownership of the motor vehicle to be leased, by paying the amount as advised on the (vendor's)supplier's invoice. The lessee then has the use of the car and pays rent for that use for the term of the finance lease contract. During the term of the car lease agreement, the lessee merely pays rent and does not obtain ownership or equity in the car they are leasing. Under a car lease agreement the lessee is responsible for maintenance and running costs, car-insurance and registration fees for the leased item.

Car lease features

• Low establishment fees and monthly fees, no payout penalties
• Car lease terms range from 1 to 5 years
• Interest rate is fixed for the term
• Car lease monthly repayments are fixed for the term
• The car lease monthly repayment maybe 100% tax deductible
• Residuals are set by the ATO and reduce your the repayment
• GST on the purchase price of the vehicle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
• GST on the monthly repayments may be claimable on your BAS

Car lease taxation implications

If the amount to be financed is below the ATO depreciation limit, $57,180, you may claim the full lease rental as a tax deduction. Above the depreciation limit, it's similar to a commercial hire purchase agreement where the interest and depreciation up to the motor vehicle's value can be claimed.

GST will be charged on your monthly payments, however it can be claimed back on your Business Activity Statement (BAS) over the term of the Car Lease contract.

The monthly repayment or balloon amount is subject to GST.

Who does a car lease suit?

A car lease suits someone who is going to use a motor vehicle predominately for business use, therefore this car financing product is used by Companies, Trusts, Sole Traders, Partnerships and ABN holders.

Which car financing product is right for you?

Deciding on the right car finance option for your situation can sometimes be confusing. commercial hire purchase, chattel mortgage, car lease? are just a few of the car financing options, Platinum Direct Finance can assist with your decision making and make the process simple and easy. Use our "Which car financing option is right for you?" today!

Why use Platinum Direct Finance?

The Platinum Direct Finance group of companies will finance over 800 million dollars worth of equipment and car finance this year! Due to this volume and buying power, we can give our clients access to the best boat finance rates and boat financing products across Australia.

Need further information?

If you require further car finance or car leasing assistants, either complete our friendly enquiry form or call an experienced finance consultant on 1300 554 553 today.

Enquire Now Apply Now Instant Quote