Operating Lease

At Platinum Direct Finance we can give you access to the best operating lease finance 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 operating lease?

An operating lease is an off balance sheet option to lease a motor vehicle. The finance provider purchases the motor vehicle and rents it to you for a monthly rental payment.

At the end of the operating lease term, the motor vehicle is simply returned to the finance provider in good condition and your finance obligation ends.

How does a operating lease work?

A operating lease is simple, choose a motor vehicle, decide on the term (normally 3 to 5 years), work out how many km's you will travel per year. Pay a monthly lease payment and at the end of the term hand the motor vehicle back to the finance provider.

Operating lease features

• Operating lease terms range from 2 to 5 years
• The fixed operating lease rentals are on a single monthly invoice allowing easy and accurate budgeting
• The operating lease monthly repayment maybe 100% tax deductible
• No capital outlay is required to fund the purchase of vehicles
• The car is funded externally and not shown on the balance sheet
• There are no costs or liability associated with vehicle disposal

Operating 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 operating lease contract.

The monthly repayment or balloon amount is subject to GST.

Who does a operating lease suit?

A operating 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.

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