Finance
Want to get car Finance?
Why does it have to be so complicated..?! Why do you need a degree in finance, with a Post-grad in taxation to understand it all properly!? Well, we don’t have an answer to that I’m afraid, but we do understand the different ways you can pay for your car, what’s best given your circumstances, and we can help arrange it all for you too.
We work with lots of different lenders, and with their help you’ll be able to compare rates and terms, to ensure you’re getting the best deal possible.
Here’s a quick overview of the main car finance options
Car finance for you
As a regular, or irregular, person with no business use who wants to buy a car, there are a few car finance options on the table.
Chattel mortgage
A chattel mortgage is where the finance company lends you money to buy a car, and then holds a mortgage over it until you pay them back in full. You need more than 50% business use, and it’s very popular with small businesses because it comes with lower interest rates, flexible payments and potential tax credits.
Novated leasing
A novated lease is where you allow your employees to package the costs of owning, and
running a car, into their salary. This makes it cheaper, as they don’t pay GST on the purchase
price and most of the running costs, and it also reduces their taxable income. It also has the
potential to reduce your payroll tax, as your overall salary payments have reduced too.
New car finance
This kind of car finance is available if you’re buying a ‘newish’ car, generally less than two years old. You can choose to lower the rate if you give them security over the car, or if you’d rather not – it’s unsecured finance with a higher rate, but less restrictions
Commercial hire purchase
A commercial hire purchase is where the finance company buys the car, and rents it to you over a set period of time. Your payments generally pay off the loan, and the it’s yours at the end of the term, if you want, or you can simply rent another one.
Used car finance
Pretty much the same as above, but with cars that have been around the block a bit more.
Business car lease
A business car lease is where the finance company buys the car, and leases it back to you. you’ll pay fixed monthly costs for a set period of time, and at the end, you have the option to pay a residual value and own the car outright.