Why Lease a Car
There are many benefits of a
car finance lease as opposed to buying a car yourself with a traditional car loan. The benefits can be both better financially and also more convenient.
From a financial point of view, a business owner can more easily manage cash flow and potentially lower the amount of tax their business must pay at the end of the year. Here are a few points to consider when looking at buying a business vehicle using a car lease.
- Flexible terms over two to five years
- Fixed payments over an agreed time period
- Costs are tax deductible
- Lease payments are made from pre – tax income
- The lease is secured against the vehicle, lowering the interest rate
- Payments can be made in advance if this creates a tax benefit for you
- GST can be claimed on your Business Activity Statement
When thinking about the convenience the positives are as follows
- Easy to always drive a modern vehicle, by renegotiating after the lease period expires
- No depreciation and other hassles to concern yourself with
- More flexible payment terms than a car loan
- Excellent choice for salary packaging because you do not have to actually buy the vehicle
- A way to trial a car when you are not sure if you want to own it long term
For more information on whether a
car lease will suit your business, why not call us today, or fill out the simple enquiry form on this website. We look forward to speaking to you soon.