Leasing

Finance product options

The vehicle and equipment finance market predominantly uses five products to assist clients purchasing assets:

  • Commercial Hire Purchase
  • Chattel Mortgage
  • Finance Lease
  • Novated Lease
  • Personal Lease

We have described each product to assist you in making the best selection:

Commercial Hire Purchase (CHP)

  • Most common vehicle and equipment finance product
  • Loan term of 12 – 60 months available
  • Supplier/dealer must invoice Finance Dot Com under prescribed format
  • Title passes to the client once all payments are made
  • The GST-inclusive amount is financed
  • Deposits and /or trade-ins can be used to reduce the loan amount
  • Loan can be fully amortised (nil residual balloon) or a residual balloon payment can be factored in to reduce the monthly payments.
  • Other payment structures such as seasonal payments are available
  • Customer interest rate is fixed for the loan term
  • The repayments and residual balloon payments do not include a GST component.
  • For asset depreciation and interest deductibility purposes, the asset is effectively “owned” by the client even though title does not pass until loan maturity.
  • Clients on an accrual accounting basis for GST can claim the full GST component back at commencement of the loan.*
  • Clients on a cash accounting basis for GST must claim the GST component back proportionately across the loan term.*
  • Therefore, clients on a cash accounting basis for GST are likely to be unsuited for a CHP.*
  • *Independent professional financial and tax advice must be sought to determine all tax and GST issues

Chattel Mortgage (CM)

  • Finance Dot Com takes a security charge over the assets to be financed
  • The assets must be “owned” by the client at settlement
  • Supplier/dealer must therefore invoice the client for the goods
  • The Chattel Mortgage may be registered with ASIC and/or the Land Title Office under a Bill of Sale
  • Loan term of 12 – 60 months available
  • The GST-inclusive amount is financed
  • Deposits and /or trade-ins can be used to reduce the loan amount
  • Loan can be fully amortised (nil residual balloon) or a residual balloon payment can be factored in to reduce the monthly payments.
  • Other payment structures such as seasonal payments or GST going back in as a rental are available
  • Customer interest rate is fixed for the loan term
  • The repayments and residual balloon payments do not include a GST component.
  • Fees and stamp duty may be included in the loan amount if desired.
  • For asset depreciation and interest deductibility purposes, the asset is “owned” by the client.
  • Clients on either an accrual or a cash accounting basis for GST can claim the full GST component when lodging next BAS.*
  • Therefore a Chattel Mortgage is suitable for clients on a cash accounting basis for GST*
  • *Independent professional financial and tax advice must be sought to determine all tax and GST issues

If you have any enquiries, feel free to fill out the form below.

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Contact Details

Aurora Place
Level 25, 88 Phillip St
Sydney NSW 2000

Telephone: 02 8211 0586       Fax: 02 9251 0039       Mobile: 0412 141 711

Email: info@financedotcom.com.au

All Mail: P.O Box 1690 Double Bay, NSW 2028

 

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