CAR FINANCE

LEASE

(N.B. Information provided as a guide only. Please consult your chosen provider to obtain details of the product before making your decision)

PAYMENT

• - monthly lease payment; no deposit is required
• - when the lease expires you have the option to pay the residual and own the car
• - check payment with Loan Calculator

• - the financier owns the car - until you choose to pay the residual
• - the car is the security.

• - lease payments are totally tax deductible
• - lease is NOT counted as liability on the Balance Sheet.
  (please consult your Accountant or Tax consultant on specific tax advice)

• - typically monthly or fortnightly repayment of principal and interest
• - terms range from 1 to 5 years
• - check payment with Loan Calculator

• - the amount borrowed can include car purchase price and if required registration costs, on-road costs, loan insurance, car insurance
• - the minimum loan amount is typically $10,000 and maximum age for used cars is 7 years.

• - you may be able to claim part of the interest and depreciation charges as tax deductions if the car is used for business
• - a loan is a liability on the Balance Sheet.
  (please consult your Accountant or Tax consultant on specific tax advice)

• - you own the car but you may need to provide some form of additional security for the loan e.g. real estate.

HIRE PURCHASE

(N.B. Information provided as a guide only. Please consult your chosen provider to obtain details of the product before making your decision)

• - monthly repayment of principal and interest; no deposit is required
• - when the Hire Purchase period finishes you must pay the remaining amount ("balloon amount") to obtain ownership of the car.

• - the financier owns the car until you pay the residual
• - the car is the security.

• - interest is tax deductible and depreciation can be claimed.
  (please consult your Accountant or Tax consultant on specific tax advice)