A secured car loan allows you to use your car as security for the loan, which reduces the interest rate that you pay.  You also get the security of a low fixed interest rate.  You can choose a term of one to seven years.

In a standard lease, the Financier retains ownership of the vehicle throughout the term of the lease.  However, in return for periodic payments, you the customer have full use of the vehicle.  Lease payments are normally tax deductible if the vehicle is used to generate income.  At the end of the lease agreement, you take ownership of the vehicle after paying a residual amount.  A standard lease is great for businesses who want to preserve their working capital with 100% finance.

A ‘novation’ agreement is entered into between an employee, employer and the Financier under which the employee’s obligation for the lease payments is met by the employer.  A novated lease can be established to provide an employee a benefit, such as a vehicle, under circumstances that may be financially advantageous to both employee and employer.

A hire purchase arrangement is an agreement to purchase a vehicle (or plant & equipment) subject to payment terms.  During the term of the agreement, the Financier owns the vehicle.  Ownership is automatically transferred to you when you make final payment.  You have the option to purchase the vehicle at any time during the term of the agreement and repayments can be tailored to your cash flow.

Under the Chattel Mortgage agreement, you may claim back the GST paid on the vehicle in your next BAS statement, maximising cash flow potential.  A Chattel Mortgage is often suitable for businesses who account for GST on a cash basis.  The amount claimed back can be put towards repaying the loan, thus reducing the loan period and the total payment.  The amount claimed back may be retained to assist immediate cash flow.  A Chattel Mortgage can offer great flexibility in the amount you may have as a residual.  You can tailor your repayments to suit your budget.