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Vehicle lease

Discussion in 'The Pub' at netrider.net.au started by MadPillion, Jun 12, 2007.

  1. ?? It's not a bike DAMMIT!!


    Anyone here lease a car??
    Looking into a 3 year lease of a minivan for an organization I work for..
    Any advice I can get will be well received

    Heres hoping THIS makes sense..

  2. Madpillion your posts are alway a bit left of centre! Look leasing is not complicated, but you are much better off speaking to your accountant than getting free advice off the internet. But yes I have leased cars and bikes for about 15 years using a mix of HP and novated leases. Check what is included in the lease and what they will charge extra for.
  3. Hi Mad Pillion,

    Im a mortgage and finance broker and have quite a few clients on CHP (Commercial Hire Purchases), Novated Leases, Chattel Mortgages etc.

    As matti said, its best to speak to your accountant first if you're not too sure on how they work and how best to structure it for taxation purposes.

    Here's a basic example:

    Minivan cost: $30,000
    Monthly pmt: $xxx
    Residual: 30% or $9000
    Term: 3 years

    CHP's enable you to make minimal monthly repayments and when the term ends, you can opt to pay the balloon amount outright or you can get a loan to pay out the balloon.

    Hope this helps a little :)

  4. Many thanks.. :grin:
  5. Hey Miss DJ, what's a chattel mortgage? Is that were you put up something as security??
  6. Hey :)

    Chattel Mortgages are for companies and/or business professionals to purchase goods such as motor vehicles, trucks, etc which are predominately for business use (i.e. more than 51%)

    Its also used for tax benefits if what you're financing is used for income.
    However you should always speak to your accountant re: tax benefits...

    Also, yes. What you're buying is used as the security for the loan.

    Individuals (i.e. non companies) can use novated leases as a similar structure...