VEHICLE FINANCE AND LEASING
HIRE PURCHASE
Commercial hire purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit individual circumstances.
Chattel mortgage
Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing a new vehicle. It is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new vehicle or upgrading an existing vehicle.
Novated lease
A novated lease is a three way agreement between the employer, employee and the lender.
The employer, employee and financier sign a novation agreement whereby the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer makes the monthly lease payments on behalf of the employee. Should the employee leave his or her employment for any reason, the novation agreement ceases and the obligations assumed by the employer revert to the employee as the registration is in the employee’s name.
The choice of vehicle remains with the employee ensuring a vehicle to fully meet their needs.
The employer deducts a portion of the vehicle financing and running costs from the employee’s pre tax income reducing the employee’s taxable income and the amount of tax payable. There is no need for the employee to do anything on their tax returns as the employer and lender attend to this.
If a vehicle is purchased using another form of finance, 100% of the costs will be taken from after tax income providing no tax benefit at all. With the option of a fully maintained lease, vehicle running costs such as maintenance, registration, insurance costs and projected fuel can also be included in regular salary deductions.
BFG Finance can also assist with finding the right vehicle as well as offering fleet discounts on the purchase price and running costs.
Consumer car goods
A car loan is suitable when the vehicle is used wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time. The motor vehicle is the only security needed, although in some circumstances a guarantee may also be required.
The loan term and balloon payment can be tailored to suit individual circumstances.
J. P. MOREY - VIEWBANK“BFG FINANCE HAVE BEEN ABSOLUTELY FANTASTIC! THEY HELPED US SECURE A GREAT RATE AND THE PERFECT LOAN PACKAGE FOR OUR INVESTMENT PUCHASE. WE RECOMMEND MARK & JENNY TO EVERYONE WE KNOW.”