Our Business Choice product provides cost effective methods of vehicle ownership for businesses including companies, partnerships and sole traders
Flexible, Cost Effective Path To Ownership
Our Business Choice product provides cost effective methods of vehicle ownership for businesses including companies, partnerships and sole traders. If you are in the market for a new vehicle a Chattel Mortgage can give you a number of advantages that will suit your needs. We would encourage you to Contact Us to discuss this product option to see if it is right for you.
A Chattel Mortgage is a commercial finance product where the financier advances funds to you (as a business) to purchase a vehicle. You take ownership of the vehicle (the ‘chattel’) at the time of purchase and the financier takes out a mortgage over the vehicle as security for the loan. Once the term of the contract is complete and any residual amount is paid, the mortgage is lifted and clear title is passed to you.
A Chattel Mortgage particularly suits businesses who are registered for GST, as they are entitled to the entire input tax credit in the tax period that the funds are borrowed to make full payment on the chattel at the time of acquisition. They must hold a valid tax invoice at the time of lodging the BAS to claim the GST. There are maximum limits set by the ATO. Talk to us to find out more.
Features and Benefits:
- Flexible terms from two to five years.
- A residual value can be placed on the contract allowing monthly repayments to be tailored to a budget.
- Fixed monthly repayments – interest rates remain the same over the contract term.
- Finance is secured against the vehicle allowing for lower interest rates.
- A deposit (cash or trade-in) may be used to reduce the amount financed.
- GST registered businesses can claim back the GST included in the purchase price up to limits set by the ATO.
- GST is not payable on the monthly lease payments nor on the residual (if any) at the end of the contract.
- Income tax deductions are available when the vehicle is used predominantly for work purposes.
- All costs are known upfront
Business Choice gives you a total vehicle operating package and provides you with one statement of costs. We can handle every aspect of the acquisition, running and disposal of the vehicle, eliminating the need for record keeping and allowing easy reconciliation of costs against a known budget.
Operating Lease Accounting Standards
Historically, many business with vehicles accounted for them under an operating lease. That is, the asset was not included on the balance sheet and thus affected the bottom line. In January 2019, the Australia Accounting Standards Board (AASB16) made changes for the obligation to make future payments and the right to use the asset to now appear on the balance sheet. Our Business Choice Chattel Mortgage product provides an alternative (in compliance with the revised AASB16) with better financial results for you.
The Small Things Matter
With LeaseMasters, we give you personalised service, you are able to speak with the same person each time you call for us to better understand your needs and be able to offer the thorough explanations you require, and a complete service from a recommendation of vehicles to delivery and legal documentation. Talk to us today to find out more.
Your New Car
Salary packaging your next car is a good decision, see how it can work for you. Call 1300 303 357 and speak to one of our friendly specialists.
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