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Car Lease (Finance Lease)

A Car Lease, or Finance Lease, is a commercial finance product enabling the customer to have the benefits of ownership and use of the vehicle, whilst the financier retains the actual ownership of the vehicle.

How does a Car Lease work?

The financier purchases the vehicle on behalf of, and as instructed by, the customer, who then leases the vehicle back from the financier, paying a fixed monthly payment. At the end of the lease the customer then has the option to either purchase the vehicle from the financier (at an amount agreed upon at the start of the lease), trade the vehicle in for a new one and take out a new car lease, or continue on with the lease with any residual amount (again, agreed upon at the start of the lease).

Benefits to Business

  • Fixed interest rate and monthly lease rentals.
  • Flexible lease terms from 1 to 5 years.
  • Lease instalments tailored to match your business cash flow.
  • No capital outlay (upfront deposit) required.
  • Fully tax deductible to the extent the vehicle is used for business purposes.
  • Ability to make advance installments.
  • Rental installments are structured on the vehicle purchase price ex GST.


  • As the financier is the legal ‘owner’ of the vehicle, they claim the GST on the initial purchase of the vehicle. Hence the lease term is structured on the vehicle purchase price EX GST.
  • GST is charged on both the monthly rental and the residual value at the end of the lease.
  • GST registered customers can claim some or all of the GST contained in the monthly rentals and residual value as an Input Tax Credit in their BAS.

For further information on a Car Lease please contact us, or you may simply apply online.