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Leases Explained | Leases Explained |
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This is the Smart and Easy way to run and track your work vehicles. Carsmart gives you control over your vehicle expenditures:
How much time do you spend worrying about your work vehicles instead of running your Business?
CarSmart takes all these hassles of your hands. With CarSmart, you can account for all your vehicle related expenses, whether for sevicing, tyres or fuel. And best of all, you don't have to settle your bill until you receive your month end invoice, instead of having to pay different suppliers throughout the month. Your invoice will detail your vehicle related expenses, making it easy to claim your input tax credits from the ATO. Most fuel providers offer a discount on card prices- CarSmart offers you discounts on PUMP prices, which amounts to more. And with access to over 2,300 Caltex, Woolworths and Ampol fuel stations Australia-wide, you can't lose! For more information or to apply for a card please phone Paul on 02 4733 7579 or send us an e-mail
With a Finance Lease the finance company purchases the vehicle and then leases it back to you over a fixed term. At the end of the term you can elect to pay out the residual and own the vehicle outright or to trade it in. The other option is to refinance the residual amount owing for a further period. Fixed lease payments make budgeting easier, and flexible contract terms and residuals enable you to tailor the monthly repayment to suit your requirements. On purchasing the vehicle the finance company will claim back the GST, this means you finance the purchase price less GST. For example the finance company purchases the vehicle of your choice for $33,000, they then claim back the $3,000 GST and lease the vehicle to you for $30,000. Lease payments are made from pre-tax income, not after-tax profits and where a vehicle is used for income producing purposes a tax reduction may be claimed. Lease payments attract GST, which may be claimed back by business owners and companies registered for GST. There are a number of tax office rulings which affect leasing. Where the amount financed is below the Depreciation Limit, a lessee may claim the monthly repayment as a deduction. Above the Depreciation Limit, interest charges on the contract and depreciation up to the value of the Depreciation Limit are tax-deductible. Other features of leasing are:
FULLY MAINTAINED OPERATING LEASE
An Operating Lease is an off-balance sheet leasing option with the future residual assetrisk remaining with the leasing company. MAKE COST EFFECTIVE SAVINGS Budget Leasing can offer you many ways to minimise the costs associated with your fleet.Like the services offered to larger fleets, Budget Leasing takes care of all maintenance and administration considerations for you. Key features:
GST accounting is also made simpler with all vehicle expenses incorporated in a single monthly tax invoice/statement. MINIMISE YOUR RISK
Budget forecasting is made easy with your rental payments fixed for the full term of the operating lease. When the lease term expires,
Providing comprehensive assistance in the event of vehicle accidents, the leasing company's Accident and Claims Management service reduces the operating costs associated with motorvehicle repairs. Each vehicle must be comprehensively insured against damage of any kind. If you wish, the leasing company can include comprehensive insurance as part of the lease rental (conditions apply)
In the event of an early termination of your fully maintained operating lease a "Rental Adjustment" is required. This adjustment is simply a re-calculation to reflect the shorterlease term.
If your vehicle reaches its kilometre limit before the term of the contract expires, you may (subject to the leasing companies approval) retain it via an excess kilometre arrangement. This would allow you to keep the vehicle for up to a maximum of 20,000km over the limit that was initially agreed upon.
The leasing companies excess kilometre rates are calculated on the basis of a fixed rate per kilometre and are dependent on the lease kilometre limit and type of vehicle. Should there be a larger variance in kilometres travelled, the leasing company will recommend a lease
As the leasing company is the owner of the vehicle it must be returned upon completion of the lease term in an acceptable condition. This means, that the vehicle must be in good condition inside and out, in sound mechanical order throughout with regard to distance The Repair Authorisation Operating Lease is an off-balance sheet leasing option with the future residual asset risk remaining with leasing company. The product offers competitively priced passenger and light commercial vehicle leases that are tailored to match vehicle usage. Whilst offering many of the benefits of a Fully Maintained Operating Lease, the maintenance and service cost is not included in the normal monthly rental. A Fleet Card is provided, allowing a Repair Authorisation service where all maintenance charges will be billed back to you at the leasing companies preferred customer pricing. MAKE COST EFFECTIVE SAVINGS leasing companies can offer you many ways to minimise the costs associated with your fleet. Like the services offered to larger fleets, leasing companies takes care of the following administration considerations for you.
Key features: GST accounting is also made simpler with all vehicle expenses incorporated in a single monthly tax invoice/statement.
MINIMISE YOUR RISK
Providing comprehensive assistance in the event of vehicle accidents.
Each vehicle must be comprehensively insured against damage of any kind. If you wish, the leasing company can include comprehensive insurance as part of the lease rental (conditions apply).
In the event of an early termination of your operating lease a "Rental Adjustment" is required. This adjustment is simply a re-calculation to reflect the shorter lease term.
If your vehicle reaches its kilometre limit before the term of the contract expires, you may (subject to the leasing companies approval) retain it via an excess kilometre arrangement. This would allow you to keep the vehicle for up to a maximum of 20,000km over the limit that was initially agreed upon.the leasing companies excess kilometre rates are calculated on the basis of a fixed rate per kilometre and are dependent on the lease kilometre limit and type of vehicle. Should there be a larger variance in kilometres travelled, the leasing company will recommend a lease variance.
As the leasing company is the owner of the vehicle it must be returned upon completion of the lease term in an acceptable condition. This means, that the vehicle must be in good condition inside and out, in sound mechanical order throughout with regard to distance travelled and age of the vehicle.
All leasing companies lease packages include the cost of initial registration and subsequent renewals for the period of the lease.The leasing company completes the necessary forms and sends renewal labels to individual drivers, care of your nominated officer. The registration renewal cost (including CTP if applicable) is built into the rental at current cost, therefore any statutory increase on future renewals will be billed back to your monthly statement.
A Novated vehicle lease is an arrangement between you, your employer and the leasing company. It enables you to lease a vehicle of your choice whilst enjoying the tax-effective benefit of financing the vehicle and its operating cost from pre-tax salary. Under this arrangement, you lease a vehicle using a standard lease agreement. A Novation Agreement is entered into between yourself, your employer and the leasing company. The obligation for the payment of lease rentals is transferred (Novated) from you to your employer for the term of the agreement. Therefore, your employer now pays, on your behalf the lease rentals and operating costs directly to the leasing company. You retain ultimate responsibility to make any payments under the lease in the event that you leave your employer or if your employer fails to make payments on your behalf. What type of vehicles can be leased? The leasing companies are happy to provide Novated leasing on any type of passenger motor vehicle (excluding motorcycles and commercial vehicles greater than 1 tonne carrying capacity), either new or used. However, for used vehicles certain criteria must be met ego the age of the car must not be more than four years old at commencement of the lease and not more than seven years old at the end of the lease and the price must be at the current market value. What are the benefits of novating a vehicle?
A Novated vehicle lease is an arrangement between you, your employer and the leasing company. It enables you to lease a vehicle of your choice whilst enjoying the tax-effective benefit of financing the vehicle and its operating cost from pre-tax salary. What are the benefits of novating a vehicle?
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