A new business car can also be purchased through a novated lease to cream more tax benefits from salary packaging – for you or your employees. The lender is the one who still retains title over your vehicle. Repayments are made as a deduction from your or the workers before tax salary. Car finance in Melbourne If you have a business, then this type of car buyer loan can offer absolute advantages when it comes to offering employees vehicle and preserves on tax benefits.
Chattel Mortgage
Another option for new business vehicle finance is chattel mortgage car finance. A car mortgage Is one where a lender lends you money this is secured in opposition to the automobile through a loan. Interest repayments and the fees on a company vehicle are tax-deductible against business income when using chattel mortgage car loans. This can be beneficial for businesses wishing to buy the car outright and seek tax benefits, which chattel mortgages offer.
But bear in mind as with all secured loan the lender does have a right to repossession of a vehicle under chattel mortgage should you default on your normal loan repayments. The mortgage is then held in place by the lender until you pay off your loan.
Hire Purchase
When you take out a hire purchase agreement for a business car, you are essentially renting it from the lender over an agreed term. As soon as you schedule your last payment, the vehicle officially belongs to your business. This may well work for businesses that wish to own the vehicle in time however do not have the money available there and then.
