Asset Finance in Australia
With an extensive panel of lenders, Motorplan have the connections and expertise to find the right asset finance solution for your business. While we specialise in vehicle financing we also offer asset finance solutions for;
- Farming machinery
- Commercial equipment such as bobcats and excavators
With a finance lease, the financier owns the goods and you, the customer, pays a fixed monthly rental for the term of the lease.
Once the lease has finished, you can either pay the residual value (as set at the commencement of the lease) and take ownership of the vehicle, re-finance the residual and continue the lease or sell the vehicle and upgrade.
A finance lease will enable you have immediate access to the equipment you need without having to come up with the cash.
Benefits of a finance lease
- Fixed interest rate for the lifetime of your lease.
- Fixed monthly rentals for the lifetime of your lease.
- Fully Maintained Lease options are available.
- No deposit funding
- On balance sheet accounting – ie. asset
- Lessor can obtain ownership at the end of the term.
For more information on our finance lease product please click here.
Commercial Hire Purchase
With a hire purchase, the financier purchases the asset and hires it back to you for a fixed monthly payment. When you make your final payment (including any balloon payment options) ownership of the asset is turned over to you.
There is the option to include a balloon payment in your hire purchase agreement. This balloon payment will then be payable to the financier at the end of your hire purchase lease. Including a balloon payment in your agreement means that the lease repayments will be less each month.
Benefits of a Hire Purchase;
- Interest rates and repayments are fixed for the term of the agreement
- Option for a balloon payment to lower monthly leasing costs.
- If you are registered for GST you can claim the GST that is included in the vehicle purchase price at the time of sale. (GST is not charged on the monthly hire purchase payment)
- If the asset is being used for business purposes you can claim a tax deduction on the depreciation of the asset as well as the interest component of the loan repayments.
To read more about our Hire Purchase product please click here.
Unlike a finance lease or hire purchase arrangement, under a Chattel Mortgage you the customer take ownership of the asset immediately and the financier secures the loan by taking a mortgage over the goods or chattel.
Once the term of your chattel mortgage is complete, the mortgage is lifted.
There is the option to include a balloon payment in your chattel mortgage. This balloon payment will then be payable to the financier upon conclusion of the chattel mortgage. Including a balloon payment included in your chattel mortgage means that the repayments will be less each month.
Benefits of a Chattel Mortgage
- Vehicles used for business purposes offer a tax deduction.
- The interest rate and the repayments are fixed for the entire term of the Chattel Mortgage.
- Option of a balloon payment to lower monthly repayments.
- If you are registered for GST you can claim the GST that is included in the vehicle purchase price at the time of sale (GST is not charged on the monthly Chattel Mortgage payment).
To find out more about our Chattel Mortgage product please click here.
If you are looking to free up capital and want an off balance sheet option then please take a look at our operating lease options.