Finance Lease for Trucks

With a finance lease the lender purchases the equipment for you and, in return, you pay us a series of rental payments, Finance Lease for Trucks which are fully tax deductible (if the equipment is used solely for earning assessable income). At the end of the term, the lender can take possession of the equipment and sell it. In a finance lease, usually we’ll allow you to purchase the equipment for the residual value of the goods.

The lender (the lessor) purchases the equipment or vehicle required by you (the lessee) for the finance lease and is therefore, the owner of the good(s). The lender then leases the goods to you under a Finance Lease Agreement, which sets out the residual value of the goods, the term of the finance lease in months, the monthly rental and the depreciation rate.

When the finance lease expires, there are some alternatives available to you:

Refinance the residual value.
Payout the finance lease contract.
Make an offer to purchase the equipment, which may be accepted by us.

Who can benefit from a finance lease?

Any firm, partnership, company and professional or business people who want to acquire plant-equipment, motor vehicles, or similar goods used in the production of assessable income can benefit from a finance lease.

Finance lease key features

Can obtain equipment without capital outlay.
Payments can be made on a monthly, quarterly, half yearly or irregular basis.
The terms of the finance lease are flexible, subject to our and ATO guidelines (maximum term 60 months).
The residual value of the leased goods is established in accordance with a schedule issued by the Commissioner of Taxation.
Lease rentals are usually tax-deductible, if the leased goods are used to produce assessable income.

Finance lease benefits

With no initial outlay required, you can use your working capital for other purposes.
You have the option to select the length of the finance lease term and the timing of repayments to suit your cash flow (maximum term 60 months).
You can negotiate rentals and residual values within an approved range, allowing more flexibility in budgeting.
You can utilise this product to finance their outlay of recently purchased equipment.
With a finance lease you may be able to make use of taxation benefits.

Finance lease interest rates

Interest rate is fixed throughout the term of the loan.

Finance lease fees and charges

An establishment fee is payable and includes GST.
The cash booklet fee is payable and includes GST.
Fees cannot be financed and must be paid by cheque at the time of signing the documents.
Monthly rentals payments may be subject to GST.
Pre-determination fees may apply
Repayment schedules