Do you own a business but are not sure what are the best options when financing vehicles for your business? Well, Aussie Car Loans is hosting the battle of the century for you - lease vs hire purchase.

Lets size up the lease...

In a Finance Lease, the financier keeps the title and loans the asset to a borrower for an agreed term and rental amount. There is 100% funding with no equity allowed, so you don’t need a deposit. Your repayments are usually tax deductible in full. And an agreed residual value will be set out at the start of the term so if at the end, you would like to purchase the car, this can usually be arranged, however, under a lease there is no guarantee of this.

So the leases & novated leases are looking strong and have always been popular, let’s check out the current contender - Hire Purchases.

A Hire Purchase, or Offer To Hire, is an agreement whereby during the hire period, the financier owns the asset and the hirer pays regular installments.

You might be thinking with this option you’ve picked the wrong team because it sounds just like a lease. However, the key point of difference is that, at the end of the hire period, the vehicle is yours to keep. Here’s all the nitty gritty of a Hire Purchase for those who love the fine details.

However, there’s been an interesting development in this battle for the best option for businesses seeking vehicle finance and that is the advent of chattel mortgages which are replacing hire purchases, so let’s check out this new contender.

A chattel mortgage is a loan agreement where funds are borrowed to purchase a vehicle and a charge is taken over the goods that are financed. The equipment is owned by the borrower straight away. A chattel mortgage can be 100% funded or equity such as a deposit or trade can be contributed. Balloon payments can be included. Tax deduction is generally interest on the facility and depreciation. And if your business is registered for GST, the GST on the purchase price can usually be claimed.

So that’s all the info on our new contender, the chattel mortgage. And judging by the popularity and feedback, it’s shaping up to be the one to beat.

For all the info and guidance on the best option for your business and circumstances, talk to Aussie Car Loans today.


Find out everything you need to know about Hire Purchase agreements including how they differ to leases and if that's the best option for you.

You will also learn about Chattel Mortgages, an emerging commercial finance product that is set to replace hire purchases in popularity.

Ready to apply for business car finance? Please submit an application form online.

To speak to someone about your commercial finance options, contact Aussie Car Loans on 1300 769 999. or send us a message.


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