Byron Bay, located just south of the Queensland border, is a famous tourist destination for travellers from all over Australia and worldwide because of its laid-back atmosphere, alternative communities and breathtaking natural beauty. It offers one of the most highly sought after lifestyles in the world.
A town with such a great reputation becomes a brand name in itself. Being a business based in Byron Bay offers a great promotional advantage for small businesses. With a melting pot of creative minds and a booming tourism industry, it is the perfect location for small businesses to flourish.
Instead of purchasing business vehicles, car leasing for Byron Bay-based businesses is recommended because of the cost savings, tax benefits and the convenience of acquiring a new vehicle or fleet every few years.
Below we explore some of the advantages of car leasing for businesses:
Fixed Monthly Fees
As a business owner, the last thing you want is for your business to become reliant on bank loans and overdrafts for company cars.
Business car leasing eliminates the need to raise upfront capital to purchase company vehicles since you only pay a set monthly fee, which is predictable and can be budgeted. This frees up sums of money that can be invested into your business.
Finally, at the end of the contract period, the vehicle is collected and sold at no extra hassle to you, saving you the headache of selling.
Depreciation Taken Into Account
It is challenging enough to come up with the considerable amount of money required to purchase a brand new vehicle. To make matters worse, the vehicle’s value will decrease over time, which means that when the time comes to sell it, you can never recoup its original value.
Monthly payments on a business car lease take into account the fact that the vehicle will depreciate over the duration of the contract. This is why leasing is often considered less expensive than purchasing.
Once the contract expires, you may simply walk away from it or order a new lease vehicle without having to worry about selling or recouping your money. This eliminates the possibility of incurring a loss of capital.
Regularly Upgraded Vehicles
Leased vehicles allow you to upgrade to a new model every few years without negotiating a trade-in. This enables you to regularly upgrade your fleet, which benefits your brand’s identity and image and ensures your employees’ safety. Your company and employees will benefit from the latest models’ dependability, durability and outstanding fuel efficiency.
Tax Reductions For Business Owners And Employees
When taking out a car lease, the lender rents you the vehicle for a certain length of time and at a predetermined price. The monthly lease payments will be fully tax-deductible if the vehicle is used only for business operations and not as a personal or luxury vehicle. Bear in mind, however, that depreciation cannot be claimed.
Employers can use a novated lease to finance new or used vehicles for their employees. Before salary payments, the payable amount is deducted ‒ reducing taxable income, which results in a decrease in PAYG income tax. Repayments on conventional car loans are made after tax is deducted. However, with a novated lease, the business owner pays the financier directly, allowing employees to reduce their taxable income while maintaining a higher net salary.
Are you in the market for a business vehicle? Consider Leasing! At ZEP Finance, we have access to a large panel of business lenders specialising in vehicle finance. Because of this, we can offer tailored solutions to suit your specific needs. We will find you options with competitive and affordable monthly repayments. For all your car leasing in Byron Bay, contact us today.
