Not everyone’s financial needs are the same, and it is, therefore, beneficial to have a few ways to acquire a car. Leasing is one channel, and, within that, there are three forms of leasing. As you would expect, each type of car leasing option available is structured in a slightly different manner to suit the financial needs of the different Gold Coast car buyers.
The basic theory of a car lease is that the Gold Coast finance lender retains ownership of the selected vehicle, and the car buyer is placed in the role of a rentee. The rental for the car is paid monthly to the lessor.
The following information will give you an overview of the options.
Novated Lease
Salaried employees frequently choose this car lease option for the purchase of their selected new or used vehicle. In this setup, the financial structure allows for monthly payments to be deducted from pre-tax salaries. By doing this, the money that would normally be allocated to tax is used to pay the lease. Your taxable income amount comes down, which is a great benefit.
The parties to the contract are the financier, the employee and the employer. Your employer will not baulk at this setup as it does not create a significant admin impact. The contract can also include all vehicle maintenance, service, and even tyres for the life of the contract. Vehicle Road Tax is also included.
Contact ZEP Finance for a novated lease.
Operating Lease
The second option is called an operating lease. This has a similar structure to a finance lease (see below), but you do not take on the responsibility of resolving the residual value at the end of the contract. What happens is, you return the vehicle to the lender/financier at the end of the contract lifespan. As residual values often catch people unawares and are often large amounts, this option may be attractive to you as you do not have to worry about it.
Contact ZEP Finance for an operating lease.
Finance Lease
The third option is the finance lease. This type of car leasing Gold Coast is most commonly used for business acquisitions of vehicles. The initial purchase is actioned by the financier. You, the borrower, then have a rental agreement with the financier which is serviced with monthly installments. In most cases, the repayments are structured as a fixed monthly amount, but there can be options where the repayments fluctuate with prevailing interest rates. There is usually a residual amount agreed upon, which becomes payable at the end of the contract period.
Contact ZEP Finance for a finance lease.
For thorough, professional advice of car leases on the Gold Coast call us today Ph.: 1300 557 027. Our many years of experience and an extensive network of suppliers gives you the highest quality advice. We help you get the best deals on the Gold Coast, and in Ballina & Byron Bay.
