A finance car lease is a two-party agreement between the lessee (individual or business) and the finance provider, designed primarily for business use. In contrast, a novated lease is a three-party agreement between an employee, their employer, and the finance provider, offering tax savings and flexibility for personal and work vehicle use.
About Finance Car Leasing
A finance car lease allows you to access a vehicle without the need for full ownership, making it an ideal option for businesses or individuals financing a vehicle primarily for business use. Through a two-party agreement between the lessee (you or your business) and the finance provider, the financier purchases the vehicle on your behalf. In return, you lease it through monthly payments over an agreed term.
Finance car leases are particularly beneficial for:
- Business owners looking to preserve capital and manage cash flow.
- Individuals financing a vehicle used predominantly for business purposes, with
potential tax deductions.
At the end of the lease, you’ll have several flexible options:
- Purchase the vehicle by paying the residual value.
- Extend the lease term.
- Return or trade in the vehicle.
Additionally, you can reduce monthly payments by applying a residual value to the lease, and because the financier may claim back GST on the vehicle's purchase price, the lease is based on the GST-exclusive cost, further lowering repayments
How Is a Finance Car Lease Different from a Novated Lease?
While both options allow you to access a vehicle without full ownership, a finance car lease is primarily suited for businesses or individuals financing a vehicle for business purposes. It involves a two-party agreement between the lessee (you or your business) and the finance
provider.
In contrast, a novated lease is tailored for employees and involves a three-party agreement between the employee, their employer, and the finance provider. This arrangement allows lease payments and running costs to be deducted from pre-tax income, providing tax savings and flexibility for personal and work use.
If you’re an employee considering a vehicle lease, a novated lease may offer greater benefits, including bundled running costs and reduced taxable income. Learn more about Novated Lease
Not Sure If a Finance Car Lease Is Right for You?
If you’re an employee looking to lease a vehicle, you might benefit more from a novated lease. With tax-saving salary packaging and the ability to bundle running costs, a novated lease maybe the smarter choice.
For businesses or individuals focused on financing a vehicle primarily for business use, a finance car lease offers practical solutions with potential tax deductions.
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We can assist with a variety leasing options
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How it all works
Understanding Your Needs
We don’t treat you like just another number. Our brokers take the time to understand your specific needs to find the best finance options from our panel of over 40 lenders.
Apply for the Right Deal
Once you are happy with an option that fits for you, your broker will take you through the application. Approvals can occur within 24 to 48 hours.
Get the Keys or Funds in Your Hands
If approved, we guide you through the settlement process to finalise the paperwork and payment. Once everything is settled, you’re ready to pick up your new vehicle or the funds you need to help you towards your new adventure.
Providing Ongoing Support
Stratton Finance supports you throughout the life of your loan, ensuring you always have the assistance you need.
Frequently Asked Questions About Finance Car Lease
Finance car leases are ideal for businesses and individuals who need a vehicle primarily for business purposes. It’s particularly beneficial for managing cash flow, preserving capital, and accessing potential tax deductions.