Novated Lease

What?

A Novated Lease allows a company to lease a vehicle on behalf of an employee. The specific costs covered by the lease, like fuel and maintenance, are worked out between the employee and the employer and are paid directly out of the employee's pre-tax salary.

Why?

A Novated Lease combines all the expenses associated with running a vehicle into one convenient document, updated in real time. This allows both the driver and the leaseholder to keep up-to-the-minute tabs on all associated costs. SupaNova manages all the payments on your behalf so you're never out of pocket! A Novated Lease is ideal for a personal-use vehicle.

Operating Lease

What?

An Operating Lease is a short-term lease on a vehicle for a fixed monthly amount. An Operating Lease means that the party providing the vehicle maintains ownership of the vehicle after the term of the lease expires. The vehicle provider, or lessor, assumes the risk for the vehicle which means an insurance premium is incorporated into the monthly payment.

Why?

Operating Leases are a perfect low-risk option for short-term vehicle hire.

Flexilease

What?

A Flexilease is a standard vehicle leasing option that occurs over an agreed period of time or an agreed maximum kilometre limit, or both. A Flexilease includes all vehicle operating costs, excluding fuel, in one fixed monthly fee. Simply return the vehicle when you're done!

Why?A Flexilease is an ideal option for small to medium sized businesses that want to use, but not own the vehicle.

Commercial Hire Purchase

What?

A Commercial Hire-Purchase, or CHP, means we buy the vehicle on behalf of the lessee, then hire it to the lessee over an agreed amount of time. At the end of the hire period, the lessee will own the vehicle and have the option of selling, refinancing, or paying off and keeping the vehicle for their own use. Initial deposits can be paid to reduce the size of the loan and the repayments can be tailored to include or forego running costs depending on the requirements of the lessee.

Why?

A Commercial Hire Purchase is a cost-effective way to match vehicle repayments to the size of a company's cash flow. CHPs have a fixed interest rate that remains in place for the duration of the loan. A CHP arrangement is tax-deductable if the vehicle is used for business purposes.

Chattel Mortgage

What?

A Chattel Mortgage is similar to a Commercial Hire Purchase. One important difference between a CHP and Chattel Mortgage is that the lessee assumes ownership of the vehicle straight away, not at the end of the hire period. Like a CHP, a Chattel Mortgage is also a loan involving regular repayments made to the financer.

Why?

A Chattel Mortgage is suited to businesses that deal primarily in cash. A Chattel Mortgage gives you instant ownership of the vehicle and allows a GST registered lessee to claim the GST as an input on their next Business Activity Statement (link). The monthly repayments on a chattel lease are generally low interest and exempt from the GST.

Finance Lease/Vehicle Purchasing

What?

A Finance Lease is a "full-payment" lease in which the lessee/purchaser, assumes all the costs and risks of vehicle maintenance but is granted full ownership of the vehicle from the beginning of the lease term.

Why?

A Finance Lease is a way for businesses or sole-traders to purchase vehicles directly from a trusted provider, foregoing any potential costs for additional services that may be charged by the financer.