Some finance options can be difficult to understand when it comes to purchasing your next car. So, at Corporate Car Brokers, we have broken down each option, making it easy to decide which finance option is best for you. Finance Leases have always been a popular way to pay off a car and is one of the most common finance options offered by dealerships and car brokers. One reason for this may be due to the fact it is one of the most straightforward and simple finance options for both new and used vehicles.
What is a Finance Lease?
In a finance lease, the new or used car is purchased by a business or lessor who pays the monthly instalments or rental payments that ultimately go towards the car. When the term of the lease is finished, the business pays out the residual value. At this time, the lessee can also choose to go ahead and purchase the car, providing them with 100% ownership at the end of the lease.
Benefits of a Finance Lease
Finance leases are especially beneficial for corporate businesses. There are many benefits of a finance lease including; possible low deposit terms or no deposit terms. Payments made by a finance lease are also sometimes tax deductible which is a major appeal for many businesses and lessors. However, the tax-deductible benefits will depend on a variety of factors, mainly the tax status of the business undertaking the lease. At the end of the finance lease, the business will have the choice to purchase the car which is also a benefit for the business.
So, if you think a finance lease is most suitable for your next car purchase, contact Corporate Car Brokers on 1300 539 010 to find out more or visit https://www.corporatecarbrokers.com.au/ for more information!