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Your Partner in Performance with More Than 30 Years of Leasing Experience
Your Partner in Performance with More Than 30 Years of Leasing Experience
Finance Leasing for Business Vehicles

Finance Leasing for Business Vehicles

What is a finance lease?

A finance lease lets your business use a vehicle for a set term in return for fixed monthly payments. At the end of the term there is a residual payment, and you can pay it and own the vehicle, refinance it, or trade it in. You look after the vehicle’s running costs yourself.

Who a finance lease suits

  • Businesses that want to own the vehicle in the end
  • Businesses that prefer to manage their own servicing and running costs
  • Vehicles that will travel a lot or be modified for work

Finance lease, fully maintained lease or novated lease?

  • Finance lease: you pay for the vehicle over the term, look after running costs and can own it at the end.
  • Fully maintained lease: one fixed payment covers the vehicle and running costs, and you hand it back at the end.
  • Novated lease: an employee leases a car through their salary, with payments mostly from pre-tax income.

Not sure which is right for you? Our team will explain each option in plain English and give you quotes to compare. You can also try our repayment calculator.

Frequently asked questions

What is a residual on a finance lease?

The residual is the amount left to pay at the end of the lease. The ATO sets minimum residuals based on the length of the lease. A higher residual means lower monthly payments.

Can I claim GST on a finance lease?

Businesses registered for GST can usually claim GST credits on lease payments for the business-use portion. Check with your accountant.

Can I pay out a finance lease early?

Usually yes, although there may be costs to do so. We explain this before you sign.

This is general information only and does not take your circumstances into account. Tax rules can change, so please speak to your accountant or tax adviser before making a decision.

Talk to PAR Leasing

Call us on (03) 8387 1200, email davidb@parleasing.com.au or send us a message for a free, no-obligation quote. PAR Leasing is the fleet division of Alan Mance Motors, based at 237-241 Geelong Road, Footscray, and works with organisations across Victoria and the east coast of Australia.