For a not-for-profit, every dollar spent on vehicles is a dollar not spent on services. Yet many organisations still buy their vehicles outright, tying up funds and taking on the risk of what those vehicles will be worth when it is time to replace them. A fully maintained guaranteed buyback lease solves both problems.
The problem with buying vehicles
- A large upfront cost that often has to come from reserves or grants.
- Unpredictable repair and servicing bills.
- Staff time spent organising servicing, registration and sales.
- Resale risk: used vehicle prices rise and fall, and you only find out what a vehicle is worth when you sell it.
How a guaranteed buyback lease works
Your organisation chooses its vehicles and agrees a term and kilometre allowance. You pay one fixed monthly amount, which covers the vehicle and its running costs. The vehicle’s value at the end of the term is guaranteed at the start, so when the lease ends you simply hand it back.
Why it suits not-for-profits
- Easy budgeting: a fixed monthly cost per vehicle fits neatly into annual budgets and grant applications.
- Funds stay with your services: no large capital outlay.
- No resale risk: the buyback value is locked in.
- Safer vehicles: regular replacement keeps staff and clients in modern vehicles.
Who uses it
PAR Leasing provides fully maintained leases to organisations including CoHealth, Greyhound Racing Victoria and Harness Racing Victoria, as well as schools, NDIS providers and community health services. Find out more about guaranteed buyback leasing.
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.