Should an Australian business buy or lease a car?
Buying a car with cash or a vehicle loan can create cash flow and taxation benefits for any business operated in Australia. The federal government recently enhanced the investment allowances and taxation concessions available to assist small business operators to buy new equipment, such as cars and trucks, in an attempt to assist in expanding their competitiveness.
Now that the government has shown a willingness to help people to buy business vehicles, individuals or managers should investigate the various ways that they can acquire a business vehicle while maximising the use of tax laws.
Many business people get car leasing advice from accountants, bankers and financiers who keep up to date with what financial products are available to assist business operators with their motoring needs. Naturally, the average manager, tradie, independent contractor and small business entrepreneur can seldom find the time to keep up with knowing where to look for competitive rates and fair leasing terms.
One mistake that it is vital not to make when purchasing a car, is to overlook the benefits of leasing a car, bus or truck for business use. Leasing a car conserves cash for use in the business and at the same time, creates a car acquisition tax deduction. Buying a car outright may assist some but leasing can create major tax deductions and concessions such as writing off the asset over time with
depreciation.
Ask around and get the best advice as it is impossible for small business operators and directors of corporations to know as much about how to buy a car for business than a car leasing expert.
One key point is that it is important to investigate whether or not it is better to buy a car or lease one before agreeing to use car or truck dealer finance. Consider getting car leasing advice online to see if there are better purchase or leasing options. Some businesses do not want to spend capital on a car and choose to keep their cash within a business buy arranging a car lease to give them a competitive edge,.
Consider getting advice online from a vehicle lease broker who can call on a large panel of lenders and importantly, who has earned the trust of a lot of leasing businesses.
A small car loan broker or vehicle dealer can often only call on one source. Look for a broker who is not tied to one finance source and one who works with reputable car finances sources and keeps up to date with their daily specials, new products, lower interest, best terms and conditions such as:-
1. Balloon payout amount
2. Option to buy at end of lease
3. Insurance requirements
4. Maintenance contracts
5. Upfront costs
6. Structured payments
7. Best use of GST deductions
8. Equity and depreciation
A good trusted broker can assist corporations, business people and individuals for many years with vehicle leasing products that are structured for their unique circumstances.
Further reading
Top 5 Mistakes to Avoid When Leasing a Car
