Car Lease Melbourne

Yes – there are novated leasing companies in Australia who can offer leases for used vehicles, provided they satisfy the eligibility criteria set in place by the company (such as age and value). However, this is less common with commercial leases. 

Yes – if you want to upgrade vehicles more frequently and completely offload the risks of ownership and disposal, and if you’d benefit from bundling running costs and admin into the finance package, an operating lease is probably your ideal solution. As mentioned, finance leases generally don’t include operating costs and administration, although the term durations are similar and even though there’s an obligation to pay the residual down, you can still upgrade your car at that point.

No – the outstanding financial benefits of using a car lease are connected with GST and tax. While you can’t claim depreciation, you can save tens of thousands of dollars over the course of a car lease term. Depreciation can be claimed if you own the vehicle, such as under a chattel mortgage agreement.

It can be challenging to get a competitive car lease if you or your business have bad credit. At best, that’s going to mean high car lease interest rates, while at worst, it could result in a rejection. However, Savvy works with financiers who can offer competitive bad credit car finance. That’s because with secured loans, the lender uses your vehicle as collateral against your borrowing until you finish paying the loan back – and that keeps the risk and interest rates lower. As a result, you may end up having more options for secured loans than leases, but it's important to compare your options thoroughly.

A residual value, residual payment or balloon payment is a lump sum attached to the end of a car lease. It works in a similar way to a deposit, but it's paid at the conclusion of your agreement, meaning your repayments will be lower but the interest charged overall will be higher.

With car leases, residuals are set according to ATO rules and based on the term of the lease. That’s because it’s there to account for the vehicle’s depreciation during the term. It’s why lease payments tend to be lower than with a straight car loan – because you only pay down the value of the car for the period you use it. The residual covers the rest from the lessor’s point of view.

If you’re waiting on your latest tax return or don't have all the financials you need, Savvy’s consultants will likely direct you toward a low doc car finance solution. These are based on the chattel mortgage model, meaning they still come with tax advantages.

Apart from the obvious advantage of canvasing a broader selection of lenders and products, Savvy’s expert car finance consultants can guide you through the car finance process, help with documentation and qualification requirements, and generally navigate applications more quickly. That means you jump fewer hoops and end up with more time to do what really matters– which is to grow your business.