Luxury car leases are the financing choice many Australians use when buying a prestige car. Car leases are a fixed-rate way for some employees, companies, and self-employed individuals to combine tax benefits with driving a luxury car. Although you get the option to buy the vehicle at the end of a luxury car lease, you can claim some or all of the regular payments as a business expense during the term – depending on the type of lease. Unlike with a personal car loan where only the interest portion is tax deductible, a lease allows you to deduct the entire repayment usually. Luxury car leases generally run between two and five years. When the term ends, you can pay the residual amount and own the car, refinance the residual and keep driving, or sell the vehicle and start another luxury car lease – making this form of finance a great option if you like to drive the latest prestige models.
Luxury vehicle leases differ from car loans because you don’t own the vehicle during the finance term. Depending on several factors – like your tax and employment status, cash flow, and how often you plan to upgrade your car, there are a few different luxury vehicle lease options to choose from. There are prestige car lease options out there whether you’re employed full-time, a sole trader, and even if you run a small, medium, or larger sized business. Savvy helps Australian car buyers find their ideal form of finance because we deal with many of Australia’s top niche and wholesale car lease lenders – offering a broad range of car finance products, and we don’t have ties with any specific providers. That means we can make market-informed, independent decisions about your best way forward, based solely on your circumstances, and then quickly connect you with the ideal lender.