Automotive Lease Packaging provides a flexible rental solution suited particularly for companies, schools, government and non-government organisations.

An Operating Lease is a type of lease in which the company or organisation (the leasing entity must have an ABN) leases the vehicle whilst the financier retains ownership. Under an Operating Lease there is no predetermined "residual" value to pay as ownership does not automatically pass to the customer at the end of the term.

The leasing company assumes the residual value risk on the vehicle, not the client. Part of this is done by careful management of the number of kilometers the vehicle is expected to travel. If the vehicle travels outside of the expected number of kilometers, the residual risk may change. Payments may be adjusted mid stream to account for any significant changes to the kilometers the vehicle travels.

Operating Leases are not listed on the company's balance sheet. Being "off balance sheet" is considered a major advantage over finance leases, particularly for public companies or organisations, which may have borrowing restrictions, limits on their debt to equity ratios or capital expenditure.

Lease payments for the equipment are generally tax deductible as long as the company demonstrates that the equipment was used for business purposes and the GST on the rentals would also be claimable by the lessee.

Under the operating lease/rental option, the customer has more flexibility at the end of the term, as they may:

• hand back the equipment and upgrade
• continue to rent the equipment
• offer to purchase the equipment at fair market value

Along with the lease payment, the running costs for the vehicle can be bundled together by our in house fleet management team. We manage the lease payments, service, tyres, fuel, insurance and registration. We will issue clients with fuel cards of their choice; allowing you to keep all of your vehicle costs under control with one monthly payment.

Automotive Lease Packaging helps clients to keep track of kilometers travelled to ensure that the leasing company and the clients are up to date and that any changes to be made are kept to a minimum. will work with clients on any FBT issues that may arise out of the use of the vehicles by employees for private use.

PLease contact one of our business managers on 1300 309 343to discuss your options in details.

Finance Products

Services

Real Savings