>> operating lease
An operating lease allows you to lease a motor vehicle without you taking
the risks associated with owning the motor vehicle or being required to put
together any funds to make an outright purchase.
The lender retains ownership of the vehicle during the lease contract period. The borrower has the full use of the vehicle in return for a fixed monthly rental payments worked out in line with your use of the motor vehicle. At the end of the operating lease term, providing the car is in a good condition, you simply hand the vehicle back and the your finance obligation ends.
An operating lease is simple, select a motor vehicle, decide on the term and work out how many km's you will travel annually. Pay a monthly lease payment and at the end of the term hand the motor vehicle back to the finance provider.
This type of finance does not require have residuals and balloon payments. Simply return the motor vehicle back to the lender at the end of the lease term.
Why Consider An Operating Lease?
An operating lease is best suited to wholly or predominantly business use. This means that the vehicle is used for business for more than 50% of the time. It also a great option if you would like no residual risk at lease end and will travel plenty of km's per year.
GST is claimable on the monthly finance lease payments, you can claim these
on your BAS. Car lease rentals are fully Tax Deductible to the ATO
depreciation limit of $57,123.