Operating Lease
Yes Loans we can give you access to the best operating lease Loans option in Australia. We can also offer all clients the lowest rates and we guarantee to beat any written quote from a car dealer, bank or Loans broker.
What is an operating lease?
An operating lease is an off balance sheet option to lease a motor vehicle. The Loans provider purchases the motor vehicle and rents it to you for a monthly rental payment. At the end of the operating lease term, the motor vehicle is simply returned to the Loans provider in good condition and your Loans obligation ends.
How does a operating lease work?
An operating lease is simple, choose a motor vehicle, decide on the term (normally 3 to 5 years), work out how many km's you will travel per year. Pay a monthly lease payment and at the end of the term hand the motor vehicle back to the Loans provider.
Operating lease features
- Operating lease terms range from 2 to 5 years
- The fixed operating lease rentals are on a single monthly invoice allowing easy and accurate budgeting
- The operating lease monthly repayment maybe 100% tax deductible
- No capital outlay is required to fund the purchase of vehicles
- The car is funded externally and not shown on the balance sheet
- There are no costs or liability associated with vehicle disposal
Operating lease taxation implications
If the amount to be Loansd is below the ATO depreciation limit, $57,180, you may claim the full lease rental as a tax deduction. Above the depreciation limit, it's similar to a commercial hire purchase agreement where the interest and depreciation up to the motor vehicle's value can be claimed. GST will be charged on your monthly payments, however it can be claimed back on your Business Activity Statement (BAS) over the term of the operating lease contract.
The monthly repayment or balloon amount is subject to GST.