A lease provides a method of financing a car.
How a car lease works
With a lease, ownership of the vehicle rests with the leasing company or financier. Funds are credited directly to the sellers bank account, and this product is available for private sale vehicles in addition to purchases made from a dealership. Lease payments occur at fixed intervals, and usually are direct debited from your bank account on a pre-determined date. You have the choice of repaying weekly, fortnightly or monthly.
How to apply for a business car lease
A lease provides a method to access finance to purchase both new and used vehicles, and can defer payment of the whole amount to the future.
Tax benefits and cash management are reasons why many individuals who have sufficient surplus cash to fund a purchase still opt for a lease
Advantages of a Lease
- Up to and beyond 100% of the purchase price (and even more) can be financed.
- Regular structured repayments on a pre-determined date
- Ability to keep the asset off your balance sheet
- Ability to tailor the length of the finance term to suit you.
Related Options for leasing a car
A chattel mortgage operates in a similar way. A chattel mortgage is available to customers who will use the vehicle in a business capacity for at least 50% of the vehicles use. Click here to find out more.