Consumer Vehicle / Equipment Finance:
Under a Chattle Mortgage the lender advances funds for you to purchase a vehicle or piece of machinery/equipment. You or your business takes ownership at the time of purchase and the lender takes the item as security by registering a fixed and floating charge with ASIC.
By you having ownership over the item it allows you to claim all the GST paid, at the end of financial year.
A Lease is a commercial finance product which enables you to have the use of the financed item and the benefits of ownership, while the lender retains actual ownership of the vehicle.
A lease requires a balloon payment at the end of the loan term, the borrower will then pay a fixed monthly lease rental for the term of the loan and have the choice at the end of the term to either repay the balloon and take ownership of the item, refinance the balloon amount or the lender will take possession over the vehicle and take on the ballon debt.
GST is applied on the rental payments and balloon, which you can claim most (or all) at the end of each financial year.
Changes to the GST Act have recently been made by the Government and will go live on the 1st July 2012.
These changes will impact Hire Purchase products.
For details regrding Hire Purchases, please contact MIA Financial Services on (02) 6964 8567.
When a vehicle or equipment is being obtained for personal use, or you do not hold an A.B.N, a Consumer Loan can be obtained.
A Consumer Credit Loan, sometimes known as a Car Loan, gives you the benefit of a lower interest rate then a Secured Personal Loan. Terms can range for 1-7 years and usually the newer the product the lower we can get the interest rate.
A Novated Lease is a way of salary packaging a vehicle and it's operating costs. To do so an employee leases the vehicle and the employer agrees to take on the employee's obligations under the lease. The employer then pays the monthly lease rentals and operating expenses from the employee's pre-tax income.
There are also non-maintained Novated Lease options, where only the lease payments are paid out of the employee's pre-tax income.