Operating Lease
An Operating Lease is an off balance sheet Car Leasing option with the future residual asset risk remaining with the vehicle leasing company. The product offers competitively priced passenger and light commercial vehicle leases eliminating any residual risk or maintenance risk and is tailored to match the vehicle usage.
Make savings with an Operating Lease
A car leasing company like Your Car Loan can offer you many ways to minimise the costs associated with your fleet of company cars. Like the services offered to larger fleets, the Car Leasing or vehicle management company takes care of all maintenance and administration for you.
Forecasting is made easy with your Car Lease rental payments fixed for the full term of the Operating Lease. When the Car Lease term expires, you simply return the vehicle to the car leasing company for disposal. Your company has no residual value exposure.
Operating Lease Features
- Operating lease terms range from 24 to 60 months
- No capital outlay is required to fund the purchase of vehicles
- Operating lease repayments are fixed for the term
- Asset not shown on your balance sheet
- Operating lease rentals are usually fully tax deductible (except for luxury vehicles)
- There are no costs or liability associated with vehicle disposal
- You will receive great hands on personalised service from an experienced Operating Leasing consultant
Who should consider an operating lease?
An operating lease is suitable when you use your vehicle wholly or predominantly for business purposes. 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.
What are the tax implications of an operating lease?
GST is claimable on the monthly Operating Lease payments, these can be claimed on you BAS.
Operating lease rentals are fully tax deductible up to the ATO depreciation limit of $57,180.
Need More Information?
If you would like more information on any business Car Lease, one of our Car Leasing consultants can prepare you a tailored Car Lease package.
Call the team at Your Car Loan now on 1300 220 880 or complete the online application form and we'll get back to you shortly.
