Operating Lease

 When you need to use the vehicle while preserving your capital with no residual value risk, avoid costs of depreciation and disposal.

QUICK OVERVIEW

• Only security is the asset 
• 100% finance may be available 
• Lease payments are 100% tax deducible 
• You are NOT responsible for the residual value 

BENEFITS

• No set up costs or other hidden costs, you just pay the regular rental 
• You can replace vehicles regularly without having to worry about disposing of the existing vehicles 
• You are protected from inflation and resale risk 
• Maintenance  & annual registration is included in the lease payment 
• The cost of the asset is spread over easy monthly rentals 
• No need to administer accounting asset depreciation or interest 
• Renting through Operating leases improves working capital, return on assets and gearing ratios 

FEATURES

• Pre-determined operating cost enables smooth cash-flow and accurate budgeting 
• Rental payments are fully tax deductible 
• You know exactly what your regular payments will be for the length of the term 
• Term from 12 to 45 months for cars and 60 months for light commercials 
• Payment frequencies may be monthly, quarterly or seasonal 
• Rental payments are fully tax deductible     

INDICATIVE TAXATION TREATMENT*

Lease payments are 100% tax deducible
GST is claimed each payment
Off Balance sheet (Statement of Financial Position)           

*Lease Direct Ltd recommends you seek your own independent legal and taxation advice before completing documentation