• Buy or Lease a Car

  • Lease vs Buy

    Many businesses debate whether to lease or buy their cars.

    Where financial stability and minimising exposure to loss is important, leasing is a very popular business strategy.

    Choose leasing and you can remove asset ownership and depreciation risk; ensure known, fixed operating costs; provide cash flow certainty around a significant business expense; and boost your balance sheets.

  • Tax advantages
    Rental price is tax deductible on operating leases where the cars are used to generate taxable income

    No extra security requirements
    No extra loan covenants or guarantees

    Upgrade assets more regularly
    Reduced running costs, improved driver morale and corporate image as well as improved safety and technology.

    Volume discount benefits
    Leverage LeasePlan’s purchasing power, not just on vehicle procurement but on all running costs as well.

    Total package
    Include all essential fleet management services, consultancy and advice from fleet management experts.

    Know the benefits

    Known, fixed costs
    Remove the hassle of unexpected cost spikes during servicing and other ad-hoc vehicle expenditure with a flat monthly lease rate.

    Off balance sheet
    As LeasePlan is the owner of the vehicle, you can remove the vehicle asset from your balance sheet to streamline reporting processes

    Conserve capital
    No capital outlay means the funds that were allocated for vehicles can now be put to other use

    Improved cashflow
    By not having to accrue capital for purchasing vehicles in a lump payment, cashflow will become more even each month.

     

  • Chattel Mortgage vs Lease

    A chattel mortgage is a common way Australian businesses finance cars. It is a commercial finance product where a financier lends the money to buy a car and the customer makes regular repayments.

    With a chattel mortgage, you are financing the car and take the risk for the re sale value at the end of the term. Finance is covered in your monthly payment, but you take responsibility to manage all vehicle operating costs (registration, servicing, tyres, etc.) separately.

    See our cost comparison

  • Operating Lease

    Like a rental, only pay for use of the vehicle.

    Find out more

    Finance Lease

    Vehicles are purchased by the lessor on behalf of the lessee.

    Find out more

    Which Lease is Best for My Business?