Finance

Enquire about Personal or Business finance or Leasing options for your new or used motor vehicle Nelson Bays Motor Group has the finance or leasing option to best suit your situation. Whether you are buying a new or used motor vehicle, talk to us about the available finance or leasing options.

Financing a vehicle

For personal or business finance for your new or used motor vehicle, we have access to a locally owned Finance company called Finance Solutions. Through it we can offer a wide range of different payment structures from weekly through to annually. In addition the interest is charged on a daily rate with no penalties for lump sum or early settlement - a big advantage to those who want to get rid of their loan as soon as possible.

Leasing a vehicle

The running of any vehicle can be a complex and time consuming matter, especially when your primary interest is in the running of your business, or home, so leasing is a great option.

"If it appreciates - buy it. If it depreciates, rent it."

Peter Gill - Motoring editor, National Business Review.

Leasing Packages

FOR BUSINESS CUSTOMERS:

Fully maintained operating lease: a lease option with fixed monthly rentals, where you simply hand the vehicle back to the dealer at the end of the term ...more

FOR PRIVATE & BUSINESS CUSTOMERS:

Residual Lease (Financial Lease): gives you the tax advantages of an operating lease but with the option of purchasing the vehicle at the end of the lease term. Ideal for GST registered customers, but also of benefit to private drivers ...more

Smartdrive - Full Maintenance Operating Lease for your business

Increasingly, companies, partnerships and the self employed are realising the benefits of leasing their vehicles. Most motor vehicles owned by businesses are non income generating assets. A Full Maintenance Operating Lease provides the key to accessing the new vehicle of your choice without the capital investment.

This lease option is simply the hiring of a motor vehicle for use over a specific period, normally two or three years. A monthly rental is established at the commencement of the contract after taking into consideration the anticipated kilometre usage and other operating factors. A Full Maintenance Operating Lease provides all the benefits of ownership without the worry of depreciation, inflation, maintenance costs and many other uncertainties involved in vehicle ownership. An "Operating Lease" as defined by the Income Tax Act and accordingly the vehicle does not appear on your balance sheet. The monthly rentals are regarded as an expense item and are therefore deductible for tax purposes.

A Full Maintenance Operating Lease also has all of the running costs of the vehicle built into the monthly rental. These include servicing and maintenance costs, replacement tyre provisions, wheel balancing & alignment, vehicle relicensing and provision for a relief vehicle in the unlikely event of mechanical breakdown. At the end of the lease period you simply return the vehicle to the lease company; maximum benefits with the minimum of fuss.

Smartdrive Residual Lease - Financial Lease

If you are looking for the most cost effective method of financing your new vehicle, a Residual Lease is the answer.

A Residual Lease is a lease as defined by the Income Tax Act and an "agreement to hire" as defined by the Goods and Services Tax Act 1985. In simple terms this legislation allows for the calculation of finance charges on the GST exclusive cost of your new vehicle, which means lower interest costs and lower monthly payments compared with other forms of financing. You pay an initial advance rental, followed by monthly payments over an agreed term. Interest rates are fixed at the beginning of the contract period. The initial advance rental and contract length can be varied to suit your requirements, and for business purchasers whose income is subject to seasonal fluctuation, structured payments can be included to accommodate such fluctuations.

Monthly payments can be reduced by incorporating a larger residual value into the payment structure. This final payment can be based on the expected value of your vehicle at the end of the contract and in effect defers part of the cost until then.

If you are GST registered, you may claim the GST content of the advance rental at the commencement of the contract and also claim the GST on the monthly payments as they are paid. The GST component of your monthly payments relate only to the principal portion of the payments and combined with the benefit of lower finance charges, gives you the Advantage.

The term of the lease contract defines the treatment of the lease (ie, as an operating lease or finance lease) for accounting and income tax purposes as follows: Lease term less than 75% of the motor vehicles useful economic life as determined by Inland Revenue.

The Residual Lease contract can be terminated early based on a settlement figure which would be advised by the lease company at the time termination was required. At the end of the Residual Lease contract, you may offer to purchase the vehicle providing that all of your obligations have been met.

Particular benefit to business users:

• Lease term less than 75% of the motor vehicles useful economic lefe as determined by Inland Revenue Department guidelines
• Monthly payments allowable against assessable income
• If you are GST registered, you may claim the GST content of the advance rental and monthly payments as they are paid
• Lease term greater than 75% of the motor vehicles useful economic lefe as determined by Inland Revenue Department guidelines
• Interest charges are allowable against assessable income
• Depreciation allowances can be claimed against assessable income
• If you are GST registered, you may claim the GST content of the advance rental and monthly payments as they are paid