You get an honest “no hidden costs” operating lease for your business use vehicles. Everything is totally transparent – including the purchase price of the car and the residual value based on parameters we agree together. There is no large, up-front deposit and payments are treated as a 100% tax-deductible expense for tax purposes.*
This gives excellent cashflow advantages over traditional hire purchase. With SmartLease™ you avoid the pitfalls of ‘excess kilometres’ and ‘refurbishment’ charges at the end of the lease. Overall, you enjoy the benefits of ownership without tying up capital.
With Car Financing (Hire Purchase)
We simply fund the business vehicle or asset by way of a good, old-fashioned finance arrangement. The term is typically 3-5 years. Payments are not tax deductible but you do get the GST back up-front and can claim annual depreciation and the interest cost over the term of the loan.*
You enjoy the benefits of ownership but your capital is tied up and may affect other funding arrangements with your bank.
*We recommend at all times that you seek independent accounting advice with respect to the application of the various lease and traditional funding methods and how you may account for these.