Car Finance

Car Finance
Car Loans, Vehicle Finance*

CommunityBE$T offers several loan products suitable for the purchase of your next Motor Vehicle, Light Commercial, Motor Cycle, Leisure or Water Craft. Whether you are purchasing for personal or business use, finance can be arranged for transactions from $10,000 to $350,000.

Product Range

Commercial Hire Purchase (CHP)

Chattel Mortgage

Finance Lease

Novated Lease

Indicative Applicant Profile*:

Minimum Age – 18yrs

Australian Citizenship /Permanent Resident

Employed at least 20 hrs per week

Minimum Gross Income or Salary – $20,000 p.a.

Minimum of 6 months renting if not a home buyer

Personal Use – Individual or Couple

Business Use – Individual, Sole Trader, Partnership, Public or Private Company

Commercial Hire Purchase (CHP)

A very flexible product sometimes referred to as a Lease Purchase.

With a CHP the lender is the ‘owner’ of the goods whilst you are the ‘hirer’ of the goods. Upon receipt of the final payment (which may be a balloon payment²) ownership of the goods automatically transfers to the hirer.

Trade – in equity or cash deposit can be included to reduce the amount financed.

Tax deduction for business purposes is generally the interest on the facility and depreciation¹ on the equipment.

Chattel Mortgage

In most respects identical to a Commercial Hire Purchase product. Key difference lies in the ownership of the goods – lender is not the owner of the goods.

This distinction allows ‘business use taxpayers on the cash method’, to obtain a full input tax credit for any GST paid in relation to the purchase of the goods.

Consumer / Goods Mortgage

Terms are similar to Chattel Mortgage. Goods are owned by the borrower/user.

Generally there is no tax deduction available.

Finance Lease

With a Finance Lease the vehicle is owned by the lender ‘lessor’ and leased to the user ‘lessee’ over a set term with a Residual Value² at the end. A lease is generally not a flexible product and the lessee can have no equity in the goods (no deposit/trade-in). The Residual Value² (end value) must be set within Australian Taxation Office guidelines depending on the ‘effective life’ of the goods and the lessee guarantees payment to the lessor, of the residual value of the asset at the end of the term of the lease. Repayments are generally tax deductible in full.

“Depreciation” in general terms, is the Tax Office allowance for the decrease in value of certain equipment owned and used in the course of business. The allowance varies reflecting what effective life the equipment has.

Residual Value is the estimate, made at the outset, of the likely value of the equipment at the end of the lease term

Novated Lease

When purchasing your next vehicle consider the option of leasing a vehicle as part of a Salary Package/Salary Sacrificing arrangement with your employer.

A Novated Lease is a flexible purchasing solution with advantages for both an employer and employee.The Finance Lease agreement is still between you and the financier but you and your employer enter into a Deed of Novation where your employer pays the lease payments and claims the tax deduction for the lease payments. You, the employee can maximise the value of your salary by paying for the vehicle and running costs with pre-tax dollars thus in effect reducing your wages tax. However, if you leave your employment, all obligations of the lease payments revert back to you.

To arrange a Pre-Approved Credit Limit for your next purchase or make further enquiries, contact our Finance Centre on (02) 4633 8700 or email us and we will contact you.

Sometimes it can be a hassle substantiating your real income!

Whether you are Self Employed, a Contract Worker, Fulltime Investor or Wage Earner and have trouble substantiating your real income, then Lo Doc Leasing or Financing may be of interest to you.

*Finance/Loan products subject to application and approval. Terms, conditions and eligibility criteria apply. Fees and charges may be payable. On all occasions you will be asked to show that you have the capacity to repay the loan from your existing income.

CommunityBE$T does not provide tax and accounting advice. Product descriptions are for information purposes only. Please seek independent advice to ensure you have the best finance solution for your personal or business needs