Vehicle and Machinery Finance

Let’s discuss vehicle and machinery finance

Whether your needs are small OR large, with The Mortgage Tree you are in safe hands all way. We take the time to:

Understand your business.
Determine the finance options available.
Assist you to select the appropriate funding product.

This could take the form of any number of funding structures, from an operating lease to a Chattel Mortgage or even a Hire Purchase facility.

Vehicle and machinery finance services

Operating Lease

With an Operating Lease, the lender (the Lessor) purchases the asset that the customer (the Lessee) requires and then ‘leases’ it back to the customer. At the end of the agreed lease period, the customer can return the asset. The asset will be sold at auction, or the lender may offer to sell the asset back to the customer.

A tax based lease is when the lessor purchases the asset that the lessee requires, and then ‘leases’ it back to them
At the end of the lease period the asset is returned to the lessor
The asset may then be sold at auction or sold back to the lessee
Upfront tax deductions may be available to a customer depending on their circumstances

Chattel Mortgage

This funding option is used in business in most cases for equipment finance. A chattel mortgage is when you receive what you’re buying upon delivery and in turn becomes the security for your loan.

Claim a GST credit entitlement from day one
You can borrow up to 100%
Interest rate increases will not affect the borrower over the term of the loan
Full repayment option without fees and charges
Loan repayments are GST-free

Hire Purchase

With a Hire Purchase, the lender purchases the asset and then ‘hires’ it back to the customer. The customer must hold an ABN, ARBN or ACN and the product must be used primarily for business purposes.

Hire Purchase is when the lender purchases the asset and then ‘hires’ it back to the customer
The customer must hold an ABN, ARBN or ACN
The product must be primarily for business purposes
Once the final instalment has been paid the ownership of the asset is transferred automatically to the customer

Novated Lease

Is a Finance Lease between the financier and the employee, which is then ‘novated’ to the employer. The employee chooses the vehicle and the employer pays the employees instalment obligations from the employee’s salary. If the employee leaves their employer, the employee keeps the vehicle, including the instalment obligations, or arranges for their new employer to take over the instalment payment obligations.

A Novated Lease is a Finance Lease between the financier and an employee, which is then ‘novated’ to the employer
After the employee chooses the vehicle, the employer pays the loan instalments from the employee’s salary
If the employee leaves their job, they keep the vehicle and subsequently take over the instalment obligations
Arrangements can be made for the customer’s new employer to take over instalments, if desired

Let’s discuss your vehicle and machinery finance today.

Book in a 10-minute no-obligation consultation to see how I can change your life through your finances – just like I have so many people before you.