Simply put a car lease is an arrangement where the lender purchases a vehicle on behalf of a customer. This customer then leases the vehicle back from the lender. In exchange for use of the vehicle the customer makes regular payments. A car lease can be a great option for buying a new car and can work for both self employed and directly employed applicants. Car Leases are often made out to be a more flexible arrangement when compared to other alternatives. This is not always true as there is no way to engage finance without some responsibility.
Whilst a Car Lease is not always suited to all people, there are some examples of where a Car Lease can provide a better outcome. Like anything it important that you compare the advantages and disadvantages.Don’t forget that you have more than one option when it comes to vehicle finance. Car Loans are also an effective way of purchasing a vehicle but this is a different type of transaction.
One of the potential advantages of a Car Lease would be how the fiscal liability is reflected on a businesses financial statement. In some circumstances it is a good idea to seek the advice of your Accountant before making any final decision.
If you are the sort of person who regularly needs to change their vehicle than a Car Lease could be a great match for you.
In some ways a Car Lease could be compared to a long term rental however you need to be aware of the costs and conditions. When in doubt – call your broker! Our Finance Brokers have years of experience and have helped so many Tasmanian’s get the most out of their car lease.
Find out if a car lease is the right option for you. Book a free consultation with one of our expert Finance Brokers today.