Leasing FAQ

Leasing FAQ

Answering the most common questions

Our Leasing FAQ is here to help and always available, feel free to contact us for more information.

How much can I borrow?

The amount of money you can borrow, commonly known as your ‘Borrowing Capacity’, differs from lender to lender. Some lenders will lend you more than others. To establish your approximate borrowing capacity contact us for a more specific overview for your individual situation.

What is a Balloon or Residual payment?

Balloon payments or Residual payments are a way to reduce your monthly finance repayments by deferring a percentage of the vehicle purchase price until the end of the finance contract.

When your residual payment is due you may either pay the residual in cash and own the vehicle, sell the vehicle paying out the residual with the funds from the sale or refinance the residual amount over another shorter term.

How much deposit will I need?

As a rough guide it is recommended that you budget 5 – 7% of the purchase price, on top of your deposit, to cover fees and charges. These fees and charges may include, but are not limited to:

  • Registration
  • Stamp Duty
  • Dealer delivery fees
  • PPSR check
  • Insurance
  • Vehicle inspections

What happens when I complete an enquiry form?

Once you have completed our online enquiry form, a Team Member will be in contact with you to answer any immediate questions you may have and arrange a convenient time and discuss the appropriate finance. These consultations are absolutely obligation-free. Leave the hard work to us and get it done right the first time.

What documentation will I need to provide?

In conjunction with the submission of your official finance application you may need to provide supporting documentation that confirms your identity and substantiates your income. Documents can include:

  • Drivers License
  • Birth Certificate
  • Recent payslips
  • Tax returns
  • Bank statements
  • Rates notices (if you own existing property)

Our experience finance team will be better able to provide an accurate overview of what is required for your individual situation.

What is and when does settlement occur?

Settlement is the completion of the sale, when the borrower takes possession of the goods and the term takes effect. Settlement usually takes place 2  weeks from the date the finance application is approved.

How often can I make repayments on my lease?

Lenders these days offer flexible regular repayment plans but most are fixed by the term approved. You can choose to pay weekly, fortnightly, twice monthly or monthly. The repayment can therefore be matched to your pay cycle.

Which lenders does Lifestyle Loans represent?

We have access to the some of Australia’s best finance providers- Macquarie and Capital Finance are but just a few.

What is a Vehicle Chattel Mortgage?

Need a car for business? Want flexible payments? Would you like ownership the vehicle now, rather than after it is paid off? Chattel Mortgage might be for you.

The main difference between Motor Vehicle Chattel Mortgage and Asset Purchase or Leasing is that you have 100% ownership from day one rather than gaining equity in the vehicle with each rental payment and not owning the asset till the loan is paid off. This product may be of benefit to business customers who utilise a cash accounting system (we recommend you speak with your accountant for further advice). So if you use your car for business and want flexible payments to suit your cash flow, would like immediate ownership of the asset and the option of claiming back the full input tax credit then Motor Vehicle Chattel Mortgage could be the best option for you.

In most cases you can choose to either finance the whole purchase or pay a deposit up front. You can also choose to include balloon payments up to any amount at any time during the rental period, so you can own the car sooner.

Features

  • Flexible: terms of between 1 – 5 years with an option of a balloon repayment at end of contract to allow repayments to suit your budget.
  • Extensive: loans start from as low as $5,000.
  • Personalised: repayments are fixed for term of contract and can be structured to suit you.
  • Comprehensive: 100% finance or with an optional deposit / trade.
  • Convenient: repayments can be made via direct debit and BPAY.

Extra Benefits

  • Super-fast approval.
  • This product may offer tax advantages. Speak to your accountant for further information.
  • Structure repayments to suit seasonal cash flow.
  • Repayments fixed for the term of contract which means you can easily budget your monthly expenditure.

What is a Motor Vehicle Finance Lease?

Use a car for your business? Want lower monthly payments AND the option to upgrade your car at the end of the term? Then this is a plan that might suit you.

People who clock up a lot of kilometres, or who need the latest and best models, often choose this plan. It’s useful if you drive for business and want lower monthly repayments plus the option to upgrade your car at the end of the loan.

Features

  • Flexible: terms between 1 – 5 years with a residual value at the end of the contract so you can make repayments to suit your budget.
  • Extensive: plans start from as low as $5,000.
  • Personalised: repayments are fixed for term of contract and can be structured to suit you.
  • Comprehensive: 100% finance.
  • Convenient: repayments can be made via direct debit and BPAY.

Extra Benefits

  • Super-fast approval.
  • This product may offer tax advantages. Rental payments are generally fully tax deductible, speak to your accountant for further information.
  • Seasonal cash flow issues can be structured into repayments.
  • Easy to budget because repayments can be fixed for the term of contract.

What is a Motor Vehicle Novated Lease?

Need to use a car for your work? Want to be able to choose the car and take it with you if you leave the job? Then a Novated Lease may be for you.

This loan is designed primarily for people who wish to choose their own company car then salary-sacrifice the monthly loan repayments – which may offer tax advantages. Novated Leases are typically three-party arrangements: the employee chooses the vehicle; the lender buys the vehicle; the employer pays the lender the monthly rental payments out of your pre-tax salary dollars.

Features

  • Flexible: payments are negotiated in your salary package and are organised by employers.
  • Economical: payments are made from your pre-tax salary.
  • Portable: you can take your car with you when moving between employers.
  • Extensive: loans start from as low as $5,000.
  • Comprehensive: 100% finance.
  • Convenient: repayments can be made via direct debit or BPAY.

Extra Benefits

  • You can choose your own vehicle.
  • Super-fast approval.
  • Novated leases are easy to transfer to a new employer.
  • Fixed repayments mean it’s simple to budget.
  • Potential FBT and income tax benefits.

What is an Asset Purchase?

Asset purchase is a form of business finance that enables customers to purchase goods for their business as an alternative to lease. Unlike leasing, the amount financed can be less the deposit and or trade-in.

Features

  • Flexible: 100% finance or less deposit/trade-in or equity.
  • Economical:1-5 year term with a balloon as per taxation guidelines or fully amortised
  • Portable: Fixed interest rate aids in cash flow budgeting
  • Extensive: loans start from as low as $5,000.

Extra Benefits

  • Preserve cash reserves.
  • Monthly in advance/arrears or structured payment options.
  • The asset is depreciated for tax purposes by the hirer/borrower, with deductions also for the interest expense.
  • Fixed repayments mean it’s simple to budget.
  • Potential FBT and income tax benefits.

Finance is subject to credit assessment and approval. Credit fees and charges are payable. Terms and conditions apply. Our Leasing FAQ will be updated from time to time and is current as of 24/6/2014.

For more information on how and where to find a better deal from an extensive panel of Australian banks and secure lenders, or to speak to one of our leasing specialists, contact us on 03 9663 0009 or click here