An operating lease is simply a rental agreement. In essence, you are borrowing a car; you are allowed to operate a vehicle for a fixed term with monthly repayments. Upon reaching the end of the finance operating lease term, you simply give the vehicle back (generally in good condition) and the lease is terminated. There is no capital outlay, making your own cash flow management that much easier. No residual payments need to be made at the end of the lease term.
A finance operating lease is suited to sole traders, companies or individuals who would use the vehicle primarily for business purposes (especially if the required distance to be travelled is significant).
Benefits of a finance operating lease Australia include:
An operating lease Australia can make budgeting and cashflow management simpler with a consolidated monthly invoice, which can also include costs for maintenance, registration and running costs to provide a “no surprises” contract. At the same time, an operating lease transfers the risk away from you and your business to the finance provider.
At the end of the lease contract, you have several options:
An operating lease is just one of many types of vehicle finance available in Australia. You might also consider novated leasing, car leasing, chattel mortgage or hire purchase. As qualified and fully licenced car finance experts, Barling Finance can offer you advice across the full range of options, help you compare the tax implications, costs and eligibility requirements to enable you to make an informed decision fast and get into the car you want without any hassles.