Trying to figure out which finance product is right for you can be confusing. In fact, we recommend discussing your situation with your tax professional. However, to simplify your decision process we outline the choices available to you here.
Leasing finance products fall into two categories as either a finance lease or operating lease. They differ in the way they treat ownership and disposal and residual risk on the vehicle. Hire purchase options are available and function in a similar fashion to a loan to purchase an asset. Let’s investigate further to see if leasing finance is right for you.
In order to decide on the most appropriate type of finance you first need to consider the following:
• Do you wish to own the asset at the end of the lease period?
• Do you use the asset for business purposes more than 50% of the time?
• Are you looking to finance the vehicle only, or do you also want a range of fleet management services?
• How long do you intend to keep the vehicle and how many kilometres will you travel?
• Do you want or need to show the asset on the company balance sheet?