At ZK Finance, I specialise in connecting you with the best automotive finance options to suit your needs. As an experienced finance broker, I have access to a wide network of lenders, ensuring you receive competitive rates and flexible terms. Trust ZK Finance to help you drive away with confidence, knowing you have the best financing solution tailored just for you.
Business leasing can be classified as either a finance lease, an operating lease or a novated lease. The three categories vary in how vehicle ownership, disposal, and residual risk is organised. For the most part, hire purchase options work the same way as a loan which is used to purchase an asset.
To determine the best form of vehicle leasing, you can first consult with ZK Finance to consider the following:
– Do you want to own the asset at the end of the lease?
– Will you use the asset for commercial reasons more than half of the time?
– Are you looking to finance the vehicle only, or do you want a range of fleet management services?
– How long do you intend to use the car, and how far will you travel?
– Do you require the commodity to be seen on the business balance sheet?
Novated lease is an agreement between an employee, an employer and a financier. Where a lease is taken out in the employee’s name, and the
employer agrees to take on the repayment obligations for the term of the employee’s employment. The contract is not recorded on the employer’s
balance sheet.
If the employee leaves this business, the lease may be transferrable to a new employer, or the employee may be responsible for the repayments without
help. The original employer then bears no financial obligation and will not be stuck with a car they no longer require.
What’s the benefit of a Novated Lease contract? The employee can benefit from a tax reduction due to the repayments being made with pre-tax dollars. As a result of the transaction between the employee and the company, there could be fringe benefits tax consequences, based on the car valuation and kilometres travelled. Therefore, collaboration with a mortgage broker and tax advisor is advised, as similar to a finance lease, residual risk rests with the employee.
A financial business lease is a type of rental arrangement where a vehicle is leased for an agreed-upon period and rental. A residual value is established up front to represent the asset’s value at the end of the term; this is then accounted for on the balance sheet.
Many financing leases do not give you the opportunity or right to buy the asset. However, it is common practice for most financiers to accept a bid to buy the asset at the end of the period for the residual value.
You may either trade the vehicle in on a replacement, sell it to the financier and pay the difference between the residual and market value (residual risk), or even renew the lease for another year.
A fully maintained operating lease provides an organisation with the advantages of a hassle-free system of vehicle use. The lease is financed, so the asset does not show on the balance sheet. Expenses associated with the vehicle, such as repairs, insurance, and servicing, are covered by a single monthly charge.
Once you have decided on the car, you then need to determine the duration of the contract and how many kilometres you’ll drive in a year. The financier can calculate a monthly loan based on this. You return the vehicle to the lender at the end of the lease period, with no residuals or balloon payments necessary.
Choosing ZK Finance as your finance broker for automotive and equipment finance offers numerous advantages:
Access to Multiple Lenders:
As a finance broker, I have established relationships with a wide network of lenders, giving you access to a variety of financing options that you may not find on your own
Competitive Rates:
I negotiate on your behalf to secure the most competitive rates and terms, saving you money over the life of your loan or lease.
Tailored Solutions:
I take the time to understand your specific needs and circumstances, ensuring that you receive a financing solution that is customised to your situation.
Expert Guidance:
With my expertise in automotive and equipment finance, I provide clear, unbiased advice to help you make informed decisions.
Time Savings:
By handling the research, negotiation, and paperwork, I save you valuable time and effort, making the financing process smooth and hassle-free.
Simplified Process:
From application to approval, I streamline the entire financing process, keeping you informed and supported at every step..
