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Why get finance for a vehicle?

Are you in the market for a new car, truck or tractor?

Now is a great time to buy one with End of financial year sales coming up!⠀

Getting finance is one strategic way to not spend your hard earned cash but instead use the banks money.⠀

Also, if you’re ever considering purchasing, it is always good to know what your finance options are and how they can benefit your cashflow management. These are:⠀

Hire Purchase - You are essentially ‘renting’ the vehicle from the bank. The bank owns the asset and ownership transfers to you once the loan is paid off, which means it is not on your company balance sheet until all the debt is repaid.⠀

Chattel Mortgage - These allow you to purchase with the banks money and also own the vehicle. For business owners, this will allow you to keep the asset on your balance sheet from day one.⠀

Novated Leases - Fairly common with salary packages, which can benefit you by making pre-tax and post-tax repayments.⠀

Thanks to fairly new changes in thresholds, assets can be written off by up to $150,000! Before you go buy one, it is always best to double check with your accountant to make sure you’ve got the right advice with your business.⠀

If you've got any questions, give us a call!

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