1SPORT can match you with a comprehensive and competitive finance
solution, whether you are looking for a motor vehicle for the family or business,
a fleet for your sales staff or machinery for a factory.
Hire Purchase Agreement
A Hire Purchase arrangement is an agreement to purchase a vehicle subject to payment
terms to the finance company. It is different to a lease as you will own the vehicle
when you make the final payment. The terms of the agreement can be from 1 - 5 years.
Deposits are not required. You might choose to trade in an existing vehicle in order
to put in a deposit to reduce the amount to be financed.
You can choose to have a balloon payment as the last payment of your finance agreement.
This final payment is usually between 10% - 40% of the cost price.
Novated Lease
A novated lease is used for employees who have the option of receiving a car as
part of their salary package. The employer pays all rental payments to the financier
on the employee's behalf and the employee enjoys full use of the motor vehicle.
The term of finance agreement can be from 1 - 5 years and must be run in accordance
to Australian Taxation Office Guidelines (ATO).
The employee then novates the lease to their employer, who assumes all the employee's
rights and obligations under the lease, including responsibility of meeting the
lease payments, normally deducted as part of the employee's salary package. Deposits
are not required and the full purchase price must be financed.
The vehicle remains in the name of the employee who is the registered owner and
has control of the vehicle at all times. If the employee leaves the company, the
vehicle remains with the employee. In this situation, it is generally the case that
the employee takes over the payments or gets another employer to make the payments.
This means, the original employer is not left with an unwanted car and the employee
keeps the vehicle.
|