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How Car Leasing Works

leasing-car

If you work full time for a company and would like to own a car, you can opt to have a car leased on behalf of your company. Car leasing is another car finance product where you can purchase a brand new car with the purpose of using the car for business or work purposes. The car leasing agreement is varied from 2 to 5 years, and the read disadvantage is that the lender will keep the ownership of the car being leased.

You can negotiate the lease agreement based on your preference, for example you can choose to pay a larger residual payment at the end of your lease term in return for a smaller monthly payment, or the other way around, where you opt to have a smaller residual amount to pay at the end of the lease but paying a much bigger monthly payments. By choosing to pay the final residual amount of payment, you can actually own the car.

The benefit of leasing a car, is that all the cost related to the car is known in advance and also the car monthly payment is fixed, and you can use this figure for your tax benefit too. Especially if you are a self-employed. You can claim the repayments against your company tax return.

Another excellent point to be made on car leasing is that at the end of your term, you can choose to trade for another car or simply refinance the final payment and continue with the leasing.

Ready to get your dream car financed? Give our friendly Sydney Car Loans office a call on 1300 856 846.