JDFP - Diversity by Design

Motor Vehicle Leases and Mortgages

Chattel Mortgage
A Chattel Mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing a new vehicle. A Chattel Mortgage is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new vehicle or upgrading an existing vehicle.

Commercial Hire Purchase
Commercial Hire Purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract, or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit your individual circumstances.

Novated Lease
A novated lease is a three way agreement between the employer, employee and the lender.

The employer, employee and financier sign a Novation Agreement, whereby the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer makes the monthly lease payments on behalf of the employee. Should the employee leave his or her employment for any reason, the Novation Agreement ceases and the obligations assumed by the employer revert to the employee as the registration is in the employee’s name.

Please contact us for a disucssion about your personal situation and finance options.


Note on GST
Under both a Chattel Mortgage and Commercial Hire Purchase agreement, the Goods and Services Tax (GST) is contained in the purchase price of the vehicle, but does not apply to the monthly repayment or balloon (final instalment) on the contract.