Truck Finance Perth
Truck Finance Perth – Flexible Commerical Vehicle Finance Options
Whether companies are in mining or farming, and no matter what load they need to haul – truck finance is an essential component of doing business in Perth and all over Australia. With vast distances to cover and harsh conditions all year round, Western Australian industry needs modern, reliable trucks – and a range of flexible options for funding.
Matching the nature of your business with specialist lenders is the key to finding the most cost-effective finance solutions for transport.
How Savvy Helps Australian Business Find Their Ideal Finance Solution
At Savvy, we understand that time off the road is usually money down the drain, and that’s why we take your funding needs seriously – and find your solutions fast. Our highly-trained commercial finance brokers will look at your business specifics and what you need to achieve, and then they’ll present practical, tailored options.
We deal with more than twenty-five specialist lenders who offer a wide range of products designed specifically for the transport industry.
Why You Should Choose Savvy to Find Truck Finance Deals
When they’re sourcing truck finance, Perth businesses turn to Savvy. More lenders, expert consultants, quicker solutions
Truck Finance Perth – Options, Benefits, Tax Implications
Truck Finance Lease Vs Operating Lease, Truck Chattel Mortgage Vs Truck Leasing – Comparing All Your Options
A finance lease comes with a residual amount which is due at the end of the term. That essentially means you’re only paying down the vehicle’s depreciation during the agreement – not the total value of the truck. When the term ends, you can pay the residual and own the vehicle, refinance and extend the lease, or trade the truck in and start a new agreement. You account for finance as an operating expense until the term ends, so you can’t claim for depreciation, but all payments are tax-deductible.
The best practice is being upfront with your property ownership details, ongoing expenses, and debts or other loans. You’ll also need to provide information on the car’s make, model, colour, and Vehicle Identification Number (VIN), registration details, and purchase price before a lender or broker will approve your car loan. Unsure about applying for a car loan? Talk to the team at Savvy for expert advice and help.
A truck or heavy vehicle operating lease provides businesses with a fully maintained truck, but they carry none of the risks of ownership or asset disposal. Operating leases include running costs like insurance and fuel, servicing and maintenance, and even registration. You pay one monthly charge for everything, removing most of the administrative burden of operating individual or fleets of heavy vehicles. At the end of the lease, you can hand the truck back, or you can make an offer to buy.
1 – 5 Years
1 – 5 Years
The business eventually owns the asset
The lender owns the asset
The business maintains the asset and is responsible for the administration
The lender maintains the asset and is responsible for the administration
The lease is based on the GST-free value of the truck. Claim GST on repayments
Claim GST on the rental payments throughout the lease term
Interest is tax-deductible
Interest is tax-deductible
Own the asset or trade in for a new truck
Hand the asset back or make an offer to purchase
Residual gets fixed as per ATO guidelines – business carries the resale/residual risk
No residual amount and the lender carries all the resale risk
Chattel mortgage truck finance is an excellent option if you’d prefer to own your vehicle from the start of your agreement. The lender forwards funds to the vehicle vendor, and there’s a mortgage on your truck until you repay the loan. That keeps the interest rate lower, and you can claim depreciation during the finance term. Chattel mortgages work well for many haulage companies, logistics businesses, and even farmers or construction firms that need to run relatively expensive heavy vehicles for more extended periods. Residuals aren’t ATO-set, so can be adjusted to match cash flow projections.
While a chattel mortgage is a more traditional secured truck finance option, leasing means the lender retains ownership of the asset until the term ends. That makes accounting for a lease different. Rather than claiming depreciation and GST on the purchase price, lease payments become a cost of doing business and are therefore tax-deductible. Perhaps the least flexible aspect of a lease is down to the fact the lender owns the asset. That means the residual isn’t adjustable – so your business wouldn’t be able to tailor repayments in the same way you could if you were using a chattel mortgage.
Terms run between one and seven years
Terms run between one and five years
You own the asset during the finance term
The lender owns the asset during the term
Interest on all the repayments is tax-deductible
All lease payments are fully tax-deductible
You can adjust the residual to make repayments more manageable
Any residual gets set according to ATO guidelines and can’t be adjusted
Your business finances the purchase price plus GST
The lease gets based on the ex-GST value of the truck
Choose to use a deposit or borrow 100%
You can’t use a deposit
There is no further GST to pay – either on repayments or the residual
You pay GST on the repayments and any residual amount
You claim depreciation during and after the finance term
The lender claims depreciation during the lease agreement
Your business claims 100% of the purchase price GST when you file your next BAS
Your business claims GST on repayments back throughout the term
Truck Finance Perth FAQs – Your Questions Answered
Commercial Vehicle Loans and Leases: Answers to the questions about truck finance Perth customers most frequently ask
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