Home > Finance

Novated Lease

A Novated Lease is a finance arrangement where an employee leases the vehicle from TFS, however, the employer assumes the obligation to make the lease payments for the term of the lease as part of an employee's salary package. For the first year, the lease can be structured to include all on-road, registration and insurance costs (including Toyota Extra Care products and services), and may constitute a very tax effective means of employee remuneration. On termination of employment the employee assumes the liability for lease payments however, by agreement, may novate the lease to their new employer.  Pennant Hills Toyota and TFS recommend that customers obtain their own independent financial and taxation advice concerning novated leases.

Finance Lease

A finance lease offered by TFS represents a popular solution for businesses because it enables you to acquire the vehicle of your choice now, without having to arrange any deposit. This means you can retain your capital for other purposes.
In addition, where your vehicle is used for income producing purposes, your payments may be tax deductible. However, we recommend that you seek appropriate advice from your taxation or financial adviser.
Your payments are also fixed for the term of the lease, with a residual value determined in keeping with taxation guidelines and the predicted end-of-lease value of the vehicle to be leased. At the end of your lease period there are a number of options available to you which can be discussed with TFS.

Term Purchase

This finance option offered by TFS represents the ideal choice if you seek the security of vehicle ownership. In essence, ownership of the vehicle passes to you upon receipt of your final installment.
If you wish, all on-road, registrations and insurance costs, (first year only) and Toyota Extra Care services, can be included in your monthly installments. You can also choose to structure your agreement over a 12-60 month term with a final balloon payment, thereby setting your regular monthly payments to suit your budget requirements. If desired, the trade-in on your current vehicle can be used as a deposit to further reduce your payments.
The flexible nature of this agreement means you can choose to keep your vehicle at the end of the term by simply satisfying all of your obligations under the contract.
Where your vehicle is used for income producing purposes, interest charges, depreciation and other car related expenses may also be tax deductible. However, we recommend that you seek appropriate advice from your taxation or financial adviser about this financing option.

Operating Lease (Complete Lease)

A CompleteLease is a managed operating lease facility offered by TFS for small to medium businesses with fleets of up to 20 vehicles. It is a simple and convenient way of managing your vehicle fleet.

With a CompleteLease a new vehicle is leased for a specific term at a fixed monthly rental which includes vehicle maintenance and service costs. Unlike a traditional vehicle lease there is no residual value obligation at the end of the term, although the vehicle must be returned in accordance with agreed fair wear and tear conditions.

Business Vehicle Loan

A Business Vehicle Loan from TFS offers a flexible and tax effective means of financing motor vehicles for business purposes. Under a Business Vehicle Loan your business owns the vehicle and TFS takes a mortgage over it, so it remains an asset of your business.
You can choose to structure your loan over a 12-60 month term with the option of a final balloon payment, thereby setting your monthly repayments to suit your cash flow requirements. There is no GST on monthly payments under a Business Vehicle Loan. It also offers the flexibility of daily interest calculations on the outstanding principal balance such that extra repayments will reduce the loan period and total interest payable.

For more information contact our Business Managers at Pennant Hills Toyota Finance and Insurance department.