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An Operating Lease is suitable for all GST registered businesses, including not for profits - it provides the use of the vehicle for an agreed period, at an agreed amount of kms, with a range of services included.
A key benefit is that the client doesn’t own the vehicle.
The client therefore has no risk on disposal / used car values (this risk is underwritten by the leasing company) as the vehicle is simply returned at the end of the contract – providing a valuable safety net.
Working capital remains within the business, giving a better return on investment
This provides a valuable budgeting tool – so no nasty surprises!
If circumstances change, the contract can usually be revised at no cost to reflect a different km allowance.
A typical contract would be for say 3 years, and include –
- Maintenance
- Servicing
- Tyres, Batteries, Exhausts
- Fuel card (no actual fuel, simply as a convenience, a budgeting tool)
- Roadside Assist
- Rego / CTP for the whole term
- Accident Management
- Toll Management
- Can include Comprehensive Insurance at extra cost