Choosing the right finance structure for your new car or commercial vehicle can be a difficult. It is important to make the right choice, as the wrong option can cost you thousands in fees, extra interest, exit penalties and missed tax deductions, Contact our Business Managers and they will examine all of your finance options and help you find the right solution for your needs.
Individuals have a range of personal car finance and personal car loan options available to them, the choice of which will depend on how often you use your vehicle for business, whether your employer offers you salary packaging and the type of car you want to buy. Your accountant is the best person to speak to if you think that there may be a tax benefit involved in financing your vehicle. Basically there are two products available to an individual. In summary they are:
1. Commercial Hire Purchase (CHP)
Commercial Hire Purchase is a flexible finance option that suits some individual borrowers who use their vehicle for business purposes. A CHP is a commercial finance product where the customer hires the vehicle from the financier for a fixed monthly repayment over a set period of time. CHP can also be known as a Corporate Hire Purchase, Hire Purchase or Offer To Hire, and is often abbreviated as CHP or HP.
2. Car Loan
More specifically a secured Car Loan, is a type of loan where the financier lends money for the purchase of a vehicle and also takes security over the vehicle to protect the loan. A Car Loan is can also be known as a Consumer Loan or a Secured Car Loan.
The most appropriate type of finance for each business' needs will depend on business structure, cash-flow requirements, GST registration status and tax considerations.
Basically a Finance Lease or Car Lease is a commercial finance product which enables the customer to have the use of a car or commercial vehicle and the benefits of ownership, while the financier retains actual ownership of the vehicle.
Car Leasing is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. It is also ideal for employees who want to salary package a vehicle through a Novated Lease as part of their remuneration. Car Leasing offers numerous benefits including lower monthly payments as the GST contained in the car's purchase price is claimed back by the financier, only the vehicle's price exclusive of GST is financed. The product chosen will determine future Tax implications for the business therefore we recommend talking to you financial advisor or Tax Accountant before deciding on the method of obtaining funds.
Tyre & Rim Insurance
Our market leading product is a simple and cost effective way to ensure your car remains on the road by providing protection against tyre punctures/damage or any wheel rim becoming cracked, warped or misshapen, subject to policy benefit limits. Optional benefits of emergency accommodation and 24 hour roadside assistance
Motor Vehicle Insurance Cover
For vehicles accidentally damaged, stolen or burnt anywhere in Australia. Protection for claims made against you resulting from damage caused to someone else's property of up to $20 million, plus a range of additional benefits.
Provides protection in the event your vehicle is deemed a total loss through theft, fire or accident by your comprehensive insurer, by insuring the gap between the total loss settlement paid by the comprehensive insurer and the amount required to pay out the related loan balance, subject to policy benefit limits.
Loan Protection Insurance
LPI products provide protection for your loan obligations when unexpected life events arise, subject to policy benefit limits.
Purchase Price Protection
Purchase Price Protection provides protection in the event your motor vehicle is deemed a total loss through theft, fire or accident by your comprehensive insurer, by insuring the difference between the total loss settlement and the original purchase price you paid of the vehicle, subject to policy benefit limits.
Our extended warranties provide protection in the event of a mechanical failure or defect and the confidence that comes from knowing you're protected long after the manufacturer's original warranty has expired.
The insurance products described on this page are insured or issued by Swann Insurance (Aust) Pty Ltd ABN 80 000 886 680 AFS Licence No. 238292 (Swann). This website may contain general financial product advice which does not take into account your personal financial circumstances.
Please consider the relevant Product Disclosure Statement available by contacting our Business Managers before making a decision about an insurance product featured on the website. If you have already obtained insurance provided by Westpoint Ford, please refer to the PDS that was issued to you at the time of purchase as the benefits, exclusions and level of cover may have changed