Yarra Finance can arrange competitive rates on finance for vehicles. We can guide you through the options regarding the different facilities that are available including
- Chattel Mortgage
- Hire Purchase
- Novated Lease
- Consumer Vehicle Finance
We can finance asset purchases for business including
- Tractor Finance
- Prime Mover Finance
- Volvo Truck Finance
- Office equipment – big or small
- Fit outs
- Boats & ships
Are you an equipment seller to business?
If you are a business whether you are car wholesaler or equipment supplier, we are happy to do business with you. We service many referrals from different industries and we ensure you are paid quickly by the financiers. You will get updated by our state of the art update system that informs you where your client is at. This allows you to concentrate on future opportunities, and we can settle and maintain the current transaction up until settlement.
Are you a vehicle dealer?
We provide services for many car, truck, earthmoving, and forklift dealers. We lodge applications quickly and ensure you get the purchase funded in a fast manner. We also are accredited to do gap cover and extended warranty policies. Call us for more info on how we can benefit your business.
Find out How Yarra Finance helps you close sales easier.
Gap Cover & Extended Warranty
New Vehicle Buying Service
We offer GAP COVER & EXTENDED WARRANTY as an add on for vehicle purchases. Policies are underwritten by Eric Insurance limited. These policies give clients peace of mind limiting any extra out of pocket expenses in the even of a total loss or vehicle breakdown.
We also offer NEW VEHICLE BUYING SERVICE which saves you running around. Within an hour of us processing your enquiry you get contacted by a local new car dealer and they bring the vehicle to you for a test drive at a time of your convenience.
General Finance Structure Information
Like other equipment finance facilities, you have full use of the equipment during the term. You have the security of a predictable monthly payment, which can be lowered by adjusting either the deposit or the end of term ‘balloon’.
Unlike other facilities, however, you have ownership of the equipment from the outset. The financier registers a charge over the equipment (similar to arranging a mortgage on a home).
One of the main benefits of a Chattel Mortgage is the ability for those who account for their business on a Cash basis to claim back the GST component on their next Business Activity Statement.
While the equipment does appear on your Balance Sheet, any interest paid plus depreciation of the equipment is tax deductible with business use. Because payments are calculated on the GST inclusive price, Chattel Mortgage payments attract no GST.
At the end of the Chattel Mortgage term, the charge over the goods is cleared by simply paying the pre-determined balloon (similar to the residual value on a Lease). Note though, that you do not usually have the option of handing the equipment back as you do with a Lease or Rental. It is possible, however, to repay the contract before the end of the term.
A CHP is most commonly used when financing luxury vehicles, and offers some additional flexibility over Finance Leases by allowing you to make up-front deposits if you desire.
Like a Finance Lease, you have full use of the equipment during the term. You have the security of a predictable monthly payment, which can be lowered by adjusting either the deposit or the end of term ‘balloon’.
At the end of the CHP term, ownership is ensured by simply paying the pre-determined balloon (similar to the residual value on a Lease). Note though, that you do not usually have the option of handing the equipment back as you do with a Lease or Rental. It is possible, however, to repay the contract before the end of the term.
While the equipment does appear on your Balance Sheet, any interest paid plus depreciation of the equipment is tax deductible with business use. Because payments are calculated on the GST inclusive price, CHP payments attract no GST.
Under a Finance Lease, you have full use of the equipment during the term. You have the security of a predictable monthly payment, with a known residual at the end of the term. In addition, there is no initial outlay, so you’ll have access to the equipment without the up-front cost.
At the end of the Lease term, you can take ownership of the equipment simply by paying the stated residual value – no mystery, no hidden fees or costs. Alternatively, you can simply hand the equipment back.
While the equipment does appear on your Balance Sheet, the full Lease payment is tax-deductible with business use. While GST is payable on Lease payments over the full term, Clients with an ABN can claim back the GST component
With Rental, your capital and existing lines of credit are conserved for core business requirements: Rental does not impact your ability to borrow from your bank when you need it. In addition, Rental provides the security of a predictable monthly payment with no residual value liability – you have the equipment you need, at a constant, known cost.
Rental payments are treated as a 100% tax-deductible expense item when the equipment is used for business purposes. Since the equipment is funded as an operating expense, it does not appear on your company’s Balance Sheet.
At the end of the Rental term, you have a number of choices. You can purchase, re-rent, upgrade or return the equipment – it’s entirely up to you. Most clients choose to constantly upgrade their equipment, thereby maintaining predictable monthly payment levels, and allowing them to stay current and competitive.
Save time and money by consolidating all your business’ equipment into a single payment, simply by bundling your equipment into the one Rental.
The deed of novation remains in force until the earlier of the end of the lease term, or until the employee ceases employment.
The concept of novated leasing is central to salary packaging arrangements between an employee and an employer. Under a salary packaging arrangement, an employee agrees to forego a portion of their salary or wages in return for benefits equal to that amount.
For a novated lease, the lease and running costs of the motor vehicle, and fringe benefits tax (if applicable) are deducted from the employee’s pre-tax salary, and PAYG is calculated on the reduced income.
The tax benefit of a novated lease arises from the concessional fringe benefits tax treatment on the car, with the lease and running costs being FBT exempt. Depending on the employee’s individual financial circumstances, salary packaging a motor vehicle under a novated lease can have the effect of increasing an employee’s net disposal income