Motorcycle Leases & Hire Purchase
Commercial Bike Finance
There are a number of commercial finance options available to businesses that are looking to expand their fleet, and we’re not just talking about cars or trucks. Motorcycles are frequently becoming the vehicle-of-choice for businesses and these days it’s not uncommon to see a bike showcasing company branding or signage, or at the other end of the spectrum bikes for farmers, couriers or other practical uses.
Depending on your requirements, Aussie Bike Loans can assist your business with a motorcycle lease, chattel mortgage or hire purchase agreement if an outright loan isn’t an option. Read on to find out more about your options or speak with an Aussie consultant today.
Motorcycle Hire Purchase Agreements
Hire Purchase is a rental agreement, but differs from Finance Lease in that the motorcycle automatically becomes yours once all terms of the agreement have been completed. With Aussie Bike Loans’ panel of lenders, ownership of the motorcycle rests with them until the final payment is made, for tax purposes though you can claim equipment depreciation and interest paid against your business income (check with your accountant).
You also have the option of including an upfront deposit or trade-in to reduce your rental commitment, while a balloon payment can also be set at the end of the term (much like a lease residual) to acknowledge the equipment’s end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement.
Whatever the requirement, Aussie Bike Loans can negotiate a repayment schedule to suit your needs.
Chattel Mortgage for Motorcycles
Essentially a charge over goods to be financed, the Chattel Mortgage allows businesses that operate under a ‘cash accounting’ basis to claim the full input tax credit from GST incurred expenses immediately.
Loan structures can be tailor made on a similar basis to Finance Lease and Hire Purchase facilities.
Motorcycle Finance Lease Agreements
Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental amount. A residual value is set to reflect the motorcycle’s value at the end of the term.
The goods are owned by the finance company, but the lease rentals are tax deductible to you, as long as the goods are used in connection with producing assessable income.
At the end of the Lease you can make an offer to purchase the motorcycle from the finance company, trade it in on a replacement, return it, or extend the lease for a further term.
Novated Leases for Motorcycles
In recent years, Novated Leases have become a popular alternative for businesses wishing to provide their employees with motorcycles.
A Novated Lease is effectively an agreement between the employee (a lessee), their employer and the finance company (the lessor).
It operates by creating a Finance Lease Agreement (refer to the Lease Agreement Section on this page) between the employee and the lender. A Novation Agreement is then entered between all parties, which transfers responsibility for the lease rental commitment to the employer during the lessee’s period of employment. When the employee leaves employment, the novation ends, with ongoing responsibility for the lease returning to the employee.
As motorcycles acquired this way are leased by the employee, there are benefits for your business and your employee. These could include:
- Potential to remove the vehicle fleet from your balance sheet.
- Eliminating administration and maintenance costs involved in managing a fleet.
- The ability to negotiate payment of motorcycle running costs with your employees.
- Freedom for your employees to choose their motorcycle while enjoying the benefits of a company vehicle.
- No on-going company responsibility for the motorcycle should an employee leave.
Find out if personal or business finance is for you. You can apply for business finance online or speak with an Aussie consultant today!