Motor Vehicle Finance

With over 40 lenders we will find the right option for you

Our mission is to offer you the most suitable motor vehicle finance options in the marketplace to meet your business expectations.

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FINANCE OPTIONS

Your Motor Vehicle Finance Options

There is a lot to think about when you buy a car for your business. First, it’s the type of vehicle you need, and then you need to consider your cash flow, tax implications, and repayments. When you’re not sure where to start, choosing the right loan can be tricky. A little knowledge can go a long way, so here’s a quick look at the Top Step Finance loan options available to finance your next business vehicle.

Chattel mortgage

A chattel mortgage is similar to a standard secured loan.

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Finance lease

A finance lease is like a long-term rental. Usually over 5 years.

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Commercial hire purchase

The lender purchases the vehicle, you lease it back.

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Novated lease

Is an agreement between you, your employee, and a finance provider.

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Finance options

Cars for business use. Keeping your business on the road and running smoothly. With over 40 lenders, we’ll find the right option for you. See below the most popular car financing facilities.

Chattel Mortage

A chattel mortgage is similar to a standard secured loan. You’ll borrow money for the purchase and repay the loan through a series of monthly repayments over an agreed term. Although you’ll own the vehicle outright, it will be held as security against the loan.
Once you’ve paid the loan out in full, the mortgage over the vehicle is removed. Residual or balloon payments are available which can reduce your monthly payments over the term. You can then choose to refinance the residual or trade the vehicle in at the end of the term.
Benefits include:
Flexible repayment terms from 1 – 7 years
Option to reduce monthly repayments with a residual or balloon payment
Fixed interest rates and monthly repayments
Potential to claim tax deductions and input tax credits if the vehicle is used for business purposes and you’re registered for GST

Commercial HiRE Purchase

Commercial hire purchase is a finance option where the lender purchases the vehicle and you agree to hire or lease it for a fixed monthly payment over a set period. Once the contract is finished and you’ve paid the total price of the vehicle and any interest charges, ownership transfers to you. It can be a great option if you’re registered for GST on an accruals or cash accounting basis. This option is available to both individual and business borrowers if the vehicle is predominantly used for business purposes. Benefits include:

Flexible contract periods from 1 – 5 years
Fixed monthly repayments
Reduced monthly payments with a residual option at the end of the term
Potential to claim tax deductions and input tax credits if the vehicle is used for business purposes and you’re registered for GST
Option to pay a deposit to reduce the total payments

Finance Lease

A finance lease is like a long-term rental. You choose a vehicle and the lender purchases it on your behalf.
You then lease it from them over an agreed term and pay a fixed monthly repayment.
You’ll have several options available to you once the lease ends including buying the vehicle outright by paying the residual value.
keeping the vehicle and starting another lease to pay off the balance, or trading the vehicle in for a new vehicle under a new lease.
Benefits include:
Flexible contract terms ranging from 1 – 5 years
Lower monthly repayments with an agreed residual payment
Fixed interest rates and monthly repayments
Potentially significant tax deductions

Novated Lease

Novated leasing is an agreement between you, your employee, and a finance provider. Your employee chooses the car they want and signs a finance agreement in their own name. Then all three of you sign a novation agreement.
Your business will make monthly lease payments to the finance company on your employee’s behalf. Your employee will agree to salary sacrifice the lease, running costs, and fringe benefits tax (FBT) associated with the vehicle from their pre-tax salary. This reduces their taxable income and associated PAYG tax.
Benefits for business owners include:
Saving time and money on establishing and maintaining a company fleet
Reduced payroll tax
Increased retention and loyalty from employees
No financial responsibility for the vehicle if an employee leaves your business

we provide total car finance buying solutions

Top Step Finance has been helping businesses get the best finance options for their vehicles and equipment by always improving their systems and expanding their panel lenders to ensure you have choice and flexibility.