This type of finance is a loan
agreement allowing you to borrow funds to buy a car by providing
security for the loan by way of a charge over the vehicle to the lender.
If you are registered for GST you can claim any GST credit
entitlement you may have upfront via your Business Activity
Statement.
The benefits:
•
You can finance 100% of the vehicle purchase
price, or place a deposit.
•
You are protected from interest rate
fluctuations during the term of the loan.
•
You can repay the loan at any time during the
term of the agreement.
•
You don't pay GST on the loan or the
repayments.
•
If you
use your car to generate assessable income, the interest
component of the repayments and the depreciation on the car may
be tax deductible.
