This type of lease is one of the most convenient ways to finance your new vehicle.
An Operating lease allows you to enjoy the use of a new vehicle for a set term without
any of the risks associated with owning a vehicle.
 
An operating lease acts as a true hiring arrangement where the asset is treated as an expense, allowing you to finance your equipment off balance sheet for accounting purposes.

Effectively, the risks are transferred from the Lessee (you) to the Lessor (The financier)
An Operating Lease is available to both organisations and individuals, subject to certain conditions'.

Benefits of an Operating Lease

• Fixed cost for the term of the lease

• No resale or residual value

• No depreciation concerns

• Flexible term and kilometre options

• Term and kilometres may be varied to reflect usage patterns throughout the lease

• “Off balance sheet" reporting, improving key financial ratios.

• Suitable for all fleet types/sizes

• Tax effective as rentals can be claimed against taxable income

• Option to be full maintained

• Obtain almost any type of equipment without outlaying scarce capital

• Avoid owning or disposing of obsolete equipment

• Keep pace with new technology

• Budget and forecast more accurately

• Claim the full repayment amount as a tax deduction

With an operating lease assuming residual risk at lease end, you can simply walk away with no further commitment, subject to compliance with your contract terms including the “Vehicle Inspection Standards” conditions and predetermined kilometre limit.