What is a motorcycle lease?
A motorcycle lease is a rental agreement. The motorcycle is actually owned by the finance provider and then leased to the user for a set term. What this means is that the user has full use of a new bike that has a predetermined residual value.
How does a motorcycle lease work?
Legal ownership of the motorcycle to be leased remains with the Finance Company and you use the bike paying rent for that use for the term of the lease contract. During the term of the lease, you merely pay rent and do not obtain ownership or equity in the bike you are leasing. Under a motorcycle lease agreement you are responsible for maintenance and running costs, insurance and registration fees for the bike.
Residual
The finance lease residual is the amount that will need to be paid to the finance provider at the end of a finance lease. Finance lease residuals are set by the Australian Taxation Office (ATO).
Why lease?
· Rentals fully tax deductible if used for business use
· The Interest Rate is fixed for the term of the motorcycle lease agreement
· Lease repayments are fixed for the term
· GST on the purchase price of the motorcycle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
· GST on the monthly repayments may be claimable by your employer
Who should consider leasing?
Leasing works best when you use your bike predominantly for business ie used for business for more than 50% of the time.
A motorcycle lease is a rental agreement. The motorcycle is actually owned by the finance provider and then leased to the user for a set term. What this means is that the user has full use of a new bike that has a predetermined residual value.
How does a motorcycle lease work?
Legal ownership of the motorcycle to be leased remains with the Finance Company and you use the bike paying rent for that use for the term of the lease contract. During the term of the lease, you merely pay rent and do not obtain ownership or equity in the bike you are leasing. Under a motorcycle lease agreement you are responsible for maintenance and running costs, insurance and registration fees for the bike.
Residual
The finance lease residual is the amount that will need to be paid to the finance provider at the end of a finance lease. Finance lease residuals are set by the Australian Taxation Office (ATO).
Why lease?
· Rentals fully tax deductible if used for business use
· The Interest Rate is fixed for the term of the motorcycle lease agreement
· Lease repayments are fixed for the term
· GST on the purchase price of the motorcycle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
· GST on the monthly repayments may be claimable by your employer
Who should consider leasing?
Leasing works best when you use your bike predominantly for business ie used for business for more than 50% of the time.
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