7 Astonishing Benefits of Finance Lease for Auto Now Credit Customers

  • Auto Now Credit are a car finance business for customers with a bad credit history and are struggling to get a loan for a car. Offering second chance loans, bad credit car loans, ABN holder work vehicle loans, rent to own car finance and bankruptcy car loans.
Explore the comprehensive guide on "Finance Lease" tailored for Auto Now Credit customers. Dive into its workings, benefits, and redefine your driving experience.

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Every one of us, at some point, has dreamt of owning a brand-new car. However, the reality of financial constraints and budgetary limits often dampens these dreams. But what if there was a solution that allowed you to drive that desired car without making a hefty upfront payment? Welcome to the world of “Finance Lease.”

For customers of “Auto Now Credit,” understanding finance lease can open up a world of opportunities. In this comprehensive guide, we’ll delve deep into what finance leasing is, how it operates, and the numerous benefits it offers.

What Exactly is a Finance Lease?

A finance lease, also known as an Asset Lease, Vehicle Lease, or Car Lease, is a unique car finance model. It permits you to enjoy the benefits of a car or commercial vehicle without the immediate burdens of ownership. In simpler terms, while you get unrestricted use of the vehicle, the ownership technically remains with the finance company until the end of the lease term.

At the end of the lease, several options present themselves. You can:
  • Re-finance the vehicle for another term.
  • Pay any residual value and claim ownership.
  • Sell the vehicle or replace it with a new leased one.

How Does It Work for Auto Now Credit Customers?

Once you've made a choice regarding the vehicle's make and model, you can request a quotation from your chosen dealership. This quotation can be passed to your broker or finance company.

The finance company, after thorough discussions about your requirements, will then procure the vehicle on your behalf. You'll then lease this vehicle from them for an agreed period, typically ranging from 12 to 60 months. Some companies might even offer extended leasing options.

Benefits of Opting for a Finance Lease

  • Flexible Repayment Term -Choose from a range of 12 to 60 months, offering considerable freedom, especially for new businesses or individuals uncertain about their future financial commitments.

  • Transparent Costs - Know all your expenses upfront. Some agreements might even include road tax and servicing within the monthly payments.

  • Latest Model Vehicles -Experience the thrill of driving the newest models with peace of mind, knowing they're under warranty.

  • Advance Payment Options - Some lease agreements allow you to make payments in advance, offering budgetary flexibility.

  • Tax Benefits -Being able to claim the GST back on your lease repayments can be a significant advantage.

  • Lower Costs -Since the financier can claim the GST from the purchase price, you effectively pay less.

Interest Rates, Fees, and Qualifying Criteria

While finance leasing offers numerous advantages, it's essential to be aware of potential fees, including administration, service, documentation, and acquisition costs. Ensure clarity on all fees before signing any agreement.

For approval, finance companies often consider:
  • Proof of income
  • Business duration
  • Credit history
  • Business profitability
  • Valid Australian Business Number (ABN)

Delving Deeper: Finance Lease vs. Traditional Car Loans

While many of our "Auto Now Credit" customers are familiar with the traditional car loan method, it's crucial to discern the differences between this and the finance lease option.

Traditional Car Loans: Here, you borrow money from a financial institution to purchase a car. The vehicle acts as collateral for the loan. Over time, you repay the borrowed amount with interest. Once the loan is fully paid, the car is yours, free and clear.

Finance Lease: As discussed, in a finance lease, the finance company retains ownership of the car. You make regular payments to use the vehicle. At the end of the term, you have the option to pay the residual value to own the car, refinance, or move on to a new lease.

Why might "Auto Now Credit" customers prefer a Finance Lease?

Cash Flow Management: Especially for businesses, maintaining consistent cash flow can be paramount. With finance leases, there's no hefty down payment, allowing better cash flow management.

Tax Benefits: For businesses, lease payments can sometimes be written off as a business expense, potentially offering significant tax advantages.

Flexibility: At the end of a lease term, you aren’t tied down. You can opt for the latest model, ensuring you or your business is always equipped with the newest features in the automotive world.

The Environmental Perspective: A Modern Take on Leasing

With the world moving towards sustainable solutions, many Auto Now Credit customers are considering eco-friendly vehicles. But the rapid advancement in green vehicle technology can make today's top model seem outdated in just a few years.

Enter the advantage of finance leasing.

Leasing becomes a particularly attractive option for those wanting to stay abreast of the latest in eco-friendly driving. At the end of your lease term, you can easily transition to the newest, most efficient model available, ensuring you're always at the forefront of sustainable driving.
The world of car financing is vast, and while the choices can seem overwhelming, being equipped with the right knowledge can make all the difference. Whether you're an individual eyeing that dream car or a business looking for the most cost-effective and flexible solution, understanding the nuances of finance leasing can offer a pathway tailored to your needs.

FAQ

A finance lease allows customers to use a vehicle by making regular payments without owning it immediately. The finance company retains ownership until the end of the lease term.

In a traditional car loan, you borrow money to purchase a car. With a finance lease, the finance company buys the car, and you make payments to use it, without immediate ownership.

Yes, at the end of the lease term, you can pay the agreed residual value to own the car. You also have options to refinance or move on to a new lease.

For businesses, lease payments can potentially be written off as an expense, offering tax advantages. Consult with a tax professional for specific benefits.

Early termination conditions vary, but there might be charges or early termination fees. Review your lease agreement for specifics.

Finance lease terms typically range from 12 to 60 months, with some companies offering extended options.

All fees should be outlined in your lease agreement. Always ensure clarity on all costs and fees before signing.

Yes, Auto Now Credit offers finance leases for both new and select used cars.

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