It's important to know the finance options
But most of us don't stick around to hear them all
At some point there's too much information to take in, but here are some items to at least know of (and ask questions about later)
Some basics
- The finance loan type is always lease.
- Finance terms range from 12 mths to 60 mths
- Monthly instalments are called are Rentals and paid in advance
- Structured payments are where the first payment or two are absorbed by the remaining payments.
- Residual minimum value is established by the ATO
- The is usually a document (or setup fee) that is amortised into the rentals
The options you decide
- Lease term (typically 36 months)
- Rental is due on the day the finance settles unless you have a Structured payment (and for simpler payroll integration)
- Include the first insurance premium.
- Include Lease protection or GAP cover insurance
- Any aftermarket warranties
Where to next
I'm ready to do the numbers