Each finance option operates differently, and one may suit your circumstances more than another. That’s why it’s important to make an informed decision supported by expert advice when choosing automotive finance. The option you choose can impact things such as the amount you need to pay as an initial deposit, to any tax deductions you can claim.
Here’s a brief summary of the key differences between the various loan and lease options:
Hire Purchase: We initially own the Audi and you buy it progressively through your repayments. We will register a security against the vehicle you finance with us. As soon as you’ve made your balloon payment, you will own your vehicle outright and we will remove any encumbrances.
Chattel Mortgage: You buy your new Audi and use a loan from us. We take out a mortgage over the vehicle and register a security interest. When you have paid off the loan, we will remove the security and the Audi is yours outright.
Finance Lease: We own the Audi and you make lease payments of an agreed amount for an agreed term. We will register a security against the vehicle you finance with us, which will be removed once the contract is finalised.
Novated Lease: We own the Audi and have security on the vehicle while your employer makes lease payments on your behalf as a salary sacrifice from your pre-tax income. These payments are of an agreed amount and for an agreed term, and at the end of the agreement we remove the security.
Visit an Audi dealership and talk to one of our Business Managers, who will explain the various options in detail and help you find which best suits your circumstances. You should also seek advice from your accountant about the tax benefits and implications of each option.
* Please note that this information is general only, you should not rely on it, and you should consult your accountant for specific advice before pursuing any course of action.