It works like a rental agreement, where you lease the vehicle from the finance company for an agreed period of time (usually 4 years).
The financing of the vehicle may be spread over a fixed term with the final payment representing a balloon payment (usually 30% of the value). Legal ownership is transferred to you once final payment is made.
You can set the terms with a fixed interest rate to provide your payment certainty
If you use the car for income producing purposes you may claim the full payment as a tax deduction
Lease rentals are subject to GST but you may claim GST credit if your business is registered for GST
The full cost of maintaining the vehicle is your responsibility
Disclaimer: The above is a generic representation only. It does not constitute financial advice or mortgage structuring advice. It is only to be used as a guide only. Please discuss your financial needs with a financial planner, accountant or your banking representative.
No reliance should be placed on the above information.