FINANCE At Sydenham Motor Group we are able to offer competitive finance on low or no deposit. Pre-approved no-obligation financing is available for any of the vehicles on our web site, just complete the finance application form below and press submit. We also specialise in all forms of leasing. Have you considered these benefits? LEASING: OPTIONS AND BENEFITS OPERATING LEASE This is the traditional form of leasing, normally written over a 36-month term with the requirement to stipulate anticipated mileage at the commencement and with no right of ownership at the end of lease term. Payments are fully tax deductible. Residual value risk lies with the lease company.Pros and cons: Fixed term contract (Lessee responsible for any shortfall in value if contract terminated early) Ownership remains with Lease company Lease terms can range from 6 to 45 months depending on vehicle and usage Lease payments are payable monthly in advance Additional lease payments can be paid in advance to reduce normal monthly rental No asset recorded on Balance Sheet (improves gearing ratio) Rentals fully tax deductible as a business operating expense (refer to your accountant for advice on personal usage and fringe benefit deductions.) GST is claimed on each monthly rental payment Anticipated mileage must be stipulated at start of lease in order to calculate the likely value of the vehicle at the end of the lease. Excess mileage attracts penalty charges Vehicle must be returned to the lease company at the end of lease (no right of ownership) Cost of repair for damage to the vehicle returned is lessee’s care Maintenance & insurance costs are lessees care (Full maintenance costs can be included in the monthly rental) FINANCE LEASE Sometimes called Lease to Buy. Normally written over a 46-month term with an option to make an offer to purchase the vehicle from the lease company at the end of the term. No need to stipulate mileage, and no penalty for excess mileage. Residual value risk lies with the lessee.Pros and cons More flexible than an operating lease Negotiated residual value dependant on usage and estimated mileage Lease payments are monthly in advance Additional advance lease payment can be made via use of equity in your trade-in or cash, in order to reduce normal monthly lease payments Asset recorded on Balance Sheet Tax deductible interest and depreciation (may be subject to FBT-refer to your accountant) GST claimed on principal component of each monthly payment (and advance rental) Able to settle contract early if desired Access to any applicable lease company discounts Cost of insurances including payment protection and guaranteed asset protection can be added into monthly lease payments Available on used vehicles up to 5 years of age Maintenance & insurance costs are lessee’s care (Full maintenance costs can be included in the monthly rental) OPTIONS AT END OF TERM (or earlier if required): a. Settle residual. You may offer to purchase vehicle for residual value b. Refinance residual for a further term c. Update to a new model and carry on paying budgeted monthlies BENEFITS OF LEASING VS OWNING: How much sense does it make to tie up your cash in a depreciating asset? Capital should be invested to produce a return – growing a business, property investment, managed funds or even deposited in the bank. For example, $20,000 invested at a nominal rate, say 6%; compounding 1/4ly over three years appreciates to $23,314. Conversely, capital tied up in a vehicle (or any other depreciating asset for that matter) depreciates, according to the IRD, at approximately 20% p.a. e.g. $20,000 becoming $10,240 over a three-year period Therefore, the difference between investing your cash and tying it up in a depreciating asset of $20,000 value is $13,704 over 3 years, (i.e. $4,358 p.a. - $363 per month or $84 per week).Now, wouldn’t it make more sense to put your cash to work, and lease your vehicle? Note: For business purposes, lease payments can be fully deductible as a business operating expense (assuming expenditure incurred in the course of the business deriving it’s gross income - check with your accountant). You can lease a new $20,000 vehicle for approximately $400 per month (including GST), so, which makes more sense, losing $300 - $400 per month value off an owned vehicle, or reducing your tax liability by the same amount and keeping up to date with a new vehicle every three to four years?Normal finance company lending criteria apply. If you would like any further information, please contact -  Lindsay Barr at Sydenham Motor Group on 07 573 7425/0275 956 237 or lindsay@sydmo.co.nz