Time to Buy New Business Vehicles? Comparing Vehicle Finance Rates and Tax Benefits
With the release of January’s top-selling vehicles, the possibility of more rate rises and the approaching cut-off for temporary full expensing now could be the ideal time to buy new business vehicles. This an opportune time to compare vehicle finance rates and tax benefits on vehicles for use in a business.
A range of vehicle types is purchased by businesses including cab chassis utes, medium to large plus SUVs, medium and large passenger cars for reps and luxury models for corporate executives. If the vehicle purchase meets ATO criteria as an eligible business asset, then it would be eligible for business vehicle finance.
The motor vehicle finance market is extensive, making comparisons of interest rates a time-consuming proposition. To easily compare vehicle finance rates and products for over 60 lenders on best-selling utes, vans, SUVs and company cars, buyers can contact Jade Car Loans. We have accreditation with all the leading lenders and save buyers the time and hassle of covering the market themselves.
Best Selling Work Horses to Check Out
For those across the Ranger-HiLux rivalry or just a motoring enthusiast that likes to know which models are popular with buyers, you’ll already know that Ranger topped the models list for January. Hilux was second. But also in the top 10 were a number of other vehicles suited to business purposes. The Tesla Model 3, third best seller for January, may be an ideal executive vehicle while the Isuzu D-Max in seventh is another ute to include on the test-drive list.
Breaking the ute sales into 4x4s under $100k and 4x2s, the top 3 were Ranger, HiLux, D-Max and HiLux, Ranger, D-Max, respectively. Looking at over the $100k price tag, the top 3 best sellers were Ram Trucks 1500, Chevrolet Silverado 1500 and Chevrolet HD.
Operators looking to upgrade their van make like to consider, under 2.5t – VW Caddy, Peugeot Partner or Renault Kangoo. In the 2.5 to 3.5t category, HiAce, Staria Load and Ford Transit Custom were the three top sellers.
SUVs have become the go-to vehicles for both private and business buyers. They can make great vehicles for reps, replacing the traditional station wagon. The range of models on the market is extensive. We’ve honed in on the medium and large categories as especially suited for business purposes.
January’s top three best sellers:-
- Medium SUVs under $60k – Mazda CX-5, Toyota RAV4, Mitsubishi Outlander
- Medium SUVs over $50k – Tesla Model Y, BMW X3, Mercedes Benz GLC
- Large SUVs under $70K – Ford Everest, Toyota Prado, Kia Sorento
- Large SUVs over $70k – Mercedes GLE, BMW X5, Audi Q7
For operators in rural areas, in agricultural and building sectors, the Upper Large SUVs under $120K may be of interest. The best sellers were LandCruiser, Patrol and Land Rover Discovery.
Best Selling Corporate-Style Passenger Cars
The trend in recent years has been for SUVs over traditional passenger car body types. But the January sales figures showed an uptick in this category. Passenger cars are still a vehicle of choice for business executives.
Best-selling models to consider include:-
- Medium sized: Tesla Model 3, Mercedes C Class, Polestar 2
- Large cars under $70k: Kia Stinger, Skoda Superb, Citroen CS X
- Large cars over $70K: Audi E-tron GT, BMW 5 Series, Mercedes-Benz EQE.
- Upper large category under $100k: Chrysler 300
- Upper large cars over $100k: BMW 7 Series/i7, Mercedes-Benz S-Class, Porsche Panamera
This category of vehicle may also be suitable for executives looking to reduce taxable income through an arrangement with their employer to provide a car for which they sacrifice salary. Speak with us about to compare vehicle finance for Novated Lease with Salary Sacrificing.
Compare Vehicle Finance
The same business vehicle finance products are available for various types of vehicles, including utes, vans, SUVs, passenger cars, and EVs. These finance options encompass:
- Vehicle Leasing
- Chattel Mortgage
- Commercial Hire Purchase
- Novated Car Lease with Salary Sacrificing
When comparing vehicle finance options in terms of suitability for a business, it is essential to consider factors such as accounting methods, tax approaches, balance sheet strategies, and other accounting measures.
In terms of tax deductions, all business finance products provide tax-deductible elements. For Leasing, the monthly lease payment is deemed a business expense and is fully deductible. In the case of Chattel Mortgage, the interest is deductible, and the vehicle can be depreciated as a tax deduction following the ATO rulings. Until 30 June 2023, eligible businesses may utilise temporary full expensing to realise tax benefits on depreciable eligible assets, such as motor vehicles.
Comparing Vehicle Finance Rates
At Jade Car Loans, we take the hassle out of comparing rates for our customers by working hard to secure the cheapest rates applicable for the business applicant. With the RBA Board's remarks suggesting that lending rates may increase in the coming months due to further cash rate hikes, it's crucial to act promptly when making vehicle purchases.
Whether you're looking for used car finance Brisbane, a car loan for business purposes, a personal loan on a car, or simply want to utilise a car business loan calculator payment tool, we're here to assist you. Reach out to us to discuss securing the most affordable finance at the best possible rates for your vehicle purchase, and we'll guide you through the process while keeping your financial objectives in mind.
Contact Jade Car Loans 1300 000 003 for compare vehicle finance for new business utes, vans, SUVs and passenger cars.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.