With utes continuing their great upward sales trend, could buyers be opting for this versatile vehicle over a passenger car? Ute buyers are certainly not limited to tradespeople or any other specific business category. Could it be that many others are realising what boat and caravan owners and many other business owners have long appreciated - utes are very useful.
Hands down, game over, winners are grinners. You don’t have to be in a work environment to buy a ute but if you are in business and looking for a new vehicle, a ute could be a great choice. A ute can handle the demands of many recreational pursuits and household tasks. Not out of place doing the school run, plenty of space in the cargo area for a massive supermarket shop and so easy to get bikes, balls, sports gear bags and all the other paraphernalia in and out than say from the back of a SUV. For many businesses outside of the building sectors, utes can make a lot of sense. With increased tech and driveability, operating a ute doesn’t necessarily have to feel like you’re driving a truck.
With an eye on affordability and with current low lending rates, buyers are spoilt for choice. The ute market is big and growing with every new model launch and the finance options also provide plenty of options. New on the market, and worth considering is the new Nissan Navara.
Spotlight: Navara
The new Navara Pro 4X is a tough, rugged 4x4 that will handle the toughest terrain. But it’s also stylish and packed with driver assist tech which can be very handy in urban environments. Intelligent emergency braking, blind spot intervention and lane intervention are just some of the technologies that Nissan has included in the latest model.
While the promo material is understandably focused on the off road and towing capabilities of the Navara, the interior comforts and driver assists should not be underrated, in our opinion. Especially for owners that intend to spend more time on the blacktop and to/from city-based commitments than tackling the wild terrain. Features include a quieter cabin, advanced connectivity and with the dual cab, very comfortable rear seats.
The Navara also comes in a single cab 2WD along with several other variants which cover SL, ST, STX and the Pro 4X models. So plenty of choices for many business operators to find should the Navara suit their requirements. And Jade has the full range of finance options to suit all Nissan Navara business buyers.
Business Finance Options
When it comes to selecting the Business Car finance option (loan type) for your Navara purchase, there are several factors to consider. Business finance products are structured to comply with ATO regulations while meeting accounting guidelines and individual business finance objectives. For starters, it depends on what accounting method is used to prepare your business accounts and income tax return – cash or accruals.
Then there is the issue of whether you do or don’t prefer to have the vehicle entered on your business balance sheet as an asset/liability. That relates to ownership of the vehicle during the loan term which varies with different loan products. With Leasing, the vehicle ownership is retained by the lender and with Sole trader car loan the ownership is with the borrower from settlement of the finance contract.
The ownership and balance sheet then flow into how the GST is handled. While you don’t have to be registered for GST to be eligible for business finance, if you are, then it needs to be paid and claimed back as input credits on your BAS statement. With Leasing GST is applied to the repayments and with Chattel Mortgage the entire GST on the vehicle price is claimed on the next BAS after purchase. GST doesn’t apply to the interest portion of any loan type.
Then there is tax deductibility. All business finance products have a tax deductible element but at what time of the financial year that can be realised and with what elements of the actual loan, varies with the type of loan. With Business Vehicle Leasing, the monthly lease payments are considered an operating expense and are tax deductible.
With Chattel Mortgage it is quite a different scenario. Only the interest on the repayments is tax deductible. The main tax benefit comes when the vehicle is depreciated as an asset/liability in the business accounts at EOFY when the income tax return is prepared.
Enter Instant Asset Write-Off and temporary full expensing. These much-promoted accelerated asset depreciation measures currently available, relate to depreciation and hence Chattel Mortgage is seen as the most suitable finance facility for this purpose.
But wait, then there are the variations in interest rates across the different loan products. It may appear a ‘no-brainer’ to select the cheapest business car finance rates finance products which is typically Chattel Mortgage and CHP. But the benefits of all finance products in their entirety should be considered against the individual business goals. Enter your accountant to give you advice on which to select.
Armed with advice from your accountant, it’s simply a matter of contacting Jade Car Loans and we can take it from there. Brief one of our consultants as to which finance product you want- Chattel Mortgage, Leasing, CHP – and we will proceed to source, structure and secure you the cheapest loan for a Nissan Navara.
Start arranging your Nissan Navara finance with a call to Jade Car Loans at 1300 000 003
DISCLAIMER: THE INFORMATION IN THIS ARTICLE IS PREPARED SOLELY FOR INFORMATION PURPOSES AND IS NOT INTENDED AS FINANCIAL ADVICE OR AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING ADVICE SHOULD CONSULT A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATIONS OF PRODUCTS, POLICIES AND INFORMATION OR ERRORS IN THE CONTENT AS REFERRED FROM OTHER SOURCES.
