Need Fleet Car Financing? Here Are Your Best Options


When considering if you need fleet financing for your business, identifying and evaluating all the best options is essential, especially if saving money is your goal. At the same time, by identifying the best provider, you will also be supported by advisory services to ensure you're selecting the right vehicles for your business.

Toyota Fleet Management provides a choice of fleet financing options, enabling you to meet your company’s fleet requirements whilst maintaining your cash flow and supporting cost saving objectives. By identifying the most suitable finance plan to suit your needs, running a fleet can be seen as an asset to your business. In this article, we are going to take a look at fleet car financing and leasing options you should consider.

Fleet Financing – Definition

As a business owner of an SME or larger organisation, there may come a time when you realise that your group of company vehicles needs to grow. When your business owns a collection of vehicles, this is referred to as a fleet. Most fleet vehicles consist of lease, rental cars and or company cars. Running a fleet of vehicles may have been manageable until now but with the increase of vehicles being added to your fleet– thus more admin, paperwork and maintenance - the need for a fleet management service becomes vital. At Toyota Fleet Management (TFM) we don’t only look after your company vehicles but can provide a good choice of funding options at the same time.

Our range of fleet financing options can be customised to suit your needs and may be structured to help maximise cash flow. We aim to provide business owners with flexibility and great rates for the life of your company vehicles. Also, because we understand that all businesses are different, TFM’s range of fleet financing options has been carefully tailored to provide the perfect finance option, whether you opt for a Chattel Mortgage, Complete Lease, Novated Leasing, Finance Lease or Operating Lease.

Read on to find out more about our full range of funding options.

TFM’s Fleet Car Financing & Leasing Options

For SMEs, the two most popular products within our range of funding options are the Chattel Mortgage and Complete Lease.

Chattel Mortgage

When funding is provided via a Chattel Mortgage, the legal title for the vehicle lies with the customer. You begin by choosing the size of deposit, length of loan term (ranging from 12 – 60 months) and the annual usage in kilometres. TFM will then provide you with a single monthly invoice that includes running costs and the option to add on roadside assistance. As far as tax is concerned, GST, depreciation and interest charges may be claimed back. It doesn’t matter whether you finance one vehicle or many, the Chattel Mortgage works in the same way. With access to informative fleet reports, you are always fully in control. We take care of the vehicle management so you save valuable time and resources.

Complete Lease

As the name implies, the Complete Lease brings all of the costs together connected with a vehicle lease. This includes servicing, registration, tyres and even maintenance. You choose if you want to add on TFM roadside assistance, fuel card or insurance. Once you have set the term of the lease (between 12 and 60 months) and annual kilometre usage, all you have to do is make one monthly payment. You don’t need a deposit and always know just how much you will pay each month. Extensive fleet reporting is included, enabling you to track vehicle usage whether your fleet comprises just one vehicle or more.

Should neither of these popular options be suitable for you, we also offer alternative financing options in the form of Novated Leasing, a straight Finance Lease or an Operating Lease:

Novated Leasing

Novated leasing is a good option to help attract and retain employees. Novated leasing is simply a finance arrangement where you (the employer) pay for the vehicle lease and running costs out of the employees salary package, through a combination of pre-tax and post-tax deductions. This is an attractive ‘salary package’ where you want to provide an employee with a company car. The cost of the car finance and running costs is deducted at source from their salary. It’s a convenient and tax effective option when you want to reward an employee with the use of a car in a tax efficient way. Admin is simple as the employer receives one monthly invoice. Should the employee decide to move on, they take the car with them, the Novated Lease terminates and they take on the financial responsibility.

Finance Lease

Should you choose this option, the vehicle owner (TFM) buys the vehicle and then rents it to your company. At the end of the lease, you will have an option to buy. Business owners like the fact that they do not have to face a large upfront cost which they would if they bought the vehicle outright at the start. Whilst the lessor holds ownership, the company is responsible for the vehicle just as if they owned it. Because your monthly cost remains the same, budgeting is easy. The lease rental payment is usually tax deductible, dealt with as a lease payment plus interest. When the lease ends, you can purchase the vehicle, extend the lease or take out another Finance Lease for a new vehicle.

Operating Lease

An Operating Lease is more akin to a vehicle rental agreement. The term is generally shorter which makes it very suitable for business owners who wish to change vehicles on a regular basis. In fact, if you are looking to upgrade whilst using an Operating Lease, this can often be accommodated. The key difference between an Operating Lease and a Finance Lease is that you cannot buy the vehicle during the rental period:

  • Monthly payments will be for the same pre-agreed amount over the selected term.

  • Unlike the Finance Lease, the monthly payments made will not equal the vehicle value, so you are not ‘purchasing’ it.

  • Ownership and risk remains with the lessor as the company generally returns the vehicle to them when it ends.

  • Because the vehicle will still have a residual value at this point, this is taken into account as it will affect the monthly payments.

  • Operating Leases vary but often vehicle maintenance can be included.

  • At the end of the lease, you choose whether you wish to hand the vehicle back or take out a new Operating Lease for another vehicle.

  • Although ownership remains with the lessor, your company will need to list the Operating Lease on its Balance Sheet.

Financing Resources Supporting Businesses

When you take advantage of the fleet financing and leasing options available from TFM, you are not only tapping into a great funding option but also a professional fleet management service. Whilst TFM manages your business fleet, you can focus on the important elements of running your company. Your time is incredibly valuable and by not having to deal with the daily running and management of your fleet, your business can reap the rewards.

Whether you are new to running a fleet or looking at expanding your current range of vehicles, TFM makes available to businesses a whole range of top fleet financing resources as well as advisory services. Running a fleet can impact upon profitability if not done in the right way, which is why it pays to talk to the experts. In doing so, you may be able to save money due to the availability and access to better finance deals with lower interest rates as well as overall improvement gained in the efficiency of your fleet management. No longer will the stresses of managing a fleet remain with you alone.

By taking the time to speak to the experts at TFM, they can get to know your business and recommend the most suitable ways of financing or leasing your fleet. Not only will they help manage your business fleet efficiently, but they will work hard to keep costs as low as is practically possible. Check out the full range of fleet financing resources and advisory services available from TFM to boost your business efficiency. At the same time, you will be in a strong position when it comes to making informed decisions about your business fleet financing and leasing options.

Selecting the right fleet funding option is crucial for the health of your business. Should you require further information or if you would like to know more about TFM’s small business fleet services, do get in touch with Toyota Fleet Management Services today. We can be contacted on: 1300 888 870.


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Disclaimer 

The information provided by Toyota Fleet Management, a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536, is of a general nature and for your information only. Nothing in this article constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any product or service described, we recommend that you seek independent professional advice such as from your accountant, taxation or financial adviser or lawyer, who can advise you about your personal circumstances and what would be suitable for you.

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