Fleet Finance Options

When it comes to funding your fleet vehicles, no two businesses are the same. That’s why Toyota Fleet Management (TFM) offers a wide range of fleet finance options to suit your needs. Whether you’re thinking about fleet funding via an operating lease, finance lease, novated lease or an additional option, get the most suitable financing for you and your business car leasing.

 

 

Benefits of partnering with Toyota Fleet 

Management

Reassurance

Full backing from the Toyota brand offers you the stability you need, along with the opportunity to leverage TFM's buying power.

Pricing

TFM works with you to determine and achieve your business objectives. We offer transparent rates, fees and competitive pricing.

Funding

With an AA- Standard and Poor's credit rating for medium term notes, issued by Toyota Finance Australia, you get peace of mind with direct funding that provides a lower cost of funds.

Risk mitigation

Mitigate risk with SOX accreditation for access to fully trained specialists, including an internal risk department to protect your investment. Avoid extra costs with a lower risk on residual values and vehicle running costs.

Operating Lease

An operating lease is an asset funding option for businesses that don’t want to take on the risk of selling the vehicle at the end of the lease. You can choose any or all of our fleet management services to form your total monthly payment.

With an operating lease, TFM owns the vehicle and leases the vehicle to you with your choice of term and kilometre usage. At the end of the term the vehicle is simply handed back, avoiding the risks associated with ownership, as there is no residual value to pay.

This option includes 100% financing at a known monthly cost so there’s no capital outlay.

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Finance Lease

A finance lease transfers the risk of ownership to you without transferring legal ownership. You choose a residual value within the ATO’s specified range to suit you.

A finance lease gives you 100% financing at a known monthly cost with no capital outlay. Lease rentals are normally fully tax deductible and treated as lease repayments and interest.

At the end of the lease, you can extend for an additional term, or pay out the lease and then enter into a new lease agreement on another vehicle.

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Term Purchase

A term purchase transfers the risk of ownership to you, and when the final instalment is received, you’ll have full legal ownership. Toyota Fleet Management offers a fixed interest rate and terms between 12 months and 84 months.

You can pay the cost in equal installments or specify a balloon to suit you or your cash flow preferences. The balloon can generally be refinanced at maturity. And you also have the freedom to pay out the vehicle at any time.

A term purchase is the ideal choice if you want to own the vehicle at the end of the repayment term. This option provides up to 100% financing for the GST-inclusive price of the vehicle at a fixed monthly cost. Both the liability and asset are shown on your balance sheet.

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Chattel Mortgage

A chattel mortgage is where the legal ownership lies with the customer. It is quite similar to a traditional mortgage or home loan. A financier takes a mortgage (security interest) over the chattel (goods). No GST applies to interest and term charges. Just like term purchasing, you can claim depreciation and interest for business usage.

As you are paying for the vehicle with monthly payments, the ownership of the vehicle during and at the end of the mortgage period is yours. This means running costs are out of pocket and if you are looking to resale at the end of the mortgage term, it is up to you.

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Sale and Lease Back

A sale and lease back lets you free up capital through the sale of vehicle assets at the written down or market value. The vehicles are then leased back to your business via one of Toyota Fleet Management's (TFM) funding options.

If you’re looking for cash flow, sale and lease back releases capital when you sell vehicle assets to TFM at the written down or market value. The vehicles are leased back to you, immediately freeing up capital for alternative investment.

Each vehicle is assigned a lease term and kilometre allowance tailored to its usage, with the lease expiry falling within your company vehicle replacement policy. You can select a future transaction date beyond which the capital, management and administration of the fleet is outsourced.

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Novated Leasing

Novated Leasing is a finance arrangement where the employees’ lease obligations are transferred or 'novated' to the employer, who makes these payments to TFM for the term of the lease.

The employee's vehicle finance and running costs are taken from their pre- and post-tax salary. If the employee leaves their employment, the novation agreement ceases and all financial liability for the lease reverts to the employee.

TFM offers Novated Finance Lease & Novated Operating Lease options, the subsequent ownership risk can be determined by the employee to best meet their needs.

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Contact a specialist

Whatever your needs, our team of fleet specialists are on-hand and ready to help.

Call us Enquire