General Product Information

Term of loan
This is the length of time your loan will run over and is what the rate is calculated over. It is usually between 12 months and 72 months. This will need to be assessed and approved by the lender as the term is decided by the type and usage of goods. Most contracts are for a fixed term only.

Balloon/Residual
This is the amount payable at the end of the Commercial Hire Purchase or Finance Lease term. This balloon or residual needs to be approved by our lenders but varies generally from nil to 50% depending on goods, usage and the term of loan. Residuals are also regulated by taxation guidelines.

Repayments
Monthly repayments are made up of principal & interest payments and are usually paid in advance. Payments in arrears can be structured on a Commercial Hire Purchase facility.

Interest Rates
Leasing rates are formulated using Commercial Bank Bills/Swap rates and are not generally affected when there is a Reserve Bank rate movement. Leasing rates are always fixed. Rates can decrease or increase as market competition dictates.

GST on contracts
When purchasing equipment or a vehicle for business purpose. GST can be financed or paid up front. If financed over the term, GST may be claimed quarterly as an input tax credit, or it may be claimed in total in the following quarter. This will be subject to the finance type. Please visit the ATO at www.ato.gov.au for further information on the GST and any other taxation issues.

Suppliers
You can purchase vehicles and equipment from anywhere in Australia. Motor vehicle dealers must have a dealer number
Equipment suppliers must be a registered supplier
Private Sales - Individuals or company

Private Sale for Motor Vehicles
We are able to arrange finance for clients purchasing a vehicle from a private individual (not from a motor dealer).Private sale transactions are generally more complex than purchasing through a dealer because we are limited to the lenders that will consider this type of transaction. Various conditions include the paperwork that the vendor has to complete and consider, the Statutory Declaration the vendor is required to sign, the documents which usually needs to be witnessed by a Justice of the Peace, and the vehicle inspection by an independent third party.

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Disclaimer: Multilease has made every effort to ensure that the material contained on this page is factually correct as at 26th March 2010. However, Multilease does not purport to provide taxation or legal advice and recommends that you consult your financial or taxation adviser for specific advice suited to your own circumstances. Multilease shall not be liable for loss or damage sustained by person acting in reliance of this material.