Vehicle finance

Presto Finance can arrange finance for cars, boats, motorbikes, jet skis and other registrable items.The most common form of financing is through a secured loan. The asset purchased is used by the lender as security for the loan often allowing a lower interest rate in return. Secured loans (consumer mortgages) are designed for people purchasing for private use. Presto Finance can arrange finance for consumer car loans and commercial car loans. Our products include:

  • Chattel mortgage*
  • Hire purchase
  • Novated lease
  • Consumer car loans

Leasing, hire purchase and chattel mortgage loans are available for vehicles used for at least 50% business needs.At Presto Finance we make sure the client application meets all lending criteria to provide the best chance of securing approval.

Chattel mortgage and hire purchase

Chattel mortgage

Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing a new vehicle. It is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new vehicle or upgrading an existing vehicle.

Hire Purchase

Commercial hire purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit individual circumstances.


Under both a chattel mortgage and commercial hire purchase agreement, the goods and services tax (GST) is contained in the purchase price of the vehicle but does not apply to the monthly repayment or balloon (final instalment) on the contract.

Normally, those individual business customers who are registered for GST purposes and enter into a commercial hire purchase agreement will apply Input tax credits (ITCs) to claim back some or all of the GST (up to a maximum amount of $5,183) contained in the price of the motor vehicle.

Chattel mortgage is well suited to those individual business customers who account on a cash basis. They can claim back the GST as soon as they lodge their next business activity statement (BAS).

Vehicle Lease

A novated lease is a three way agreement between the employer, employee and the lender.

The employer, employee and financier sign a novation agreement whereby the employer agrees to take on the employee's obligations under the lease. Under this arrangement, the employer makes the monthly lease payments on behalf of the employee. Should the employee leave his or her employment for any reason, the novation agreement ceases and the obligations assumed by the employer revert to the employee as the registration is in the employee's name. The choice of vehicle remains with the employee ensuring a vehicle to fully meet their needs.

The employer deducts a portion of the vehicle financing and running costs from the employee's pre tax income reducing the employee's taxable income and the amount of tax payable. There is no need for the employee to do anything on their tax returns as the employer and lender attend to this.

If a vehicle is purchased using another form of finance, 100% of the costs will be taken from after tax income providing no tax benefit at all.

With the option of a fully maintained lease, vehicle running costs such as maintenance, registration, insurance costs and projected fuel can also be included in regular salary deductions.

Presto Finance can also assist with finding the right vehicle as well as offering fleet discounts on the purchase price and running costs.

Car loans

A car loan is suitable when the vehicle is used wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time. The motor vehicle is the only security needed, although in some circumstances a guarantee may also be required.

The loan term and balloon payment can be tailored to suit individual circumstances.

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