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Operating Lease Car Loans

Craig Costello

Car Loans & Leases



1300 829 666

Our Best Car Loan Rate



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Operating Lease Car Loans

Sometimes making a significant purchase, such as a new car can be a daunting prospect, considering the money and commitment that’s involved.

Operative leases are just one of the many finance options Finance Monster can search for in helping you to obtain that new smooth ride! If you’re still a little confused and are wondering “What is an operating lease?” then read on!!


What is an Operating Lease?

For those borrowers out there wanting to be driving away in the latest car, but not wanting the long term commitment of owning a car, then a vehicle operating lease may be the option for you. Simply put, it is hiring a vehicle for a set period of time and paying a monthly rental fee. So, the financing company (which could be a bank or the car manufacturer) owns the vehicle and provides you with the exclusive use of it in return for lease payments. A lease can run anywhere from 6 months through to 5 years depending on the operating lease contract, and at the expiry of the operating lease contract you return the car (in good condition) to your financier or car dealer.

Depending on the type of operational lease, you may have the option of buying the car once the lease expires by making a lump sum payment, known as a ‘residual’. This makes it a similar situation to a ‘hire purchase’ car loan, in that you could gain ownership at the end of the lease. Finance Monster can help you find the most competitive rates on the market for operating leases and assist in making a decision to suit your circumstances.


What are Operating Leases for Companies and how do they work?

Operating leases can work for a variety of individual and business scenarios. For companies it does allow flexibility in that as their business needs evolve they have the room to add (or subtract) to their fleet if they use operating leases. If they were to buy the cars upfront, and in turn gain ownership of them, then it means having to sell the cars or fork out bigger sums and capital which could have be invested elsewhere if they had used an operating lease.


Simply enter your details below
and we'll be in touch.




1300 829 666

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Are there many operating lease liabilities?

Because an operating lease is accounted for as a ‘rental’ expense, in what is known as “off balance sheet financing” there are actually tax advantages that come from this kind of financial arrangement. This means that the vehicle operating lease will not be recorded as an asset or a liability on the lessee’s balance sheet giving rise to tax incentives. In short, there aren’t any recorded liabilities associated with an operative lease meaning all payments are 100% tax deductible! Great!

We hope this is starting to clarify that question, “What is an Operating Lease!?”, buf if not, please do give us a call and we will be happy to explain any questions you may have about operating leases, and operating lease liabilities!!


Are there different types of Operating Leases?

There are three different leasing options available to borrowers that can be tailored to you or your business situation.


Fully Maintained Operating Lease – Your monthly lease rental includes all scheduled servicing and maintenance costs, such as repairs, registration renewal, tyres and accident management.

Novated Lease – This is a popular way of including a car as part of your salary package by allowing you, not your employer, to take out the lease. The lease is paid with the pre-taxed salary, and hence being a great option for salaried employees. Head over to Finance Monsters ‘Novated Lease Car Loans’ page for further information.

Finance Lease – A Finance Lease offers much the same benefits and features as an operating lease. However, at the end of the lease period you can purchase the vehicle for the agreed residual value, as set out in the lease contract. For more information on Finance Leases and how to they may work for you, check out Finance Monster’s ‘Lease Car Loans’ page.

Every borrowers situation is different and it’s always best to give Finance Monster a call if anything is unclear to you. We want to make sure you are fully informed, and know what’s meant when someone says “What is operating leases!?”!


What are the major benefits of having an Operating Lease?

There are many benefits to an operating lease for both individuals and companies:

  • No deposit vehicle finance or capital outlay – meaning you have more money in your pocket!
  • It’s simple and easy with one monthly invoice and fixed repayments so you can produce accurate budgeting.
  • You can return the car at the expiry of the operating lease contract and select a new model allowing you to be cruising around in a new vehicle every few years without the responsibility of selling the old car!
  • Payments are 100% tax deductible for companies further reducing the amount you pay.


Are there any drawbacks to an Operating Lease?

You won’t get full ownership or control of the asset and your use of the asset will be restricted subject to the terms and conditions in the lease contract. If the car happened to increase in value you won’t gain anything as you have no interest in it, something operating lease companies may not always point out.


How can Finance Monster help with Operating Leases for you or your business?

Finance Monster won’t be leasing any cars out to you or signing any lease agreements, but we do want you to make an informed decision on which operating lease works best for you and your situation. Give Finance Monster a call today if you want a fantastic, friendly and efficient service dedicated to helping you!


And remember…

If you’re still scratching your head wondering “What is operating leasing”!? please give our friendly staff a call today who will be more than happy to explain this type of financial arrangement, among others, and answer any further questions you may have.


Free Tank of Fuel

Here at Finance Monster we’re going to bring you not only fantastic deals and information, but awesome rewards too! That’s right rewards! At Finance Monster we give away a free tank of petrol* with every new car loan entered into from our site that’s over $20K! It’s as easy as that! Call a Finance Monster Broker today to find out more about this reward, and the many ways we can help you in your quest to find a great car loan!


And please, always keep in mind…

With any car loan, additional fees, including a late-payment fee, government charges and other electronic banking fees may also apply. Finance Monster will make sure you are kept fully aware of all the terms and conditions attached to your variable car loan.


Free Finance Monster Tank of Fuel Reward Terms & Conditions
  • Free Tank of Fuel is $75 dollars pre loaded onto a Fuel Card.
  • Free Tank of Fuel is rewarded on Personal Loans or Car Loans over $20,000
  • Fuel Card will be sent to customer after settlement of loan.

Any Questions – Please Call 1300 829 666

*These are our loaning partners for Personal Loans.


Craig Costello
Car Loans & Leases










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