FAQs

What’s a SmartLease™?

Our most popular lease, Driveline SmartLease™ combines the inherent benefits of ownership with the associated taxation benefits of leasing. The key to the Driveline SmartLease™ is that it creates absolute flexibility for you and allows for changes in operating conditions over the term.

Suitable for business, sole traders and private buyers, with a deposit that is flexible from as little as one month in advance. The higher your deposit the lower your monthly payments.

How Long? Passenger vehicles from 12 to 45 months. Trade vehicles & Trucks up to 60 months or 75% of the economic life of the vehicle. (ask your friendly Driveline Consultant to clarify)

Can I purchase the vehicle at the residual value?

It depends on the terms of the contract. In some cases you are able to make an offer to purchase the vehicle at the residual value at the end of the contract.

What’s the residual value?

The amount owing at the end of the contract. You are obliged to pay the residual value at the end of the lease term unless other arrangements have been entered into with Driveline.

Is maintenance covered?

We can build in a maintenance contract into your lease. Maintenance contracts are especially suited to large businesses with over 40 cars in their fleet.

Most of our smaller business and private clients choose to maintain their vehicles through their local dealer or mechanic. The benefit is you are paying for the service as you use it rather than up front and paying interest over the term of your contract.

Many vehicles sold new in New Zealand now have a manufacturer supplied service contract built into the sale of the vehicle.

What if I want to sell or trade up my vehicle?

You can settle your contact. On a Driveline Hire Purchase or SmartLease™ you can elect to settle the contract out at any time and/or trade up your vehicle. You may incur a early settlement fee.

How long does it take to process my application?

In many cases approval only takes one day. In order to be approved for finance you will need to fill in either the personal or company application form. The more information you provide the quicker and easier it will be to get you into your new vehicle. We will need to speak with you personally to ascertain what supporting information may need to be provided in addition to the application form.

Can I finance the fit-out of my vehicle?

Yes. We can include fit out costs, sign writing, security systems, insurance, warranties and maintenance plans into one easy monthly payment.

Can I lease used vehicles?

Yes. In many cases you can get a much higher specification vehicle by leasing used and Driveline also has access to 100’s of ex lease vehicles. Leasing a used vehicle can reduce your monthly outgoings and can be up to 100% tax deductible. It also assists with reducing the FBT costs associated with supplying work related vehicles to employees.

We can help you find the vehicle of your choice and negotiate the purchase on your behalf. We also have a wide range of used vehicle for sale on behalf of our current clients. Many of these have customised fit outs particularly suited to small business uses.

Does Leasing give me a tax advantage?

Yes – you can make significant savings by leasing your vehicle. One of the main benefits of leasing your car is the tax advantages you can achieve. Outlined below are the main tax advantages of our most popular products.

Driveline SmartLease™: SmartLease™ is up to 100% tax deductible as an operating expense and you claim the GST content of your monthly payments.

Driveline Hire Purchase: Hire Purchase is treated the same as ownership. You claim the GST content of the purchase price up front and claim the interest content and depreciation.

Driveline Finance Lease: Finance Lease is treated the same as a Hire Purchase. You claim the GST content of the purchase price up front and claim the interest content and depreciation.

Each individual and business is different. We recommend all our clients talk to their accountant or a tax expert. We can provide the technical information they require regarding all our finance and lease products.

Why should I lease rather than own?

You can save money.

• Save your money for more productive uses.
• Reduce your overall vehicle running costs.
• Take advantage of Driveline’s purchasing power.

Do I get tax rebates?

Yes – you can make significant savings by leasing your vehicle.

See the above question, “Does leasing give me a tax advantage?”, for the main tax advantages of our most popular products.

Do I have to pay FBT?

Yes, however you can make savings on FBT by leasing or financing your vehicle.

FBT is calculated on the purchase price of the vehicle. You can save by taking advantage of Driveline’s purchasing power. Leasing used vehicles can also save your FBT due to the lower purchase price.

There have been some new rules and regulations applied to the FBT Regime which came into force on 1st April 2006. Please phone either your Accountant or a Driveline consultant to discuss how these may effect your business.