Find out how car leasing works, the difference between operating and finance leases, tax implications, typical terms, and end-of-lease things you must know.
Car leasing company
Driveline Finance is a car leasing company with access to thousands of new, used and ex-lease cars, trucks, vans, utes, SUVs… you name it, we lease it.
We specialise in car finance options to suit NZ businesses. We operate throughout New Zealand with consultants in Auckland, Hamilton, Tauranga, Hawkes Bay, Palmerston North, Wellington and Christchurch.
Thousands of cars
Through our specific vehicle manufacturer arrangements and a national network of car dealers, we can access thousands of new, used and ex-lease vehicles at any one time. All are available under our SmartLease™ car leasing package… and we pass 100% of our industry discounts on to you.
Fit-outs and optional extras too
We can help with all the optional extras too, from tradesman van custom fit outs to sign writing, tow bars, roof racks, alloy wheels and warranties. We can organise all the accessories and extras for you and even deliver your vehicle anywhere in New Zealand.
Making it easy
Based on the intended operating conditions and expected mileage, we’ll help you choose the best vehicle for your particular needs. We’ll help reduce your running costs and put you into the right car leasing package to maximise your tax advantages.
Simple guide to car leasingTo find out more, download our free Or call us on 0800 275-374 for a chat about how SmartLease™ car leasing can work for your business. |
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The importance of choosing your car leasing option carefully
When searching for the best car leasing option the choices can leave you feeling confused and overwhelmed. This sometimes leads to a situation we see a lot…
Somebody who is in the market for a new vehicle comes to us and gets some initial information. Then they shop around and get talked into what they think is the best car leasing deal elsewhere – only to find out things are not as they seem.
Too good to be true
The Driveline team has helped thousands of clients get kitted out with lease vehicles since we opened our doors for business 17 years ago. In this time, we’ve heard similar stories about people who have taken out traditional fixed-term operating leases that seem too good to be true.
Take this example…
One of our Driveline car leasing specialists recommended an SUV to a business owner looking to lease a couple of vehicles for his staff members.
The SUV recommendation followed a fact-finding mission by our car leasing specialist, who delved into the business requirements and determined SUVs would be the best match for his employees’ needs.
With a tailored solution agreed on, compliance issues met, and terms and conditions presented to the business owner to read over, things were running smoothly.
That was until…
🎣 Lured in
The following weekend the business owner spotted one of the SUVs he was about to lease in the manufacturer’s local dealership. Onto the car yard he went, eager to take a closer look at the vehicle he was about to lease through Driveline.
Sucker punched 🥊
The new car salesman asked him if he was in the market to buy. He explained he was about to buy several SUVs for his sales reps using Driveline’s car leasing.
The car salesman responded: “We can do those kinds of things too.”
A deal was done with the business owner promptly agreeing to lease the SUV through the manufacturer’s local dealership.
While this all appeared straightforward, on closer inspection all was not as it seemed. Let’s look at some of what went wrong with this car leasing deal…
- The terms and conditions of the lease agreement were restrictive. The business owner had signed a completely different type of car leasing agreement to the one offered by Driveline – one that had nowhere near the flexibility he had asked for originally.
- The business owner had signed a car leasing agreement that tied him into a repurchase agreement.
- Drivers of the vehicles were limited to 15,000 km per annum. This was a lot less than Driveline’s estimate of the business’ actual needs of 30,000 km to 40,000 km per year. It was yet another clear sign the car leasing agreement had not been tailored specifically to the needs of the company.
It pays to check the fine print because, while the deal might look like a winner up front, you only have to scratch below the surface to realise the inevitability of significant excess mileage charges at the end of the term.
What happened next? 🤔
The business owner advised Driveline of the car leasing contract he had just entered into. Our car leasing specialist reviewed the terms and conditions for him, which revealed the problems outlined above.
The business owner tried to cancel the agreement but was quickly told by the car dealership that, while it was possible to get out of the agreement, there was a sub-clause which held him liable for all payments.
Smart vehicle leasing
Not all leases are created equal, so it pays to seek independent advice first. At Driveline we’re here to help you understand the process of how car leasing works.
Ending the unfair advantage
With Driveline’s SmartLease™ we developed a tailored car leasing agreement structured to work in your favour, not the manufacturer’s. Yes, they get to sell a car but they don’t get to take unfair advantage of you.
Driveline proudly specialises in a providing a win-win car leasing package. One of our friendly car leasing experts will be happy to help you get a fair deal. Our aim is to do such a great job that you’ll recommend us to your friends and colleagues.
Don’t take our word for it 🌟
The stats don’t lie… after 59 verified customer reviews we are fortunate to enjoy a star rating of 4.7 out of 5.
Many of those customers have used us multiple times to get new vehicles for their business. Our high levels of repeat business and high customers satisfaction score speaks volumes.
Getting a good deal 👍
Be confident you are getting a good deal. We have over 100 years’ combined experience in the industry and we’re independent as we’re not tied to any car manufacturer. Our number one priority is ensuring you have the best car leasing solution.
Do what you do best and let others fill in the gaps
Your energy is best spent working in your business and making a difference, not running around car yards. Our relationships in the automotive industry mean we can get your vehicle ordered, fitted out and delivered to you quick and easy.
Whether you’re looking for a small runaround town car or a top-of-the-line ute with all the bells and whistles, we’ll get you the perfect match.
💰 Did we mention the discounts?
As a car leasing company we also have the benefit of excellent discounts from manufacturers. Unlike most, we pass these discounts on to you in the lease price.
Simple guide to car leasingTo find out more, download our free Or call us on 0800 275-374 to discuss how SmartLease™ car leasing can work for your business. |
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Operating lease vs finance lease
The generally accepted rules to classify as an operating lease are that:
- The term shall not exceed 75% of the economic life of the vehicle as set down by the IRD depreciation schedules.
- There shall be no right of ownership conferred to the lessee.
A lease will classify as a finance lease when the term exceeds the economic life rule and/or the lease agreement grants the lessee the right to own the vehicle at the end of the lease at an agreed value.
If car leasing doesn’t work for your business, we also offer traditional car financing (hire purchase).
Please do not hesitate to contact a Driveline consultant for more information on how the various types of lease work and how they could best be of advantage to your business.
N.B. We recommend that you seek independent accounting advice with respect to the various lease types and the methods of accounting for these.
SmartLease™ car leasing option
75% of our clients prefer our SmartLease™ car leasing package because it is one of the most flexible financing tools in the market. The SmartLease™ car leasing option is available for business use clients only and delivers cashflow and tax advantages over traditional hire purchase. Plus there are no ‘excess kilometre’ or ‘fair wear and tear’ charges at the end of the leasing term, as is common with other car leasing companies’ operating leases.
SmartLease™ car leasing is also available on our stock of late model ex-lease cars and second hand cars, trucks, vans, utes and SUVs.
Benefits
- Absolute flexibility. SmartLease™ car leasing creates absolute flexibility for you and allows for changes in operating conditions over the term.
- Simple for tax accounting purposes. Payments are up to 100% tax deductible as an operating expense.
- Save on purchase price. Driveline enjoys substantial dealer discounts on new vehicles. We pass 100% of those discounts on to you. Compare our prices… you’ll be surprised.
- Reduced early termination charges. Your liability under most operating leases is the total of any outstanding lease payments yet to be made. Not so with Smartlease™ car leasing! We work on the same basis as traditional funding packages.
- No kilometre restrictions are set and no ‘excess kilometre’ charges. Smartlease™ is different. If you’ve previously leased a vehicles, clocked up more mileage than you anticipated and been stung with a whopping bill by one of our competitors at the end of a lease, you’ll know exactly what we mean.
- No ‘fair wear and tear charges’ at the end of term. Once again SmartLease™ is different with no ‘refurbishment’ charges at the end of the lease.
- You are not tied to a service contract. Get the car serviced by your regular provider at your convenience which saves you money long-term.
- New or used cars. SmartLease™ car leasing is available on both new and used cars.
- Free-up capital. SmartLease™ car leasing allows you to enjoy the benefits of ownership, while freeing up valuable capital to use for more productive purposes.
Deposit: Flexible, from as little as one month in advance.
Terms: Up to 75% of the economic life of the vehicle.
(Passenger cars up to 45 months. Trade vehicles and trucks up to 60 months.)
Simple guide to car leasingTo find out more, download our free Or call us now on 0800 275-374 to discuss SmartLease™ car leasing for your business. |
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