As part of our commitment to finding you a better deal on car finance,
we at “Drive Easy” look beyond just a low interest rate by considering flexibility and all other costs in your vehicle funding.
This is the difference between a good deal and a great drive, the Drive Easy way!

As part of our commitment to finding you a better deal on car finance, we at “Drive Easy” look beyond just a low interest rate by considering flexibility and all other costs in your vehicle funding.
This is the difference between a good deal and a great drive, the Drive Easy way!

DRIVE EASY

Drive Easy, part of the Capital Easy Group has been built on the pre-existing capabilities of its Managing Director James Falzon and staff who have devoted their respective careers to what is a very specialized field of expertise. As a dealer / manufacturer – vendor independent with over 20 years of experience in the vehicle funding market, Drive Easy has developed an enviable list of clients throughout Australia and across a range of industries and Government. The benefit for you is the experience in doing It right! – and not simply a means of just buying a car. Our rates and conditions are the best in the business – leveraging our Government efforts.

James (Founder & Managing Director)

James has arguably the most extensive pedigree available in specialist IT leasing and asset services to Government, Business or Industry. He has spent much of his 35-year career within the insurance and finance discipline. James has worked as a specialist State Manager for equipment financier (Elderslie) for over six years and was then appointed to its Board of Directors.

James has provided total master leasing services for Australian Government: Department of Foreign Affairs and Trade, Information Technology, Communications and the Arts, Health, Treasury, Veterans’ Affairs, Defence and numerous Australian government agencies since 1996.

James has highly regarded client management and negotiation skills. He is also an innovative thinker, a natural problem solver and prides himself on exceeding client expectations in all of his customer dealings. He is an excellent communicator and is actively involved in all major accounts and the community generally. James and his family live locally in the ACT.

James is a registered Stock and Station Real-estate Auctioneer (not practicing), and is a member of the Australian Valuers Institute.

DRIVE EASY SERVICES

As part of our commitment to finding you a better deal on car finance, we at Drive Easy look beyond just a low interest rate by considering flexibility and all other costs in your vehicle funding. This is the difference between a good deal great drive, the Drive Easy way!

You wouldn’t ask a Doctor to repair a leaky water pipe – so too, you should always look to specialist vehicle funding advice – over simply relying on the Dealership’ convenience to ensure you get the best deal you can.

Let ABC’s The Checkout explain more.
Jump to 5:50 to learn about how Dealerships deal with financing a vehicle.

At Drive Easy we also believe you shouldn’t be paying high fees for paying off your vehicle sooner should your circumstances change or if you simply want to upgrade your vehicle before the term duration. At Drive Easy your finance consultant is a real person – No pre-recorded messages, No vehicle badge bias; just good old fashioned service for the duration of the vehicle loan – not just until you drive off the showroom floor. For more information about our NO EARLY EXIT FEES options, or to enjoy the flexibility of not being locked into a restrictive contracts or indeed the Drive Easy difference – Please call 1300 136 052

Drive Easy provides fast business vehicle finance without putting a strain on your cash flow. We provide funding for both new and used vehicles from either a local/ interstate dealer or private sale.

We offer several different types of finance for motor vehicles:

A Car Lease or Finance Lease is owned by the finance company until the residual payment is made, then ownership is transferred. The residual value is mandatory on leases. Lease payments are 100% tax deductible. Leasing is ‘On Balance Sheet Borrowing’ with payments and interest listed as a liability and the worth of the goods as an asset. A lease is classed as capital expenditure on a business’ balance sheet and must be accounted for in the “Capital V’s Debt” account, as it is an investment.

A Car Lease (Finance Lease) for a car or any other passenger vehicle has a number of key benefits:


  • Wide variety of residual value (balloon value) options that provide for lower repayment costs (within ATO guidelines).


  • Choice of terms (loan lengths) ranging from 24 to 60 months (two to five years).


  • Tax deductions may be available when the vehicle is used for business purposes.


  • No GST on the purchase of the car, as the GST is claimed back – hence you have a lower repayment as the lease is based on the ex GST purchase price of the vehicle.


  • A Car Lease is secured finance, which allows lower interest rates – the security vests in the vehicle and is not tied to other assets e.g. property.


  • Additionally, a Car Lease through Drive Easy has the follow extra benefits (subject to lender selection):
    • No ongoing fees.
    • Fixed interest rate, so monthly repayments are fixed for the life of the loan.
    • Ability to make advance lease payments for tax or cash-flow purposes.


Chattel Mortgages are commonly used by companies, partnerships and sole trader business to fund the purchase of cars, motor bikes, commercial vehicles and other business equipment with or without a balloon payment on expiry. Legal ownership of the chattel is transferred to the purchaser at the time of purchase, and the security (mortgage) is removed once the loan has been repaid. Under Australian Taxation Office rules, businesses that account for GST on a cash basis are entitled to claim an Input Tax Credit for all of the GST contained in the purchase price of the chattel on their next Business Activity Statement.

A Chattel Mortgage for financing a car or other vehicles has a number of main benefits:


  • Choice of terms (loan lengths) ranging from 24 to 84 months (two to seven years).


  • Wide variety of residual value (balloon value) options, generally ranging from 0% to 60% depending on the type and age of the vehicle.


  • A deposit may optionally be used to reduce the size of the loan.


  • Tax deductions may be available when the vehicle is used for business purposes.


  • A GST Input Tax Credit may be available on the GST paid on the vehicle – when the purchaser is registered for GST.


  • A Chattel Mortgage is secured against the vehicle, which allows lower interest rates.


  • A Chattel Mortgage through Drive Easy has the following extra benefits (subject to lender selection):
    • No ongoing fees.
    • Fixed interest rate, so monthly repayments are fixed for the life of the loan.
    • Repayments can be structured, matching payment to your or your business’ cash flow.


Hire Purchase / Commercial Hire Purchase is a legal obligation between the finance provider and the hirer (the client) where the amount repayable is calculated on a fixed term, with or without a balloon payment at the expiry of the term. The hirer has ownership of the goods at the beginning of the term. When accounting for a hire purchase the asset and liability is disclosed on the balance sheet. The allowable tax deductions are based on depreciating the asset and the interest component of the payment – in most cases.

A Commercial Hire Purchase (CHP) for financing a car or other passenger vehicle has a number of main benefits:


  • Choice of terms (loan lengths) ranging from 24 to 60 months (two to five years).


  • Wide variety of residual value (balloon value) options, generally ranging from 0% to 60% depending on the type and age of the vehicle.


  • A deposit may optionally be used to reduce the size of the loan.


  • Tax deductions may be available when the car is used for business purposes.


  • Input Tax Credits may be available where the purchaser is registered for GST.


  • A Commercial Hire Purchase is secured finance, which allows lower interest rates.


A Commercial Hire Purchase is not generally favored above a Chattel Mortgage on account that GST applies to a Residual payment under a CHP

Under a Chattel Mortgage, tax deductions may be available where the vehicle is used for income producing purposes.

Generally, available tax deductions under a Chattel Mortgage include interest charges on the loan and depreciation on the vehicle up to the Depreciation Limit. Under a Chattel Mortgage, GST is charged on the purchase price of the car or vehicle, however NO GST is charged on the monthly repayments or the balloon (residual) payment. As a significant benefit, customers who are registered for GST on a Cash basis can generally claim the GST contained in the purchase price of the vehicle as an Input Tax Credit on their next BAS. E.g. On a Toyota Hi Lux SR5 dual Cab Ute – that GST Credit is over $5,000.

Novated Lease is designed for staff to maximise their salary package. Suited to businesses that need to offer salary packaged vehicles to their employees, it can help staff maximise their salary package and reduce your company’s costs. If employment ceases during the lease term, the novation is cancelled and the employer’s obligation in respect of making the lease payments ceases and reverts to the employee. There are substantial benefits to both employers and employees.

A Car Loan is a personal finance product where the financier lends the customer funds for the purchase of a vehicle, and secures the loan against that vehicle. A Car Loan is can also be known as a Consumer Loan or a Secured Car Loan.

Chattel Mortgage Car Lease Hire Purchase Car Loan Novated Lease
New & used
Fixed interest rate
Commercial purposes
Fixed repayments
Full ownership at start of contract
Full ownership at end of contract
Deposit allowed
Residual payment available
Residual required
Finance your on-road & registration costs
Tax benefits may apply*
Low initial outlay
Finance your insurance costs

All information regarding Allowable Tax Deductions above is given as General Advice. Independent advice from your Tax Professional should be sought in relevance to your individual circumstances.

ADDITIONAL FACILITIES

Finding a new car and negotiating the right price can often be quite stressful, disheartening and time consuming. So take back your weekend, let us help you buy your next new car. Drive Easy will chase down the price for you, saving you time and money. Through our national dealer network we can help you find the right car at the best possible price. All fleet discounts and rebates are passed on to you in full.

Our transparent pricing structure and unique tendering across wholesale dealerships gives you complete visibility over the whole process. We will even provide you your trade-in and treat it as a separate transaction. Your new car is delivered to your door with a full tank of fuel and genuine floor mats.

Speak to Drive Easy about your new car needs, because they believe buying a new car shouldn’t interrupt brunch. There are absolutely no costs and no obligations.

A vehicle subject to finance must be comprehensively insured at all times. You may choose to arrange your own comprehensive motor vehicle insurance or you can have Drive Easy take care of it for you.

Our comprehensive motor vehicle insurance is specifically tailored for Lease products and includes many additional features and benefits not included in traditional consumer insurance products.

Lease Protection Insurance (LPI) is an optional cover and well worth considering. This product is designed to help cover the financial commitment of a lease in the event of involuntary redundancy, expatriation or accidental death. It is inexpensive and gives you peace of mind.

GAP Insurance is an optional cover which is also well worth considering. This product provides an extra $15,000 cover in the event of total loss where comprehensive motor insurance may leave you out of pocket for the difference between lease payout value and the vehicle’s market value.

Just like LPI cover, this product is inexpensive and gives peace of mind that you will never be out of pocket in event your vehicle is written-off or stolen. GAP even pays the cost of the new comprehensive insurance premium for the replacement vehicle.

At Drive Easy, we are specialists in salary packaging. Salary Packaging is an agreement between you (Business) and an employee, which allows them to sacrifice some of their salary in return for a benefit. Employees can package a range of items, including cars on a novated lease. Plus work related items exempt from FBT, like laptops, mobile phones and lounge memberships.

Salary packaging is a great benefit for employees, as packaging items using their pre-tax salary can help reduce their taxable income and PAYG tax payable. With administration direct from Drive Easy, you’ll enjoy market-leading service.

Drive Easy can also offer you or your company comprehensive Fleet Management Services that involve:


  • Vehicle disposal


  • Multi Vehicle Registration & CTP renewal Management


  • Infringement management


  • Fuel Card management


  • Roadside assist


  • Accident & claims management


  • Mini-lease/replacement vehicle


  • e-Tag management


  • National repairs, maintenance & tyres


FAQ

At Drive Easy we provide the convenience of submitting an application online or alternatively over the phone with a Drive Easy consultant. The application process will ask for some information about you and your business (if applicable), including your personal and contact details, employment and financial situation, your assets & liabilities, the car you wish to buy (if known) and how much you need to borrow. You will also need to provide a few documents along with your application. These may vary depending on your circumstances, but generally include a privacy consent form, proof of identity (drivers licence)– in some instances – proof of income (payslips or financials). Generally speaking if you have been in business for longer than 2 years no financials are required. Subject to receiving the complete information for an assessment – an approval subject to credit reference bureau report could be provided on the spot or upto a few hours.

Arranging finance for the purchase of a vehicle can be a complex task – with research to do, quotes to compare, questions about applications, approvals, timing and more. Many business’ and people approach finance for their new vehicle as an after-thought or as an add on to the dealer purchase. Why because some think the finance process can be intimidating, and because choosing, finding and driving a new vehicle is fun; whilst arranging your finance is not. It’s very important however, because making the wrong choices about which finance you use and how you go about organising it can be both expensive and time consuming.

The important points at this stage of setting out is to find out which finance structure is right for you. What do we mean by finance structure? Well, there are a number of different ways of financing a business use vehicle – including Hire Purchase, Leasing, Chattel Mortgage, Novated Leasing, Secured Car Loans and Personal Loans. Each of these is structured differently from a legal perspective, and each suit different situations. With Drive Easy we can assist in determining what structure is best for your situation. Then you can apply online for vehicle funding in less than 10 minutes using our easy online application form or simply apply over the phone – simply call us on 1300 136 058 to speak to a consultant.

To begin, click this APPLY NOW link.

Once your application is submitted, a funder that best suits your circumstances will assess the information you have provided in order to determine whether if they approve your finance application. Generally, they will look at your capacity to repay the loan, the value of the vehicle, how much asset backing you have, and, if you have had previous finance, how well that loan was conducted. The lender will compare these factors against their internal guidelines, and while each financier has different approval timeframes, most good finance companies can provide a response within a few hours, and sometimes even instantly.

Unlike a home loan, you don’t automatically need to provide a deposit or include your existing vehicle as a trade in.

As a general rule, you may be asked to provide a deposit if you:


  • Don’t have any credit history.


  • Have negative equity on your current vehicle (where you owe more on an existing than it is worth).


  • Have bad credit history.


In many instances such as a Chattel Mortgage your Trade-in could be used as a deposit to reduce the new borrowings and hence repayments. That though may not be the most Tax effective method. With Drive Easy we can assist in determining what structure is best for your situation and if including your Trade in the overall changeover is the best for your circumstances. In some instances we may even be able to provide an independent trade in valuation from one of our National buyers.

A comparison rate, or true rate, is the interest rate plus certain fees and charges related to the finance. Some dealership finance include high upfront application fee’s, monthly account keeping fee’s, direct debit fee’s, non-fixed interest rate, or early termination fee’s that may not have been disclosed as part of the interest rate comparison. A comparison “Interest Rate” can be more useful than simply a standard interest rate when making comparisons.

Whether you’ve set your heart on a new vehicle, or it’s a New Year car deal, or something else entirely, a key aspect to successfully accessing finance is your credit report. There are four major credit reporting agencies operating in Australia. Before funding approval a funder will ask at least one of them for a report on the Business, its Directors or you personally. Given that a credit report can make or break your application it’s a good idea to know what it will say. Thankfully, Australian law allows you full access to whatever information the Credit Agencies hold on you and you don’t need to pay to see it. You’re entitled to one free report from each agency per year. Whilst there may be a very good reason why a Dealership financier has declined your request for finance – don’t despair – simply call us on 1300 136 058 to speak to a consultant. Often it may simply be that dealer “No Interest Promotions” are directed to high net worth organisations, or simply a clarification of your past circumstances. Alternatively a funder whose criteria may take into account minor past credit impairment could be a solution. Whatever that may be – consider an approval process as being a “check measure” to whether you can meet the commitment for the term, and if the deal is in fact a good deal for your circumstances.

Cash reserves are best spent on assets that will provide a positive return. Leases are appropriate ways to tax effectively finance assets when the use of an older vehicle poses a threat to productivity, & smooth cash flow over the term is desired. In many instances the vehicle is not the asset, but what the vehicle can do for the business is. Funding a depreciating Asset makes more sense, as it preserves your business capital for appreciating Capital Investment purposes – like Property or business expansion.

Lease payments are calculated on the price of the equipment exclusive of GST – the GST amount is added to this figure. Businesses that are registered for GST should be able to claim the GST amount as an input tax credit.

Precedent dictates that you will be provided with the first option to purchase the vehicle at its residual value. If you choose to take ownership of the vehicle at the end of a Car Lease (Finance Lease), this is technically treated as the finance company selling the vehicle to you for an amount equal to the Residual Value.

GST will be added to this amount, however business registered for GST will be able to claim an Input Tax Credit credit for any GST paid as part of the purchase. Alternatively you may re-lease the vehicles residual for a further term; Or, return the vehicle and it will be sold by the financier. If the vehicle is surrendered to be sold you may be required to indemnify the financier of any loss between the value attained and the residual value. Any surplus funds from sale may be re-credited to you from the financier.

Starting in FY13, the ATO offers small businesses the ability to claim an upfront tax deduction of $5,000 for any motor vehicle purchased in excess of $6,500 for a taxable purchase.

In addition to this deduction, regular depreciation over time will apply. This is calculated by taking the remainder of the motor vehicle value and depreciating at 15% in the first year and then 30% onwards as per the general small business pool.

For more information please visit the ATO website.

Small businesses with an aggregated annual turnover of less than $10 million will now be eligible to receive an immediate tax deduction on each asset they purchase costing less than $20,000. Assets can be new or old but must be acquired between 7:30pm (AEST) 12 May 2015 and 30 June 2017. This is an expansion of the previous deduction threshold of $1,000.

What can I claim under this measure?

Cars, vans, utes, trailers, motorbikes, lawnmowers, ovens, fridges, coffee machines, other machinery, kitchens, tables and chairs, carpets, printers, photocopiers, tools, welding equipment, saws, generators, pumps, solar panels, heating, hot water units, water tanks, air conditioning units, sound and security systems, computers—any item used for running the business—will be 100 per cent tax deductible.

What can’t I claim under this measure?

Purchases including horticultural plants and capital works are not eligible as they are subject to their own depreciation rules.

What if my asset is over $20,000?

Assets valued at $20,000 or more (which can’t be immediately deducted) can be placed in the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.

This measure commenced 7:30pm (AEST) 12 May 2015 and will cease on 30 June 2018. For more information please visit the ATO website.

UPDATE: The government has announced in the 2016-17 Budget that as of July 1, 2016, small businesses with an aggregated turnover of less than $10 million will now be able to access the simplified depreciation rules including the instant asset write-off scheme.

Yes. The terms may vary for funder to funder – but generally yes, you may make additional contributions that sit as a credit against the funding term or alternatively repay the funding early.

Yes. There is no need to compulsorily use your vehicle for the full nominated term. Please discuss your early termination plans with a Drive Easy consultant for the best tax effective early Termination plan.

Acknowledgment

Drive Easy acknowledges Aboriginal and Torres Strait Islander Peoples as the First Australians.

We acknowledge the diversity of Aboriginal and Torres Strait Islander Peoples across this land. We respectfully recognise Elders both past and present.