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What is a motorcycle lease?

A motorcycle lease is a rental agreement, the motorcycle is owned by the finance provider or lender (the lessor) and then leased to the user (the lessee) for a set term. A motorcycle lease allows the user to have full use of the motorcycle and has a predetermined residual value.

A motorcycle lease is also known as a bike lease or asset lease.

How does a motorcycle lease work?

The Lessor obtains legal ownership of the motorcycle to be leased, by paying the amount as advised on the (vendor's) supplier's invoice. The Lessee then has the use of the motorcycle and pays rent for that use for the term of the motorcycle lease contract. During the term of the motorcycle lease agreement, the Lessee merely pays rent and does not obtain ownership or equity in the car they are leasing. Under a motorcycle lease agreement the Lessee is responsible for maintenance and running costs, car insurance and registration fees for the leased item.

Residual and terms

The finance lease residual is the amount that will need to be paid to the finance provider at the end of a finance lease. Finance lease residuals are set by the Australian Taxation Office (ATO).

Click here for a detailed summary of all residual values and balloon structures. Car Lease Residuals

What are the benefits of a motorcycle lease?

• Motorcycle terms range from 12 to 60 months
• Rentals fully tax deductible if used for business use
• The Interest Rate is fixed for the term of the motorcycle lease agreement
• Motorcycle lease repayments are fixed for the term
• Lower interest rates due to the motorcycle lease being secured against the motorcycle
• GST on the purchase price of the motorcycle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST
• GST on the monthly repayments may be claimable by your employer
• We can have you in your new car within 24-48 hours
• You will receive great hands on personalised service from an experienced car leasing consultant
• Subject to credit approval, we will finance 100% of the purchase price

Who should consider a motorcycle lease?

A motorcycle lease is suitable when you use your motorcycle wholly or predominantly for business purposes. This means that the motorcycle is used for business for more than 50% of the time.

What are the tax implications of a motorcycle lease?

If the amount to be financed is below the ATO depreciation limit, $57,123, you are able to claim the full motorcycle lease rental as a tax deduction. Above the depreciation limit, it's simalar to a hire purchase agreement where the interest and depreciation up to the value of the depreciation limit can be claimed. Refer to ATO.

GST is also claimable on the monthly motorcycle lease payments, these can be claimed on your BAS.

Other leasing options?

If you are thinking about doing a motorcycle lease, you may also want to consider a Finance Lease, Commercial Hire Purchase or Chattel Mortgage as other finance options.

Need further information?

Either complete our friendly enquiry form and we will call you shortly or call the number 1300 Car Lease (1300 227 532) and talk to an experienced car leasing consultant today.

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