Should I finance or pay cash

There is no definitive answer to this question it depends on your own situation. There are definitely pro's and con's and we will outline some of them here to assist you in making the right decision. We recommend you speak to your accountant about the tax implications and your finance specialist if you decide to lease to ensure you get the most out of your situation.

financing - pro's

Flexibility: You might not need to put any deposit in, you can nominate your payments, the time period and also the residual (balloon) payment at the end of the lease term. This may lead you to be able to purchase at a higher price than you could afford if paying by cash.

Save your cash: As your not putting any money in you will get to keep your cash for other things. As well as saving cash the chances are that as you are buying a new or near new asset your maintenance cost should be lower.

financing - con's

The Numbers: Did we mention speaking to your accountant? You need to do your numbers to ensure you have a clear indication of the benefits if you choose to finance. If you purchase a car or a piece of specialised equipment your assets might not be worth the residual value due at the end of the finance period. While that mightn't worry you if you need to sell the asset for any reason this may require you to put some of your own cash into the sale to clear the debt.

Insurance: For some reason insurance companies charge a higher premium for assets under finance.

If you have any other questions please phone us on 03 9832 0802 or complete the form below.