Nissan Advantage - Finance Lease

If you are looking for the most cost effective method of financing your new Nissan, Nissan Advantage is the answer. Nissan Advantage is a lease as defined by the Income Tax Act and an "agreement to hire" as defined by the Goods and Services Tax Act 1985. In simple terms this legislation allows for the calculation of finance charges on the GST exclusive cost of your new vehicle, which means lower interest costs and lower monthly payments compared with other forms of financing. You pay an initial advance rental, followed by monthly payments over an agreed term. Interest rates are fixed at the beginning of the contract period. The initial advance rental and contract length can be varied to suit your requirements, and for business purchasers whose income is subject to seasonal fluctuation, structured payments can be included to accommodate such fluctuations.

Monthly payments can be reduced by incorporating a larger residual value into the payment structure. This final payment can be based on the expected value of your vehicle at the end of the contract and in effect defers part of the cost until then. If you are GST registered, you may claim the GST content of the advance rental at the commencement of the contract and also claim the GST on the monthly payments as they are paid. The GST component of your monthly payments relate only to the principal portion of the payments and combined with the benefit of lower finance charges, gives you the Nissan Advantage.

The term of the lease contract defines the treatment of the lease (ie, as an operating lease or finance lease) for accounting and income tax purposes as follows:

Lease term less than 75% of the motor vehicles useful economic life as determined by Inland Revenue Department guidelines:

For business purchasers the vehicle is not shown as an asset in the financial accounts. The GST exclusive monthly payments are treated as rentals and can be claimed as an expense item against assessable income.

Lease term greater than 75% of the motor vehicles useful economic life as determined by Inland Revenue Department guidelines:

For business purchasers the vehicle is shown as an asset in the financial accounts. The interest charges and depreciation allowances can be claimed against assessable income.

The Nissan Advantage contract can be terminated early based on a settlement figure which would be advised by Nissan Finance at the time termination was required. At the end of the Nissan Advantage contract, you may offer to purchase the vehicle providing that all of your obligations have been met.

Available on:

• New Nissan vehicles and approved used vehicles

Suitable for:

• Private and Business Purchasers

Key benefits:

• Flexibility to negotiate the initial advance rental and payment planFixed interest structure allows you to budget and plan more effectively
• Eases cash flow and releases capital for other uses
• The monthly payments are calculated on the GST exclusive cost price of the vehicle which subsequently reduces your finance charges
• Lower monthly payments

Particular benefit to business users:
Lease term less than 75% of the motor vehicles useful economic life as determined by Inland Revenue Department guidelines:

• Monthly payments allowable against assessable income
• If you are GST registered, you may claim the GST content of the advance rental and monthly payments as they are paid

Lease term greater than 75% of the motor vehicles useful economic life as determined by Inland Revenue Department guidelines:

• Interest charges are allowable against assessable income
• Depreciation allowances can be claimed against assessable income
• If you are GST registered, you may claim the GST content of the advance rental and monthly payments as they are paid