Finance Products

Consumer Loan
Business Lease
Business Asset/Commercial Hire Purchase
Novated Lease
Master Lease Agreement
Fleet Leasing
Personal Loan

Consumer Loan

A Consumer Loan is a convenient and flexible way for you to finance the purchase a new or used vehicle of your choice. At AFS, we call our consumer loan a Loan Contract & Mortgage.

The vehicle is used as security for the loan, however you have ownership from the beginning of the contract. When you make the final payment you get clear title to the vehicle.

You can make a deposit towards the vehicle purchase to reduce your monthly repayments, however, depending on your credit profile, no deposit may be required at all. You may also be able finance other costs associated with the vehicle purchase such as comprehensive insurance, registration, and on-road costs.

The AFS Consumer Loan has terms ranging from 12 to 60 months and the interest rate is fixed, meaning you can budget your expenses with confidence. We provide you with convenient payment methods like direct debit and Bpay and payments can be made as frequently as you like so that you can reduce the overall interest you pay.

A Consumer Loan can also be used to finance motorcycles or boats.

You also have peace of mind knowing that your loan is regulated by the National Credit Code.

Benefits of a Consumer Loan

  • Preserves your cash and credit facilities. Funds can be used to purchase other assets, invested in income producing assets, or maintained to assist with unexpected expenses.
  • Other costs associated with the loan can be financed on the contract such as comprehensive insurance, registration and on-road costs.
  • The vehicle is owned by you and registered in your name.
  • Payments can be structured to suit your budget and cash flow by varying the deposit, term, and any lump sum payment.
  • With a fixed interest rate you're protected against market fluctuations.
  • You can increase the frequency of your payments to reduce the interest charges and the term of the loan.
  • You can choose various payment methods including direct debit, BPAY or coupon books.
  • There is no GST on loan payments including any final balloon payment. However, GST may be payable on the purchase price of the vehicle or other items like insurance.

To understand more about our Consumer Loan, please read our Terms & Conditions.


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Chattel Mortgage

A Chattel Mortgage is a commercial finance product where AFS will lend money to your business to purchase a car or commercial vehicle.

Your business takes ownership of the vehicle (the chattel) at the time of purchase and AFS takes a mortgage over the vehicle as security for the loan by registering a charge with ASIC. Once the contract is paid in full, the charge is removed giving your business clear title to the vehicle.

A Chattel Mortgage is suitable for those companies, partnerships and sole traders who use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the GST in the vehicle's price up-front. GST is charged on the purchase price of the vehicle but not the monthly rental or the contract balloon (final instalment). Where your business is registered for GST, you can claim some or all of the GST contained in the vehicle price as soon as you lodge your next BAS, rather than over the term of the loan. Under a Chattel Mortgage you can claim the interest charges on the contract and depreciation up to the depreciation limit as a tax deduction.

Benefits of a Chattel Mortgage.


  • Preserves the existing cash and credit facilities of your business. Funds can either be invested in more productive areas of your business, or maintained to take advantage of an unexpected business opportunity.
  • Specific asset security. Your business does not have to tie up additional business and/or personal assets.
  • Ability to borrow less than the total invoice price of the goods by way of deposit.
  • Other costs associated with the purchase can be financed on the contract such as comprehensive insurance, registration and on-road costs.
  • Fixed cost contract. A fixed rate and term make for accurate budgeting and also provides a hedge against market fluctuations.
  • Loan repayments can be specifically structured to suit the business cash flow.
  • A larger final payment called a Balloon Payment can be structured to reduce the regular monthly rentals, improving your business cash flow and making the vehicle more affordable.
  • The interest component of the payments and the depreciation on the goods are tax deductible if the asset is used to generate assessable income.
  • If your business is registered for GST, it can claim the GST charged on the vehicle price as an input tax credit when the next BAS return is lodged.
  • The vehicle is owned and registered by your business.

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Business Asset Purchase / Commercial Hire Purchase

Under an Asset Purchase, your business contracts to pay hire charges for a fixed period, at the end of which, the legal title to the vehicle passes to the business. Until all the hire charges have been paid, legal title remains with AFS.

The payments of an Asset Purchase can be structured by varying the level of deposit and/or making balloon payments either during or at the end of the Agreement.

An Asset Purchase provides your business with the ability to purchase the equipment at any time during the term of the agreement.

Unlike a Finance Lease where the full amount of the lease rental is tax deductible, only the interest component of the payments and the depreciation on the goods are tax deductible.

An Asset Purchase is suitable for companies, partnerships and sole traders who account for GST on an Accruals basis, and individuals using the vehicle for business purposes. If your business is registered for GST, you can apply Input Tax Credits to claim some or all of the GST contained in the purchase price of the vehicle. Businesses using Accrual accounting can claim the GST as a lump sum on their next Business Activity Statement (BAS), whereas those using Cash accounting can claim the GST in installments over the term of the contract. GST is not charged on the monthly repayment or on the balloon (final instalment) amount. Where the vehicle is used for business purposes, you business can claim depreciation up to the depreciation limit and interest charges on the contract as a tax deduction.

Benefits of an Asset Purchase.


  • Preserves the existing cash and credit facilities of your business. Funds can either be invested in more productive areas of their business, or maintained to take advantage of an unexpected business opportunity.
  • Specific asset security. The Hirer does not have to tie up additional business and/or personal assets.
  • Ability to hire less than the total invoice price of the goods by way of deposit.
  • Other costs associated with the purchase can be financed on the contract such as comprehensive insurance, registration and on-road costs.
  • Fixed cost contract. A fixed rate and term make for accurate budgeting and also provides a hedge against market fluctuations.
  • Hire charges can be specifically structured to suit your business cash flow.
  • A larger final payment called a Balloon Payment can be structured to reduce the regular monthly rentals, improving your business cash flow and making the vehicle more affordable.
  • The interest component of the payments and the depreciation on the goods are tax deductible if the asset is used to generate assessable income.
  • If your business is registered for GST on an Accrual basis, it can claim the GST as a lump sum when the next BAS return is lodged.
  • GST is not charged on the onthly repayment or on the balloon.

Similar in nature to this product is the Chattel Mortgage which only differs in that the borrower has ownership of the vehicle from the beginning of the agreement.

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Business Lease

A Finance Lease is a finance agreement which gives your business (the "lessee") the use of property owned by AFS (the "lessor"), for a stated period of time in return for regular payments ("lease rentals") which are generally tax deductible.

The key feature of a lease is the separation of ownership and use of the leased asset. AFS, as lessor, retains legal ownership of the assets receiving all lease rentals under the agreement and is entitled to the return of the assets that are subject to the lease. Your business, as lessee, has the possession and right to use the assets for the term of the lease in consideration for which your business makes lease rentals to AFS.

A Finance Lease is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. It is also ideal for employees who want to salary package a vehicle through a Novated Lease as part of their remuneration.

GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where your business is registered for GST, it can claim some or all of the GST contained in the lease rental and the residual value as an input credit on its next Business Activity Statement. Where the amount financed is below the depreciation limit your business can claim the lease rental as a tax deduction. Above the depreciation limit, interest charges on the lease and depreciation up to the value of the depreciation limit can be claimed.

A Lease normally has provision for a predetermined residual value to be satisfied at the end of the lease term. At this stage, you may wish to re-lease the goods or to satisfy your obligations with regards to the residual value.

This non-equity form of financing enables your business to free up cash resources from the purchase of assets for other uses. The rental nature of a lease also assists insulate a business from technological obsolescence.

Benefits of a Finance Lease


  • Preserves the existing cash and credit facilities of the lessee's business. Funds can either be invested in more productive areas of their business, or maintained to take advantage of an unexpected business opportunity.
  • Specific asset security. The lessee does not have to tie up additional business and/or personal assets.
  • 100% financing of the value of the goods.
  • Fixed cost contract. A fixed rate and term make for accurate budgeting and also provides a hedge against market fluctuations.
  • Lease rentals can be specifically structured to suit the business cash flow, including the ability to make advance lease payments.
  • Lease rentals, and the associated costs of running the specific asset, are allowable tax deductions if the asset is used to generate assessable income.
  • As the GST contained in the car's purchase price is claimed back by AFS, only the vehicle's price exclusive of GST is financed, lowering the monthly lease payments.
  • Finance Leases are off-balance sheet transactions and require minimal business administration.
  • Residual value is predetermined.

Leasing vs Hiring
The following comparison of features highlights some key differences between leasing and hiring an asset:

Finance Lease Hire Purchase
Financier owns the equipment. The Lessee has no right to purchase either during or at the end of the term, although the financier will consider an offer to purchase for the residual value. Financier owns the equipment during the term of the agreement, with ownership automatically transferring to the Hirer when the final payment is made.
100% of the lease rentals are fully tax deductible provided the vehicle/equipment is used to generate assessable income.
The interest component of the payments and depreciation on the vehicle/equipment are tax deductible provided the equipment is used to generate assessable income.
100% financing. A Lease requires the full value of the goods to be financed. The Hirer may hire less than the full value of the goods. Deposits are optional and generally not required.
Lease rentals are subject to duty and GST in most States and Territories. Payments and/or the agreement may be subject to duty. Goods are subject to GST.
The Lessee indemnifies the financier for the residual value of the vehicle/equipment. The Hirer has the option to purchase the equipment at any time during the term of the agreement.

Laws and taxes applicable to these products are subject to change. You should seek independent advice from your accountant or advisor when assessing these products.

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Novated Lease

The novated lease product is specifically designed for the financing of motor vehicles included in salary packaging arrangements. With a novated lease, you enjoy the use of a vehicle and the benefits of paying for the car from pre-tax salary.

The AFS novated lease is a tripartite agreement between AFS as the finance company (Lessor), you as an employee (Lessee) and your employer (Payee), under which you lease a car and your employer agrees to take on your obligations under the lease by paying the monthly lease rentals, and often the running costs, from your pre-tax income ("salary sacrificing" this income).

On completion of the novated lease period or on termination of your employment, responsibility for the lease reverts to you and the employer has no further obligation.

A novated lease may give rise to a fringe benefits tax liability and you should seek independent advice on this issue from your accountant.

Benefits to the Employer:


  • Taxation Benefits - the lease payments and running expenses are generally tax deductible.
  • No obligation for the vehicle on termination of the employee's employment: no residual risk and no excess vehicles if an employee leaves.
  • The lease liability is off balance sheet.
  • Reduced administration time & costs.
  • Employment on-cost savings compared with paying the equivalent as a salary.

Benefits to the Employee:


  • Flexibility in choice and use of a car that may not otherwise have been provided.
  • Tax effective as payments are made from pre-tax earnings.
  • Payments can be structured to suit the employee's needs, budget and cash flow.
  • Transportability of the lease on termination of employment.
  • The ability to have the car used by the employee's family, dependent on insurance restrictions.
  • The ability to make an offer for the vehicle at the end of the lease.
  • You retain any equity built up in the vehicle, not your employer.
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