Fully Maintained Operating Lease

Vehicle ownership

You own the vehicle outright.

You own the vehicle and the loan is secured against asset.

FleetPartners owns the vehicle throughout the lease.

May be suited to

Businesses with substantial free capital that are comfortable managing all vehicle running costs and admin without external support

Businesses that have capital available and want ownership

Businesses that want fixed costs, minimal admin and maximum flexibility

Cash flow impact

High

The full purchase price is drawn from your business’s cash reserves or savings

Running costs like servicing, repairs, tyre replacements and registration are paid in lump sums as required

Medium

The vehicle can be paid off over loan terms up to 7 years, and in some circumstances include a balloon sum payable at the end of the mortgage to reduce repayments

Running costs like servicing, repairs, tyre replacements and registration are paid in lump sums as required

Low

With a lease, you’re only paying for the vehicle’s depreciation, not the full purchase price, so the finance component is typically lower than a traditional loan

Running costs are bundled into the predictable monthly payment

Balance sheet

Full vehicle value sits on your balance sheet; the entire purchase cost hits cash flow on day one

Asset & liability appear on your balance sheet

Right-of-use asset and right-of-use liability appear on your balance sheet

Tax deductibility

Depreciation may be claimable over the vehicle's effective life; no interest deduction, and the timing of deductions is spread over several years

The vehicle purchase price’s GST amount may be claimable upfront (if you’re GST registered)

Depreciation & interest may be deductible. GST may be claimable on the upfront purchase price

Lease payments may be 100% tax-deductible as a business expense 

GST on the lease payments may also be claimable as an input tax credit

Maintenance included

X All servicing, tyres, registration and repairs paid for and arranged separately as they arise

X Managed separately by you

Included: servicing, tyres, registration, roadside assistance & more

Used car value risk

You carry the full depreciation risk

You carry the depreciation risk

FleetPartners carries the residual risk

End of term

The vehicle remains yours indefinitely; disposal, trade-in or private sale requires time and introduces residual value uncertainty

Retain the vehicle, often after a balloon payment

Retain the vehicle, with no balloon or residual value payment required

Fleet admin

X Tolls, infringements, FBT obligations and all driver administration managed entirely in-house

X Tolls, infringements, FBT obligations and all driver administration managed entirely in-house

FleetPartners manages registration, supplier payments, servicing, tolls, infringements, FBT & driver support

Typical term

No fixed term; you own the asset for as long as it remains in service

2-7 years loan terms typically

3-5 years lease terms