Buying through a business changes the maths, but not always in the direction people assume. The structure you choose has more impact than the discount you negotiate.
Ownership structures
The vehicle can be owned outright by the entity, financed under a chattel mortgage, leased, or provided to an employee under a novated arrangement. Each has different balance sheet, cash flow and tax consequences.
The right answer depends on business structure, how the vehicle is used and who drives it, which is why this decision belongs with your accountant before, not after, the purchase.
GST, depreciation and the car limit
GST-registered businesses can generally claim the GST credit on a business-use vehicle, and depreciation is claimable, but both are capped by the car limit set each financial year.
That cap is why the purchase price on a prestige vehicle is often only partially deductible. Understanding the ceiling before you order avoids an unwelcome conversation in July.
Fringe Benefits Tax
Where a vehicle is available for private use by an employee or director, FBT is usually in play. It is one of the most commonly underestimated costs of a business vehicle.
Some commercial vehicles and eligible electric vehicles attract concessional treatment, which can materially change the comparison between two shortlisted models.
Buy, lease or novate
Ownership suits high-utilisation vehicles held long term. Leasing suits businesses prioritising cash flow and predictable replacement. Novating shifts the arrangement to the employee's salary package.
We model all three against your intended holding period and kilometres, then coordinate with your accountant so the vehicle is bought under the structure that actually suits you.