Commercial Boat Loan
A boat lease is simply a type of boat finance that can be for business use and is commonly known as a commercial boat loan. The lender purchases the boat and then leases it to you at an arranged lease repayment schedule. There is a amount of money still on going at the end of the lease which they call a residual.
Most lease products ask that at the end of the term you must payout the residual and take ownership of the boat.
When leasing boats the financier purchases the boat and provides a lease arrangement back to you. There can be an arrangement to have the opportunity to own the boat at the end of the term of the boat lease.
Boat leasing is normally used as a type of commercial boat finance.
The financier being the purchaser will claim the GST component in the boat sale. The balance is then leased of which the payments are subject to GST (unless there is GST exemption).
A boat lease terms and residuals can be set by the Australian taxation office and these details can normally be provided by your boat finance company, accountant of the Australian Taxation Department.
The boat lease interest rates are fixed with no option for a variable interest rate or unsecured marine finance.