Rent-To-Buy - Heavy Vehicle Finance Australia

How does Rent-To-Buy Work?

Under a Rent-To-Buy facility, the client rents the goods back from the financier and then receives a 75% rebate on the monthly payments made over a particular period of time.

Features of a Rent-To-Buy Facility

  • only a minimum short 12 month contract before client has the ability to either refinance, payout or hand back the equipment to the financier
  • fixed payments apply
  • 75% of the rental payments are rebated back to the client should they wish to purchase the equipment outright or refinance
  • full rental payment is claimed as a tax deduction at the end of the financial year on customers profit and loss statement

Benefits of a Rent-To-Buy Facility

  • quick turnaround times for the client
  • allows new start business easy access to funds when purchasing capital equipment
  • short 12 month contract means a customer is not locked into a 5 year loan contract
  • option to return the equipment to the financier once a large project is finished and then not be stuck with equipment past that date
  • a rebate of 75% on the monthly payment made by the client, means that the payout figure on the contract is significantly reduced at the end of the 12 months
  • fixed payments allow businesses to accurately project income and expenses going forward
  • flexible options with respect to either handing the goods back at the end of the 12 month period or continue renting on a month to month basis
  • client can refinance the contract at the end of the 12 months at a significantly reduced amount based on the initial purchase price of the goods
  • client can also own the goods outright be paying cash for the asset based on fair market value
  • full rental payment is claimed as a tax deduction at the end of the financial year

Example of a Rent-To-Buy Facility used for Mining Equipment Finance.

  • New business looking to purchase a Rock Crushing Plant – $585,000 (gst inc)

  • Finance Type – Rent-To-Buy
  • Loan Amount – $585,000 (client borrows the gst inc amount)
  • Term – 12 months
  • Residual – NIL
  • Payments – weekly in advance


  • Client had been knocked back by all 4 of the major banks based on the fact the business was just starting out and that the goods were deemed to be too specialised
  • The rent-to-buy facility allowed the new business to acquire the crushing plant and win a $10M contact
  • Fixed interest rate allowed client to easily budget for ongoing expenses
  • 75% of the monthly payment is rebated back to the client, which means they could refinance the equipment at the end of the 12 month period for $380,250.

Who would use a Rent-To-Buy Facility?

A Rent-To-Buy facility is a form of financing heavy equipment, for new start ventures or for businesses that have a work contract for a specific period of time (12 – 24 months) but do not want the burden of paying off the goods over a 5 to 7 year period.

Heavy Vehicle Finance advises that all businesses discuss a particular funding scenario with their Accountant before making a decision on what product to use when looking at crushing plant finance or any other type of heavy equipment funding. There are many different tax implications that need to be discussed with a tax accountant before deciding whether or not a Rent-To-Buy facility would best suite the financial structure of the business.

To ask more questions about a Rent-To-Buy Facility?

To discuss how a Rent-To-Buy facility works in further detail, please call one of our Finance Consultants on 1300 788 740. One of our specialists Finance Consultants will be able to advise as to whether or not a Rent-To-Buy facility would best suit your business and a particular funding scenario. You might also wish to input your details into our online finance pre-approval form so as to secure a finance pre-approval.