Corporate Transport Niugini Ltd :: Port Moresby, Papua New Guinea

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THE LEASE QUESTIONS WE GET ASKED THE MOST.

WHY COMPANIES AROUND THE GLOBE NOW CHOOSING LEASING AS A PREFERED OPTION TO ACQUIRING A NEW CAR.

The new millennium is shaping up to be the decade of strategic business partnerships, where organisations supplement their own expertise with that of outside organisations. The resulting synergy provides greater organisational efficiency, resulting in improved competitiveness. Leading organisations worldwide acknowledge that the costs of depreciating assets, especially motor vehicles, are often their second highest area of expenditure, after salaries. Motor vehicles tie up a great deal of capital and resource, whilst often incurring high operating costs, with maintenance accounting for a large percentage of overheads.

At a time when a representative mix of 100 cars and light vans consume K2.2 million annually, even small gaps in financial controls can mean that tens of thousands of Kina may evade anything more than superficial scrutiny. For many organisations the price of achieving the desired vigilance and accountability has been very high administrative costs. Full maintenance operating leasing provides a cost effective solution to the challenges faced by organisations in relation to their vehicle fleets. The concepts behind full maintenance operating leasing are essentially financial. As an alternative to external borrowing, or funding the fleet out of available capital, an operating lease provides the lowest after-tax cost. Added to this, operating lease commitments are off-balance sheet and fixed for the life of the vehicle. Thus streamlining cash flow and providing for simplified budgeting.

Why do companies lease?
CTN Leasing lets you have all the benefits of running cars, without all the costs and responsibilities that outright ownership demands. The capital you spent on buying cars can now be invested in more productive assets.

Is it cheaper to lease a car than pay cash or use alternative means of finance?
CTN Leasing can provide you with precise comparisons which show that leasing your next car will give you significant cash savings.

How does CTN Leasing car affect my company’s balance sheet?
All cars leased from CTN Leasing can be kept off your balance sheet to improve debit/equity ratio.

What additional advantages, if any, does CTN Leasing have over other methods of ownership?
The tax deductibility of your lease payments will depend on the level of business use of the car. If the car is used solely for business, your CTN Leasing payments can be fully tax deductible. Ask your accountant for precise details.

How long is a lease contract?
There are a range of lease terms available. Most commonly they are for 36 months.

What is a full maintenance operating lease?
This lease provides fully managed maintenance service and cost of registration for the car during the term of the lease. It also eliminates the risks, costs and hassles of selling the car that you would normally have as an owner.

What cars can I lease?
Any popular make or model of car in the Toyota range.

What running costs, in addition to the monthly CTN Leasing payments, am I responsible for?
NIL

What does it cost to lease the car?
Because there are over 30 models of cars in the market, a lease payment for each can vary significantly, depending on the cost of the car, the lease term, extras required and kilometre usage.

How can CTN Leasing get a better deal when buying a car and the best price when selling one?
CTN Leasing fleet buying and “full retail” selling power ensures you get the best prices available. These economies of scale are reflected in our competitive lease rates.

What happens if my car breaks down?
Our professional maintenance team will ensure your car is fixed as soon as possible. However, if it will be off the road for longer than 48 hours, a similar replacement car can be made available to you at “no charge”.

What happens if I want to change cars partway through the lease?
An early termination adjustment will be made by recalculating the monthly rental for the shortened period. The difference between this figure and the rentals already paid will be the additional charge levied.

Can I have the option of owning the leased car at the end of the agreed term?
Under a full maintenance operating lease you cannot purchase your leased car. However, if you want the option during the lease term, CTN Leasing can arrange a “Finance Lease” to suit your requirements.

CTN Leasing has been serving the business community of PNG for over 8 years. In this time, we have built an enviable reputation for thorough and professional service.

To us, no fleet is too small or too large. We give you the choice of numerous leases so you can have more options and alternatives.