There are also differences in how GST can be claimed.
Not entirely correct
Operating Lease
No matter if you're on Cash or Accrual for GST purposes, you can only claim a portion of the GST with each lease payment.
The lessor lends the Net Amount Financed exclusive of GST and charges GST with each repayment, therefore if you are GST registered you claim the GST with each repayment at each BAS. The net repayment is deductible on your annual tax return. The ownership of the asset lies with the lessor at all times and when the lease is at the end the vehicle is returned
Chattel Mortgage/Hire Purchase
Cash - A portion of the GST with each payment
Accruals - The entire amount upfront
Chattel Mortgage: GST can be claimed upfront whether GST is set as cash or accrual as the ownership of the vehicle will be the customers from the day they purchase and the financier takes a mortgage over the vehicle. Asic will charge a mortgage fee if the owner is a company.
Hire Purchase (CHP): If GST set on cash basis, GST will be claimed as a portion with each repayment, but if set on accrual an upfront amount can be claimed. The ownership is the financiers until all monies have been paid where the ownership becomes the customers once there is no monies outstanding.
Depreciation and the interest compenent is also deductible in both Chattel Mortgages and CHPs.
Finance Lease / Loan
No matter if you're on cash or accruals, it's the whole amount upfront.
Finance Lease: Lessor finances GST exclusive and GST is payable and claimable with each repayment. The whole net repayment can be deductible. There are guidelines under the ATO's IT28 ruling with residual values to make a Lease a true Finance Lease for maximum deductibility. Ownership of vehicle is always the finance companies and at the end of the term there usually is a residual value(RV), but you can get Leases without RV. GST definately cannot be claimed upfront on a Finance Lease.
A Loan is usually just for private usage. If it is secured, it is set up similiar to a Chattel Mortgage and if unsecured, it is a straight borrow from the bank. If the car is used for business use, you would not set up as a loan.