Important Things to Know About Novated Lease
Are you searching for a good car on the market, but don’t have enough cash? You might be thinking about the financing choices such as a personal loan. It is not only you, the majority people considers the various financing options, but not the novated lease.
This is due to the lack of knowledge about novated lease. When it comes to novated leasing, it helps you to finance a brand new or used car. It even helps to finance your current car while providing a number of advantages. It helps in tax savings.
This type of leasing is an agreement between your employer, Novated lease firm and you. Besides, you will have the freedom to choose any car of your choice.
As per the agreement, the lease rentals must be novated by you to the employer with whom you have made agreement with (your employer).
Your employer deducts the required amount from your pay, and makes payment to the novated lease firm directly for the operating costs and lease rentals. This process is usually referred to as salary packaging.
If at all your employer changes or if your current employer do not make the payments, you must take the responsibility for making the payments. Hiring a broker would be much beneficial, if you are planning to lease a car, because they can find the best deals for you.
Before we discuss about the Novated Lease pros and cons, here is a quick suggestion for you. Use the online directories, if you need the details of the various brokers who can assist you for a novated lease.
Bleen is one of the popular directories available online, which can make your search process easy.
Keep reading to know about the pros and cons of Novated lease:
- Reduced taxable income. When you pay certain amount from your monthly payment, your taxable income reduces. This means your taxable income reduces.
- Companies that offer novated leasing might include all car operating expenses in your monthly payments.
- As a result, you always know exactly what is deducted from your pay check. The majority of novated lease companies pay for fuel, registration and servicing.
- If you think that all the employers provides novated lease option, you are mistaken. In fact, only very few employers provides this option to their employees.
- Employers don’t have to worry too much about anything as a novated leasing company often handles the majority of the paperwork. Another excellent (and affordable) method for businesses to motivate and recruit staff is by providing salary packaging option to them.
- Even if you lose your current job, you will locked in the agreement. This means, there is no way, you can escape from making the payment.
Choosing the right novated lease firm can make so much difference here. You can get your favorite car quickly. They will ensure that no delay occurs.
Their main goal is to satisfy their clients, by taking care of everything. Check online reviews before choosing a novated lease firm. Doing this can help you find the best firm.