Car Lease , Used Car Lease
Buying a car is a big financial commitment and requires a fair amount of research,
and financing it may be the best decision. Numerous banks and finance
companies offer commercial car loans. There are several ways to finance your car
and a lease may a great option for you to consider.
Car Lease Novated
A novated car lease is similar to a standard leasing agreement and involves scheduled repayments against new car finance or used car finance. What makes novated lease different is that the
repayments go directly from your gross income, before it is taxed. It is essentially
an agreement for motor finance that includes the employer, the employee and the finance company.
Some employers may want to offer employees incentives that will motivate
them to work better and stay committed to the company or organization or package it as part of a employment salary. A novated
lease can be a great incentive for employees. The financial responsibilities and
ownership of the auto vehicle remains with you even if you wish to quit your job.
It may also be available because of a government employment work place incentives know often as vehicle salary sacrifice.
Novated car lease is found to be useful by both the buyer as well as the
finance company as there is a certain amount of security attached with it. The employer
will continue to make repayments from your pre-tax salary for as long as you are working
with them.
There are several advantages of a novated car lease and these include being able
to pay for the car with pre-tax dollars. You may also have wider range of vehicles to
select from and be able to buy a car which may currently be out of your price range.
In case you choose to terminate the lease or employment you could still continue to repay
the loan for the motor vehicle and own it.
