There are indeed many ways that you finance your set of wheels; you can buy directly from a dealership (new or used) and use their finance partner, or you could get a bank loan, or deal with an online lender.
You may not have heard about novated leasing, which is relatively new, and, in this article, we outline how novated leasing works.
What is novated leasing?
The term ‘novated leasing’ refers to an agreement between an employer and employee, whereby the leasing cost of the car is deducted directly from the employee’s salary at an agreed amount per month. There are certain tax advantages to novated leasing and when the lease period expires, the employee is under no obligation to buy the car.
Widely accepted
Many large companies in Australia now offer their employees the option of buying a new car using the novated leasing system, which means you can bundle all of your motoring expenses into a single payment. No more struggling to find the annual insurance premiums when you take out a novated lease
All-inclusive motoring
When you take out a novated lease, all vehicle maintenance, tax, and insurance can be included, you can even find deals that include tires and fuel. Even though you acquired the car with the help of your employer, there are no restrictions on how you use the vehicle, you are free to go anywhere at any time. We all know how stressful it can be when we have car running costs to pay, which is why so many people prefer this type of vehicle leasing.
Save GST on running costs
By bundling all your vehicle running costs into the lease, you don’t have to pay GST, which is a great saving; we all need to find ways to reduce our running costs and novated leasing does exactly that. If you would like to learn more about novated leasing, search online for a leading finance company that offers this service; providing your employer is in the scheme, there’s no reason why you can’t take advantage of this amazing service. Here are a few tips on choosing the right career for you.
New or used cars
Whether you prefer a brand-new or second-hand vehicle, you can enter into an agreement with your employer and a reputable lender to bundle all your vehicle running costs are included. There is nothing to lose and everything to gain by exploring the options that novated leasing brings; if you should choose to change your job, your new employer can take over the lease, or you can arrange direct monthly payments with the finance company.
You can find out about GST and other taxes by visiting a government website and your employer can probably give you information if they participate in the scheme.
Novated leasing is a way to bundle all of your transport costs into a single monthly payment that is deducted from your salary.
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