Examining A Novated Lease Agreement
The topic of a novated lease has been ongoing in Australia for years because some people still don’t understand how the lease functions. A Novated Lease by Stratton Finance is one of the most cost-effective and flexible methods of purchasing a car. The process of buying a car through other means can be a big deal both financially and emotionally. That explains why many people in Australia are turning to a novated lease agreement as a way of purchasing cars. If you are still not convinced of why you should buy your car with a novated lease, then this article will give you several reasons why you should embrace this financing option.
Save on tax
When you take up a novated lease agreement, you pay less tax throughout the year unlike in the past. That is because part of your monthly payments is deducted from your pre-tax salary, which means a reduction of your taxable income. Better still; the agreement is inclusive of not only your lease payments but also other costs such as registration, fuel, servicing, and maintenance. Therefore, covering these regular costs using your pre-tax salary and reducing your taxable income is a bonus for employees.
It looks after everything on your behalf
The financing company that offers the novated lease not only sources your vehicle but also delivers it to your convenient location. Besides, the company can also handle the necessary paperwork, organize the car insurance, and arrange for the financing. That means that you don’t have to worry about the car purchasing process if you are using a novated lease.
Employees pay less for the car
Novated leases are affordable and cost-effective, so employees don’t have to break the bank to purchase their new car. Besides, novated lease financing companies offer discounts because they have a network of car dealers. Thus, you can enjoy a great price on the preferred car model.
Everything is included in a novated lease
Novated leases are inclusive of the entire budget that covers your finance as well as the running costs. The agreement also sets aside the costs and expenses from your pre and post-tax salary for each pay cycle. Therefore, you don’t have to worry about maintenance and fuel costs. Also, a novated lease allows you to upgrade your car model after the expiry of the lease period, and the costs are included in the agreement. The lease also includes a warranty.
If you are still wondering or fantasizing about your dream and considering a novated lease to acquire it, then don’t waste any more time. You can use a novated lease calculator to get an estimate of the weekly or monthly payments you will be required to pay. Besides, you can personalize the borrowed amount, lease period, interest rate and the residual rate using the novated lease calculator at Stratton Finance