If you’re one the lucky few, you will have the money to be able to buy a car outright. The reality is, most people opt for a loan from the bank when it comes to buying a car. However, there is a better option when it comes to financing your vehicle, and it’s called a novated lease.
More and more Australians are choosing this option for the many benefits it provides.
Simply put, a novated lease is a financially binding agreement between a full-time employee, their employer and a car lease financier. Under a salary packaging contract, the employee chooses a vehicle they wish to lease from a reputable car dealership, and then the employer funds the monthly payments directly from the employee’s pre-tax income.
Here are 5 ways that a novated lease can benefit you, the employee:
It is easy to see why the novated lease has become an increasingly popular option over the years. From having the car for unrestricted use through to saving on the running costs, this financial agreement can even satisfy employers as well. If you’re on the market for a new car, consider a novated lease. Ensure you do your research first to determine if it is suitable for you.