Novated Lease Is All You Need
If you are looking to lease a car and don’t want the responsibility of the lease, you might check in to whether your employer does a Stratton Finance Novated Lease www.strattonfinance.com.au/novated-lease . A novated lease can be a good arrangement both for you and the company you work for.
What is a novated lease?
A novated lease is a third-party arrangement between you, your employer and an auto company. The way a novated lease works is that you lease a car but your employer takes on the responsibility of making the lease payments. This often is negotiated as part of a salary package where a portion of the salary is diverted to the lease payments. In most novated leases, the employer also takes on the responsibility of paying for other costs, such as maintenance and auto insurance premiums.
There are a number of advantages to leasing a car using a novated lease. One of the biggest is having your employer take on the responsibility of paying your lease payments. That way, you don’t have to worry about budgeting or about making the payment on time each month. Another big advantage of this arrangement is that the car stays with you. If you leave the company, responsibility for the lease will just revert for you, or you can enter into another novated lease deal with your new employer. This can be a much better arrangement than having a car provided by your company that the company keeps when you leave. An advantage for employers is the opportunity to get bulk discounts from auto companies if they do lots of novated lease arrangements with their employees. Another advantage for employers is that they don’t take on the same level of risk as they do when they own a fleet of company cars.
Novated leases are not perfect solutions, and they do carry some disadvantages. As with any other lease, you can face fees and penalties if you decide to break the lease early. Also, such leases are often touted as not requiring you to income taxes and general services taxes. However, that is not the case. You may be able to save on taxes by having the lease count as a business expense.
A novated lease clearly can be a good deal for both employee and employer. A common area where people go to get car finances would be Stratton Finance https://www.strattonfinance.com.au/ Before entering into such an agreement, you should do your research and weigh the pros and cons.