A novated lease is a car loan your employer pays from pre-tax salary. It includes the vehicle purchase and all 
ChoosingIt’s a good novated lease provider with an extensive lender panel and fleet discounts for new cars is essential. It would be best if you also asked them whether they are trying to lock you into an exclusive contract. For the best novated lease, check this out.
Transparency
Most people assume there’s a catch with novated leasing, but it’s more transparent than a standard car loan. It’s just a bit more challenging to quote than a typical consumer product, and you must compare quotes with several providers.
A novated lease company should be able to explain their quote clearly and easily. They’re typically sourcing the finance from a specialist lender, and they will have fees associated with their service.
They should be transparent on these and pass them on to their employees. They should also be significant and specialised enough to negotiate volume discounts from national supplier networks on everything from tyres and glass to servicing and repairs. These will result in substantial savings for their employees.
Flexibility
A novated lease is a salary packaging solution that allows you to purchase or lease vehicles using pre-tax income, which can be cheaper than the upfront costs of traditional car finance options. With novated leasing, the vehicle’s depreciation and running costs are included in your lease payments.
At the end of your lease term, you can upgrade to a new vehicle, buy the residual amount (value) and own the car outright, or return it. A good novated lease provider should ensure your residual is lower than the vehicle’s value, meaning you’ll always get a fair price when selling.
Tax-effectiveness
Unlike a car allowance, novated lease payments are deducted from pre-tax salary, reducing the employee’s taxable income. It results in significant tax savings and can make a novated lease a more cost-effective way to get into the vehicle of your dreams.
Novated leases also allow for other costs, such as insurance premiums, maintenance, and registration renewal, to be included in the lease repayments so that one payment covers all the vehicle’s running costs. It can make budgeting and day-to-day financial planning easier.
It’s essential to consider your current and future circumstances when deciding whether a novated lease is the best option for you. Speaking to your accountant and Maxxia before deciding is a good idea.
Reliability
A new lease company should be able to provide you with a clear and accurate picture of what the package will cost. It should be able to help you decide whether it’s right for you and then offer the most competitive and convenient options for you to choose from.
A good novated lease provider will work out the best package based on your specific circumstances and car selection. They’ll also manage your loan payments and car running costs (fuel and insurance), so you don’t have to worry about them.
A novated lease can benefit almost anyone who needs a vehicle. It’s a great way to lower your taxable income, save money and get into and run the car of your dreams.
Safety
When choosing your novated lease provider, finding one that fits your needs is essential. They should be able to explain their quotes and fees in an easy-to-understand way and offer you flexibility when it comes to third-party providers for insurance, servicing, roadside assistance, etc.
The best innovative leasing company will ensure that you have access to the latest, safest, and most economical vehicles available. They will work with you to tailor a new leasing package that suits your needs and budget. Ideally, you should update your car every three years to benefit from the latest safety, comfort and convenience features. For the best novated lease, check this out.
