Buying a Car in a Beneficial Way

How can one explain ‘Novated Leasing’?

Novated Leasing is a unique type of financial arrangement, which is very much popular in Australia, and is a highly beneficial financial scheme, as far as the monthly salaried persons are concerned. By using this lease method, all such individuals will be able to become owners of brand new motor vehicles, without any initial payments from their pockets.

How does ‘Novated Leasing’ work?

The employees can reach an agreement with their company for forgoing a fixed amount from their ‘pre-tax’ monthly salary and the company will straightaway pass the same to the financial company, which has given the money in advance to buy the vehicle. As a matter of fact, there are three partakers in this financial bond; the individual employee (who is the lessee), the financial company (who is the lessor) and the company where the concerned employee works; all the three partakers are benefited very much. The employee will be able to get hold of a new car without the initial huge expense, the financial firm is getting a steady monthly income, till the end of the contract, and the company will be able to satisfy their workforce considerably, so that they will become much more loyal towards the company. This enhanced fidelity level will bring more positive results to the company.

What are the benefits of Novated Leasing?

Benefits of the Employees:

• One of the main benefits of this scheme is that employees will be able to enhance the size of their disposable income.
• The concerned employee will be able to reduce the individual tax level, because, the monthly reduction will be going straight from the ‘pre-tax’ salary of the employee, and hence, he or she will be liable to pay tax, only on the residual income.
• The employee will be able to go for the specific brand, in accordance with his or her mental liking.
• When the period of agreement expires, there is an option to buy the vehicle, by paying the amount as fixed by the lessor.
• Otherwise, the employee can opt for a new lease agreement.
• More than one vehicle can be leased, if the employer agrees for that proposal.

Benefits of the Employers:

• The employers, on the other hand, can supplement the monthly salary of their workforce, which in turn will augment their fidelity level, to a great extent.
• This scheme will also facilitate the ‘employee retention’ tasks of the company.
• The management can avoid spending heavily, for buying vehicles for their employees.
• The company did not have to bother about the payment, as the same can be recovered from the monthly salary of the employees.

Benefits of the Financial Company:

• As far as the financial company is concerned, it will get a permanent monthly income, till the expiry of the contract.
• After the contract, they can decide a price for the vehicle.
• If the customer is not willing to pay the demanded price, they can sell it outside.

 

What are the benefits of taking ‘Novated Leasing’ through reputed financial firms?

• Professional advises.
• Attractive discounts while vehicle purchase.
• Committed driver relationship.
• Fuel discounts.
• Discounts while carrying out maintenance works.
• Round-the clock service.

 

Tags: Motor vehicle, Novated lease, Vehicle leasing

Category: Car Lease