Benefits Of Taking Car On Novated Lease

Benefits Of Taking Car On Novated Lease

Postby js36927 » Tue Feb 01, 2011 7:08 am

Buying a car on lease is an old practice. Novated leasing is getting extremely popular these days with more and more Australians taking car on novated lease. Novated Lease is equally beneficial to the employer, employee and the auto company. It is 3 way agreements between the employer, auto finance company and the employee that allows employers to provide company car to its employees at a very little cost to the company and flexibility to both the parties.

The concept of novated lease is very simple and it works as very well for many employers as a measure for additional benefits to its employees. Novated lease allows employees to lease a car from an auto finance company on an agreement that the lease amount will be paid by his employer. The employer than pays the lease amount to the auto finance company and in turn deducts the amount of the lease payments from the employee's pre-tax salary.

Novated leased car enables the employees to enjoy the benefit of extra disposable income as the lease payment is made from the pre taxed salary. The employee can also choose his own car rather than settling for the company car. The employee can keep the car with him till he is with the organization and if he decides to change the job; the novated leased car can be transferred to the new employer, if desired. From an employer’s perspective, the novated leased vehicle is desirable as it increases the employee salary at no additional cost. The novated leased vehicle is neither an asset nor a liability and hence does not affect the balance sheet of the company.

However, there are many details to be considered when entering into a Novated Lease agreement. It is always the best idea to buy a car used or new from a reputed car broker or agent. If you are in Australia and would want to know more about novated lease or need any car buying service we suggest you to visit privatefleet.com.au. Private Fleet is a leading car buying service of Australia's that is capable of providing you all assistance you might need in buying a car without being too pushy and makes your car purchase hassle free and timely.

For more information about buying a new car please visit – privatefleet.com.au
js36927
 
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Re: Benefits Of Taking Car On Novated Lease

Postby Autolover » Tue Feb 01, 2011 11:59 am

Thanks for the information. Really leasing the car is the great possibility for the majority of people, especially if they do not have any chance to buy the car at once.
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Re: Benefits Of Taking Car On Novated Lease

Postby automotive » Tue Jun 14, 2011 11:36 am

The financial aspects and benefits/liabilities of novated leases are like any other proposition; they're neither inherently good nor bad, they're just math to be compared against other options.
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