What is Novated Leasing? What You Need to Know

Many people are curious about the novated lease. They may have heard the term from other individuals but aren’t sure what this deals with. Novated is a vehicle leasing agreement that involves the use of an employee’s pre-tax salary to acquire a new vehicle. Many individuals say that this deal is quite tempting. Just imagine driving a brand new car without having to pay a massive amount of money for down payment. Well, this offer is of benefit not only for employers but also the employees who do not have the money to finance a new vehicle.

Many people consider this arrangement as a perfect way to obtain the vehicle that they want to drive. Car lease deals allow any employee to drive a car of their choice without breaking the bank. If you want to know what kind of deal this is all about, you can use an online novated lease calculator. By using these online calculators, you can check how much money you will need for you to take home a brand new vehicle. Also, there are leasing firms who offer assistance to understand the details of this agreement. They will help you check how much the repayment of the lease would be, as well as all the running costs you will need to save.

How can a novated lease agreement Adelaide help you get the vehicle that you want? To get it that you want, you must look for a company that offers financing assistance. This firm will purchase the car from the auto shop. For you to take it home, you will need to make monthly payments to the company through your employer. This deal is a three-way agreement and involves not only your financing firm but also your employer. From your pre-tax income, your employer will deduct a fixed monthly rate, and it will be paid to the financing firm.

The employee does not own the car during the leasing period. In essence, these car lease deals allow people to drive a brand new vehicle without having to pay a massive amount of money upfront. Think of it as a tenant depositing his monthly rent to the landlord. While this may sound too good to be true, this type of agreement can be of benefit to employees. For one, they can take home a larger amount of money from their salary. Since the monthly premiums for the leased vehicles are to be deducted from the gross income, the income taxes are as well reduced. This deal will allow you to drive a new car without sacrificing your monthly savings.