Owning a car is considered a must, but the costs of purchasing and maintaining a vehicle are too high. For the Australian who wants to maximise his savings while driving a new car, a novated lease is an attractive and cost-effective solution. Here is all the information you require regarding novated leasing and its advantages, regardless of whether you are a first-time car buyer or considering an upgrade.
A Novated Lease: What Is It?
You, your employer, and a leasing business enter into a three-way agreement called a novated lease. In short, your employer agrees to have auto lease payments deducted from your before-tax income, which in turn reduces your taxable income and, subsequently, your tax liabilities. Pooling expenses such as maintenance, insurance, and registration into a single, easy payment not only makes car ownership cheaper but also simplifies the process.
Why Leverage a Lease?
- Save Tax – You can use the pre-tax income to fund your lease, and as a result, your taxable income will be lower.
- Simplification – Having a novated lease simplifies owning a car. All costs, such as fuel, maintenance, and insurance, are rolled into one payment.
- Flexibility – You have the freedom to choose whatever vehicle you want; you may choose an older model or a new one.
- No Upfront Costs – Unlike other auto loans, novated leases usually do not require a down payment, so it is easy to drive your dream car.
How SG Fleet Makes Novated Leasing Easier
For any Australian who wants a hassle-free experience, SG Fleet is one of the most reliable partners when it comes to innovative leasing. The company has several years of experience in its field. It offers an innovative leasing solution to meet every client’s requirements. The procedure is very simple and hassle-free, ensuring that everything regarding car ownership is simplified.
Considerations Before Leasing a Novated Vehicle
Even though a novated lease has several advantages, there are a few things to consider:
- Employment Dependency: Since a novated lease is dependent on your job, it’s a good idea to know what happens if you move jobs.
- Mileage Limits: Select a plan that fits your driving patterns because certain leases may include mileage restrictions.
- Residual Value: If you want the car after the end of the lease term, then you have to pay the residual value. Therefore, your financial plan needs to be adjusted accordingly.
The Reasons for the Increasing Trend of Novated Leasing
Novated leasing has been becoming increasingly popular in Australia, mainly because of its ease and financial benefits. For professionals who want to drive a new or almost new car without having to bear the financial stress of a regular auto loan, it is a great choice. Given the rising cost of fuel and automobiles, a novated lease provides a more sensible and economical option to continue driving.
Conclusion
A novated lease is the savvy way to enjoy the liberation of the road minus a heavy financial burden. By making the process easy via the simplifications of such providers as SG Fleet, now is indeed the appropriate time to consider this latest car financing solution. As if it were tax savings or convenience or flexibility that form the order of the day, hitting the road to a vacation home rental comfortably and effortlessly is only a novated lease away.
