Novated Lease 

Save with a novated lease car loan

novated lease is a type of leasing agreement which is quite common in Australia. It allows employees to obtain a vehicle by using their pre-tax income and is set with a three-way agreement between an employer, the person and their lending company. What happens is that the employee buys the vehicle from the lending company who then has an agreement with their employer to sacrifice a part of their salary to attain the lease payments.

The terms for such a lease can be anywhere between 1 to 5 years depending on what was agreed upon with the employer. Every monthly payment that is made will go towards the reduction of the total balance for the lease. All of the monthly lease payments would then be deducted automatically from the pre-tax salary, providing the person with amazing tax benefits rather than just financing the vehicle on their own.

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Advantages Offered by a Novated Lease

One of the major advantages of a novated lease is that all of the running costs which include the fuel, maintenance, tyres and insurance can be part of the monthly payment depending on the type of lease you’ve chosen. This can turn out to be quite convenient especially if there are any big repairs needed by the vehicle.

A novated lease is also advantageous during the end of the term, as the person will have the option to either buy the vehicle directly, refinance the car using a new lease or to sell it.

Normally, novated leasing is usually a tax-effective approach that individuals can take when purchasing a vehicle depending on the type, kilometres travelled yearly and the leasing terms.

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Online Novated Loans

A novated lease is a type of leasing agreement which is quite common in Australia. It allows employees to obtain a vehicle by using their pre-tax income and is set with a three-way agreement between an employer, the person and their lending company. What happens is that the employee buys the vehicle from the lending company who then has an agreement with their employer to sacrifice a part of their salary to attain the lease payments.

The terms for such a lease can be anywhere between 1 to 5 years depending on what was agreed upon with the employer. Every monthly payment that is made will go towards the reduction of the total balance for the lease. All of the monthly lease payments would then be deducted automatically from the pre-tax salary, providing the person with amazing tax benefits rather than just financing the vehicle on their own.

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Frequently Asked Questions

Can I use this lease type as a tax deduction?

Normally, novated leasing is usually a tax-effective approach that individuals can take when purchasing a vehicle depending on the type, kilometres travelled yearly and the leasing terms.

What is a novated lease?

 A novated lease is a type of leasing agreement that allows employees to obtain a vehicle by using their pre-tax income and is set with a three-way agreement between an employer, the person and their lending company.

What happens is that the employee buys the vehicle from the lending company who then has an agreement with their employer to sacrifice a part of their salary to attain the lease payments.

How long does a novated car lease go for?

The terms for such a lease can be anywhere between 1 to 5 years depending on what was agreed upon with the employer. Every monthly payment that is made will go towards the reduction of the total balance for the lease. All of the monthly lease payments would then be deducted automatically from the pre-tax salary, providing the person with amazing tax benefits rather than just financing the vehicle on their own.

How does a novated lease help me?

One of the major advantages of a novated lease is that all of the running costs which include the fuel, maintenance, tyres and insurance are all part of the monthly payment depending on the type of lease you’ve chosen. This can turn out to be quite convenient especially if there are any big repairs needed by the vehicle.

 

A novated lease is also advantageous during the end of the term, as the person will have the option to either buy the vehicle directly, refinance the car using a new lease or to sell it.

Loans 123’s Fast Perth Financing

We have such a large range of car loans available us so we have the luxury of making sure you get the loan that perfectly suits or situation, how much you want to borrow, or what type of veichle you want. Start crafting your loan online today, no appointments needed.

 

We use competitive interest rates for your user or new car loan to make your loans better.

 

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