What is a Novated Lease for Cars?
Even though you might have heard of car leases before, one thing that you might not have ever heard of is a novated lease. However, if you have not yet heard of this type of car lease, you could be missing out on an opportunity that will work out really well for you.
A novated lease is designed to be a part of the salary and benefits package that is offered by an employer. In addition to your salary, your employer will agree to pay lease payments for you for a vehicle of your choice. This will be taken out of your pre-tax salary, and you may take a pay cut because of it. However, the vehicle will be there for you to use for your personal use, so you will not have to worry about paying for a personal vehicle for yourself.
The benefits of a Stratton Novated Lease can be numerous. For one thing, you might find that you will get a lot more for your money than you would get if your employer were to simply pay you the money as a part of your salary instead. Even though your paycheck might not be as high, you might find that you come out better financially every month.
There are also a lot of tax benefits that go along with a novated lease. Since the amount of the lease is taken out of your pre-tax income, you do not have to worry about paying taxes on this part of your salary. For someone who is looking for every tax break possible, this can be a really good thing.
Additionally, you might find that you are able to qualify to drive a nicer car than what you would be able to drive if you were to go out and purchase or lease a car yourself. Even though your information will be taken into consideration when you lease the car, your employer’s will be as well. The lender will know that your employer will be on the hook for paying back the lease payments, so you can help improve your chances of getting approved for a vehicle that you might not get approved for on your own. For someone who is in a situation in which buying or leasing a car can be difficult, this can be helpful.
Overall, even though a novated lease is not necessarily a good option for every driver, it is definitely something that you may want to check into. If you are currently looking for a job and have been offered a novated lease as a part of your compensation package, you should know that it can be a positive thing that you might want to consider. If you are thinking about asking your current employer to improve your benefits and salary package, it might also be something that you will want to mention. You can also talk to someone from a local dealership or look online for more information about a novated lease if you would like to learn more.