Car Financing Through Novated Leasing
If you’re looking to finance your car purchase, one of the financing solutions you can adopt is the novated leasing arrangement. This is one of the most popular solutions, and a wide range of individuals uses it to access the cars of their dream.
This option is known as salary sacrificing. It allows you to access the sum that you need to finance the purchase of your car. In turn, you agree to pay interest and make repayments of the borrowed sum over a period. What then sets this finance solution apart is how you make the repayments.
Under this loan arrangement, the repayment of your loan obligation is made from your salary. So, you connect your lender to your employer. They then enter into an arrangement where your employer agrees to transfer the monthly repayment to your lender from your salary. In this instance, your employer deducts it from your salary and pays you the remainder as your salary.
This loan finance solution comes with a wide range of benefits to both the employer and the employer. In turn, this is why it’s one of the most preferred financing options today. Some of these benefits include:
Choose Your Vehicle
This arrangement allows you to finance the vehicle of your choice. You can get that car you have been dreaming about easily through a novated lease. Even more, you can go on to finance modifications to that dream car under the same arrangement.
You Get Ownership
Under this arrangement, the vehicle belongs to you rather than the company or your employer. So, in case your employer terminates your contract of employment, you don’t have to worry that you’ll lose the car to your employer. It’s not the company’s car. Instead, it’s yours.
In such situations, you can continue repayment directly or re-novate the lease with your new employer.
You Enjoy Tax Advantages
Under this arrangement, you also get to enjoy tax advantages. This is because the payment for the loan gets deducted before your full payment is calculated and taxed. In turn, you’ll get to pay less as tax as the total taxable income is reduced by the earlier deduction of the loan sum.
Easy to Access
Another advantage of this arrangement is that it allows you to enjoy easy access to the car of your dream. You enjoy quick approval of the loan sum. It’s also structured to ensure that you enjoy optimum budgeting regarding the loan sum’s repayment throughout the loan arrangement.
You also enjoy transparency with this finance solution. You get to access a personalised portal that allows you to monitor your repayment activity regarding the car. So, you can easily know how much you have repaid at every time. You can also know the outstanding repayment in respect of the car.
You Enjoy GST Savings
Another advantage that comes with this finance option is GST savings. This is because novated leasing allows you to finance the ex-GST price. As such, you find yourself saving 10% already. Even better, you won’t need to pay GST on other running costs throughout the lease, which allows you to save more money.
You can contact us for more on novated leasing.