Cars have become one of the most important parts of our lives and they are considered as one thing that makes us the most effective, by helping us reach places in fast and efficient fashion. The importance of having a car becomes much clearer when you enter into the professional field, especially when you work in sales and marketing field. You may have to visit the clients occasionally for business meeting and presentations, and you can’t simply rely on public transport for that. In this fast paced environment where businesses are trying to do anything and everything to ensure they are one-step ahead of their competitors, it has become common for employers to provide the car leasing facility to their employees. This eventually benefit the employer as the employees are able to sort out the issues in the least amount of time and meet more and more clients. Furthermore they can pick and drop their children easily from school to ensure the least amount of time is wasted in such activities. Such lease is known as Novated lease, we will try to cover it in a bit detail below:
Novated Lease is actually a 3-way agreement which includes Employee, Employer and the Leasing Company. The vehicle is directly leased to the employee and he is bound to make to make the payments of that lease from his salary. The amount is deducted from pre-tax income which gives additional advantage to the employee. This arrangement benefits all parties involved. Yet there are some misconceptions floating around regarding Novated Lease, which you should avoid. Here are just a few of them:
1- Novated Lease Simply Won`T Work: Millions of people around the globe feel that these arrangements don’t simply work, and even if they do, they are not as beneficial as they sound. Whereas in reality, thousands of employees in Australia have got their hands on their desired car with a very low down payment and affordable monthly installment.
2- Novated Lease Is Not For People With Low Salaries: This is absolutely wrong; in fact the whole concept of Novates Lease is based on the fact that people with low salary can’t afford to buy the car themselves. These arrangements make the monthly installments a lot easier to pay which makes it perfect choice for people with low-end salary.
3- Higher Miles = More Benefit: Again this is a very wrong concept, in fact you will have the same advantage of your Novated lease if you take your car to drive to your office only. Miles has nothing to do with how much you pay per month in your lease.
4- There Are Serious Complications: Though these leases may sound strange to you initially, but once you get the grasp of the concept, it becomes the easiest form of lease to keep going. You can even switch the jobs keeping the same lease going on.
A novated lease can be a great way to get your hands on your desired card without having to pay a fortune. However, like any other leasing, it is critical to find the most suitable and reputable leasing company to ensure that everything goes smoothly between all three parties.
Simon Hopes is a business consultant and a freelance blogger, he recently bought a car with the help of fincar car financing company which offers great deals for financing any type of vehicle.