Best Novated Lease: How to Choose the Best Novated LeaseBest Novated Lease: How to Choose the Best Novated Lease
The best novated lease provider will be transparent about all fees. They should show your expected monthly fee, including all associated charges, and the residual value when your lease ends.
Novated leasing providers that excel are large and experienced enough to negotiate volume discounts from national supplier networks for you, saving on car prices, fuel, service fees, tyres, and glass purchases.
Tax savings
One of the primary advantages of selecting the best novated lease agreement is tax savings. Over three years, your vehicle’s operating costs (fuel, servicing, insurance, roadside assistance coverage, and registration) may be paid before tax is calculated and due.
Novated leasing provides advantages far beyond income tax savings; not only can you avoid GST on car and fuel expenses, but there may also be financial benefits from not paying GST when leasing vehicles, saving on taxes and maintenance expenses altogether.
Novated leasing allows you to choose a car that’s just right for your lifestyle and budget without losing income tax savings at the end of the lease. Also, upgrading to newer vehicles without losing income tax savings means you’ll always drive the latest models with all the safety and convenience features that manufacturers keep adding over time.
Flexibility
Some new leasing companies will send your application directly to one or two finance providers with higher rates and fees. In contrast, an excellent new leasing provider should be completely transparent about who they work with and which offers the most suitable rates.
Ensure your best novated lease company offers a comprehensive lender panel, can negotiate fleet discounts on new cars, and offers fuel cards (some providers earn rebates at certain gas stations). Your consultant should clearly explain their quote while answering any of your queries.
Novated leasing involves an agreement between you, your employer and a novated lease company. This method of purchasing can save on taxes while giving access to cars you want without paying full price upfront. Should you leave your job later on, convert into a regular car loan between yourself and the financier.
No hidden fees
A reliable novated lease provider should always be clear about their fees without hiding anything from you. They should give a straightforward quote detailing all fees (such as acquisition and lease-end disposition ) included in your monthly payment estimate.
Novated lease providers bring significant buyer power to the table; as they purchase thousands of vehicles annually, they can access discounts from car manufacturers. Furthermore, due to higher volumes and regular maintenance requirements associated with leasing cars, novated leases typically have lower service rates than standard car loans.
No commitment
Novated leases may seem intimidating for the unwary, but they’re an excellent way to get a car without risking your cash. Novated leasing companies tend to be large and specialised enough to negotiate volume discounts from national supplier networks for services like servicing, repairs, tyres, batteries and glass replacement.
Novated lease arrangements provide employees with a great way to save on car purchases, insurance premiums, and administrative fees. Furthermore, quality novated lease providers ensure that your novated lease residual is lower than its value when it comes time to pay it back at the end of your agreement.
The good thing about a novated lease is that you can choose any car that suits your lifestyle and business requirements. It is a common misconception that novated leases only cater for business cars, but this is not the case at all. It is also a good idea to choose a second-hand car that you are confident will have low kilometres as this can be very economical.
The biggest benefit of a novated lease is that it can potentially save you up to 10% of your finance payments and running costs if you have the right arrangement with your employer. It can be a huge saving, and you may decide to go with a novated lease, an easy one. However, suppose you are planning to change jobs regularly or may have long periods of unemployment. In that case, it is worth considering whether a chattel mortgage would be a better option for you.