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Novated leases: Common myths and concerns

Jul 2nd 2015 at 6:35 AM

Novated leasing is a kind of deal that is much advantageous for all employees as in the current time, owning a vehicle is beyond just a luxury, it’s a necessity and if you are unable to lease a vehicle for yourself, a third party can help. Novated lease includes you, your employer and a leasing company. Payment for the leased vehicle is made by your employer after deduction of amount from your pre-tax income.

This kind of agreement is usually safe and benefits all still lot are still hesitant simply because they are afraid. Unfortunately, they are aware of some commonly spread myths, which shouldn’t have been there in the first place. To help you take a wise step ahead, here are some of the common myths associated with novated car leases and a proof on why they would continue to be just myths.

Myth1: Novated leases don’t actually work!

Novated leasing does work and the proof is that most of the Australian workers today have successfully managed to own a vehicle of their own choice majorly because of these smart agreements. These deals are simple in nature and come with many employee tax benefits assisting them in fulfilling kinds of vehicle related requirements and lifestyles they have always looked up to.

Myth 2: Novated leases are suitable for higher salary employees

You don’t always need to earn huge pennies to avail these kinds of leases. Novated leases make payments on only the kind of vehicle that can be managed by you. The deal starts from you – which means from the vehicle on your own favourable terms. So, no urgency to own a highly paid car; just own a vehicle and start planning on these loans! Novated Lease Calculator can help before you plan on a Novated Lease Quote Melbourne.

Myth 3: Novated leases are complex and troublesome

Novated car lease is not complicated; rather they are very simple. When it comes to financing a car, nothing can get easier than this. You can get insurance that are designed and tailor made particularly for your own car financing status or situation. Additionally, you may also receive some interesting discounts on tyres and maintenance. Most importantly, novated vehicle leasing is also transferable and this means when you change the employer, it can get carried away or transferred from one to the other. As a result, you can continue with this deal without much hassle.

You also don’t need to run your vehicle for miles and miles thinking that your eligibility of getting this lease will be applicable only then. You save enough on the income tax bracket. Actually, if the wiser advice is to be given, owning a car through novated lease is wonderful but just don’t let the misconceptions and myths discourage you at all. You will only need to locate the best leasing company that can be worth your efforts and offer you the best rates encouraging you to purchase the best car suitable for your needs and budgets. Start exploring or get started with a salary package calculator online.


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