Car leasing, also known as novated lease, is a three-party arrangement wherein the pre-tax income of an individual is actually used to obtain a vehicle of his choice. For those who are not familiar with this option, everything may sound perfect or better yet too good to be true. Truth is, this specific arrangement in vehicle leasing is actually possible.
Depending on the leasing company, this option can actually be very beneficial when it comes lowering the taxable income of an employee. This type of deal offers great advantage to companies as they are able to make their employeesâEUR(TM) salary package more attractive.
If you are thinking of upgrading your vehicle or getting your own car, it is important that you find the best novated lease company in your area. These companies can actually help you find the best car lease deal in the market. For many employees, this option is a great way to get their hands on the vehicle of their choice. Apart from the fact that this option lowers your taxable income, it also helps you get the high-end model of the vehicle you wish to drive without necessarily breaking the bank.
How exactly does this thing work? What is car leasing? Before you can obtain the vehicle of your choice, these should be a company who is willing to finance the car you wish to own. After necessary approval has been accomplished, remember that this is not at all a free vehicle wherein you wouldnâEUR(TM)t have to pay anything. The company could get your dream vehicle for you but in return you would have to pay them on a monthly basis. What exactly happens is that you will pay a standard amount the finance company and this period will usually last within 1-5 years.
While you make that monthly payment to the lease provider, you should also know that the money you are paying is going to be deducted from the outstanding balance on the lease. At the end of the lease period, right after you have finished the term, you do have the option to own the car by paying its residual value. Generally speaking, the employee is given the option to either sell the vehicle or obtain it by paying the residual amount. While this may sound a good deal to you, you should know that this specific option offers more advantages. For one, it allows the employee to take home bigger pay and that is because of the fact that the rental payment is essentially deducted form the gross salary. Second, you also wouldnâEUR(TM)t have to worry about the running costs associated with the leasing because they are all included in the monthly payment.
By finding the best novated lease company, you could actually make great savings while owning your dream car. If you donâEUR(TM)t really have any idea how much savings will you be getting or how much is the cost of the salary packaging, you can actually go online and utilize a novated car lease calculator. With a leasing option that offers you greater flexibility in choosing the car of your choice and providing your fixed interest rate as well as monthly rentals, you will surely be ale to get your hands on the wheel of your dream car without breaking the bank.
Depending on the leasing company, this option can actually be very beneficial when it comes lowering the taxable income of an employee. This type of deal offers great advantage to companies as they are able to make their employeesâEUR(TM) salary package more attractive.
If you are thinking of upgrading your vehicle or getting your own car, it is important that you find the best novated lease company in your area. These companies can actually help you find the best car lease deal in the market. For many employees, this option is a great way to get their hands on the vehicle of their choice. Apart from the fact that this option lowers your taxable income, it also helps you get the high-end model of the vehicle you wish to drive without necessarily breaking the bank.
How exactly does this thing work? What is car leasing? Before you can obtain the vehicle of your choice, these should be a company who is willing to finance the car you wish to own. After necessary approval has been accomplished, remember that this is not at all a free vehicle wherein you wouldnâEUR(TM)t have to pay anything. The company could get your dream vehicle for you but in return you would have to pay them on a monthly basis. What exactly happens is that you will pay a standard amount the finance company and this period will usually last within 1-5 years.
While you make that monthly payment to the lease provider, you should also know that the money you are paying is going to be deducted from the outstanding balance on the lease. At the end of the lease period, right after you have finished the term, you do have the option to own the car by paying its residual value. Generally speaking, the employee is given the option to either sell the vehicle or obtain it by paying the residual amount. While this may sound a good deal to you, you should know that this specific option offers more advantages. For one, it allows the employee to take home bigger pay and that is because of the fact that the rental payment is essentially deducted form the gross salary. Second, you also wouldnâEUR(TM)t have to worry about the running costs associated with the leasing because they are all included in the monthly payment.
By finding the best novated lease company, you could actually make great savings while owning your dream car. If you donâEUR(TM)t really have any idea how much savings will you be getting or how much is the cost of the salary packaging, you can actually go online and utilize a novated car lease calculator. With a leasing option that offers you greater flexibility in choosing the car of your choice and providing your fixed interest rate as well as monthly rentals, you will surely be ale to get your hands on the wheel of your dream car without breaking the bank.