Novated Lease - Save Tax and Put More Money in Your Pocket. Are you an employee?
Do you earn a salary of $50k or more pa? Do you like driving a new or near new car? If you're still reading... Then... YES, a Novated lease could be just be what you need to save tax and put more money in your pocket. With your bosses help... In a couple of days you could have pen poised over an lease and novation agreement, that says you’re going to get a new car and your friendly Government will allow your car expenses to be paid (like your Super) before the line where your taxable income begins, and they won’t include the GST either. If that’s what the piece of paper says, you are definitely looking at a Novated Lease Agreement. Too good to be true? The ho-hum stuff... Cars under a Novated lease don’t even have to be used for work. If you want to see this concept visually, click the Calculator or for more good news, read the benefits for you.
What Does It Mean to Lease a Car? The best practice when buying a car is to purchase within your means.
Some dealerships will promote the use of leasing merely as a way to provide a lower payment for a car you typically would never fit within your budget. Yet for the right situation, leasing has it advantages. If you plan on driving the vehicle within your allowable mileage allowance leasing may be your best option. I like to look at leasing as the most transparent option. Leasing brings all of your true automotive cost like depreciation to the surface as your monthly payment. The first step is to figure out the monthly depreciation (MD), this is done by subtraction the residual (end value) from the purchase price including things like freight and PDI. Next, we figure out your monthly interest, now add the end value to the purchase price and times it by your lease money factor. Now having an understanding of the math, you can understand the basic benefit of leasing. The third real benefit of leasing is flexibility.
What Happens If I Fail to Make a Car Lease Payment? There are four options for making a car payment.
You may pay by mail, telephone or online in one of two places. Laws for Taking Over Car Payments. There are no specific laws against taking over someone's car payments, but there are important things... When a mortgage payment is missed, the best thing to do is to keep an open line of communication with the lender,... Leasing a Car Overview. Some of the sweetest car lease deals have dried up -- especially since automakers began offering zero-percent and low-rate financing to entice buyers.
Even so, leasing remains an attractive alternative to buying a new vehicle for many motorists. Half of all luxury cars are still leased, as are more than 20 percent of vehicles in general. For most consumers, leasing a new vehicle every two or three years would be more expensive than buying one and keeping it after the final payment. Other consumers are quite content to lease a vehicle they could never afford to buy, even if it doesn't necessarily save money. Leasing has two principal benefits: (1) You can drive a newer vehicle that is always under warranty and seldom needs more than routine maintenance, and (2) you can often get a larger, more luxurious, better-equipped car. Pros and Cons of Leasing vs. Buying a Car. Updated December 16, 2014.
When you are ready to purchase a vehicle there is a lot to think about. Once you decide what vehicle you want, the next decision is to determine financing. You may be thinking of leasing a vehicle instead of purchasing it. Leasing has its place in the auto finance world but it is not for everyone. Every person’s situation is different and people love options. Here we will go over some pros and cons of both leasing and buying a car. Leasing ProsLower monthly paymentsExcitement of driving a new car every two or three yearsAlways have the latest safety features and always have a warrantyYou don’t have to worry about trading and selling used cars The leasing pros list may not be very long however the list carries a lot of weight. continue reading below our video Loaded: 0% How to Calculate Car Lease Payments. How to Decide Whether to Lease or Buy a Car. What is a Novated Lease.