A novated car lease is an increasingly popular way among company employees to finance their own motor vehicle. This form of financing method allows businesses to lease vehicles on behalf of their workers.
A novated lease contract is a simple agreement wherein an employee can use a vehicle for a fixed period of time at an agreed amount of money which is approved by his employer. This is a three-way agreement in between the employer, employee, and the lease company. If you are an employee to who wants to drive a brand new car through this financing method make sure that you and your employer pick the best novated lease company who will be able to provide you the pride of driving a great vehicle for work and play.
A novated car lease is an attractive way to own a vehicle. This type of car acquisition can provide numerous benefits to the leasing company, employer, and the employee. Below are some of the benefits of a novated car lease:
ON THE LEASING COMPANY
• Leasing your fleet of vehicles can generate income. A leasing company is able to yield huge profits by letting people rent their vehicles for a fixed period of time at a fixed monthly rate.
• At the end of the lease contract, the lease company still owns the car and will be able to lease it to another client.
ON THE EMPLOYER
• This is great way to attract people to work for you and your company.
• A practical way to provide vehicles to your employees without capital outlay. This is cheaper and requires little or no out-of-pocket cost.
• Leasing a car for your employees is cheaper than having a huge fleet of company cars which you will have maintain.
• It is a great way to provide additional benefits to your employees.
• Liberates you from the worry of the future value of company cars since leased car can easily be disposed and replaced.
• When the employee decides to quit his job, the responsibility of the lease contract is passed on the employee.
• Reduced liability of having to pay or maintaining a fleet of company cars.
ON THE EMPLOYEE
• You will have to freedom to choose the type and model of vehicle you want to drive.
• Provides you the pride and confidence of having to drive a brand new car with the latest safety and comfort features.
• You will be able to drive a brand new vehicle very often. When a lease contract ends, you can renew a brand new lease contract and drive a newer car model.
• Monthly payments are cheaper than car loans.
• Liberates you from the routine maintenance and repairs.
• You will be able to drive a car which is always under warranty.
• Protects you from the sharp depreciation of a car. You don't have to worry about the future value of the car as you can simply return it at the end of the contract.
• You will be able to have an access for huge discounts when your employer leases a huge fleet of vehicles.
• Saves you a significant amount of money due to significant income tax savings.
• You will be able to drive a novated car for business and pleasure unlike a company car which is restricted for work-only purposes.
• The lease contract is transferable from one employer to another once the employee decides to transfer jobs.
For a best car deal make sure to choose the best novated lease company who can provide you the chance of driving a car with the least cash outlay. Leasing a car can be huge financial decision to make. Make sure that a novated car lease is the best option for you before making a final decision.