Novated Lease for Your Vehicles Financing | Online Payday Loans

Recently, novated lease becomes popular in vehicle financing. It combines many features of traditional forms concerning car finance in order to give more benefits for employers and employees. A novated lease is actually an agreement which is conducted by three parties that it is called a three-way agreement: yourself as the employee, your employers, and the financier in which the amount of repayments are determined by the employer. If it is compared with other leasing structures, repayments which are offered by novated leases give you more flexible and more calculable term, interest rate, the amount of money that is borrowed and the remaining payments.

Sometimes, you might find that it is difficult to search novated lease calculator because you are newbie in this field. It might happen because your employer offers car salary sacrifice or salary packaging. By using novated lease calculator, you will be helped to calculate your novated lease according to your ability whether you will pay monthly, fortnightly, or weekly repayments. The structures of calculation that is usually offered by novated lease calculation including the term of loan (the length of repayment) whether in years or months, the amount of money that is borrowed, the rate of interest and the remaining value (balloon value).? You have to know those terms in order to determine which repayment that suits your car salary packaging.

There are three kinds of novated leasing: a novated finance lease in which just the vehicle which is leased, a fully maintained novated leased in which the vehicle and the costs it has are covered into the lease, and a fully maintained novated operating lease in which the vehicle and the costs it has are covered into the lease and the remaining value risk is guaranteed by the lessor. The two-last types of novated lease are maintained by a third-party lease management company.

There are advantages of having novated lease with you such as you can save income tax which is significantly potential. Then, you also can save the GST that usually given on vehicle expenses and you will have access to certain amount of discounts if you as the employer have abundant of vehicles under your scheme. The other advantage is that you will have more flexibility in choosing a car and the vehicles are staying with the employee and it can be relocated to a new employer. The employer also has advantages by using novated lease such as the increase of salary to the employees, the vehicles are on ?off balance sheet? and their business will not get any risk because of the vehicles.

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