Details about Novated Leases in Auto-Financing
Car ownership is one of the most important things in the lives of most people in the world today. It is not as good to be moving around in cabs and buses as it is to drive yourself. When one has their car, it is not only more convenient but also gives an individual a sense of status when they are in a society. Buying a car can be an expensive deal, and it takes time for some people to get there. Having cash at hand makes it easy for one to make a car purchase. Car loans make it possible for most people to be car owners sooner than they are able, as they manage to get quicker finances. Getting a car loan approved is never assured, and it can be quite a long process. The availability of novated leasing with cars has simplified the process of car ownership for most people. The novated lease path requires you to get another party into the deal besides the salesman. In this case, the third party which could be your employee come in and takes responsibility for some of your leasing obligations. This means that they will be a part of your leasing process. In as much as this is an ideal path to use when you need a car, it is also not very familiar to a lot of people. Here! This site is elaborate on all you need to know about the novated lease, click here for more about this service.
It will be up to to your novated lease financier to take care of the lease payments when you sign the contract. The payments will be done by your employer, but you will again pay through your work. Your monthly payments will not remain the same, because your employee will deduct these payments from your salary. If you change jobs, you can decide to have the payments transferred to your new employer or you pay from your pockets.
You cannot be the sole owner of the car when you are still paying for it. You can change cars, however, in case you are happy with what you get, you can keep it once you are done with the payments.
It is the convenience of getting a car without enough finances that most people go for when picking the novated lease payment option. Also, it can be cost-effective since some employers may decide to cover for the insurances; you can also be saved from goods and services tax payments.
You will either lose the car or end up paying for it from your sources which can at times be difficult.