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Published On: Thu, Jan 9th, 2020

Understanding the power of novated leasing

We live in a brand new era when it comes to car rentals. Gone are the days where there was one set approach to leasing a vehicle. Today, there are many ways to approach leasing your next car. Consider the approach you can take to leasing a company vehicle, for instance. When it comes to organising and maintaining company vehicles, it is fair to say that it can sometimes be something of a task to accomplish and maintain. Not every company offers an included company car, and if you are buying a vehicle for personal purposes, then there is little to no chance that your place of work is going to offer to include your vehicle in your salary package.

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Introducing the power of the novated lease

That is why the novated lease is so quickly becoming such a popular way to get your hands on your next car. Now, a novated lease is still a relatively fresh concept, and it goes without saying that it can be challenging to understand exactly what a novated lease is when you have never encountered the term before, much less come into contact with anyone who knows the power of a novated lease. Even so, novated leases are powerful, and they are continuing to become more and more so all the time. Not to be confused with a personal loan, a novated lease is more convenient and more efficient in multiple ways. So, what are the key differences between a personal loan and a novated lease?

Key differences between personal loans and novated leases

Personal loans generally do not provide fleet discounts or tax savings, which makes the personal loan not only pricey to pay back, but more expensive on the whole, because of the running costs being charged to the driver at full retail price plus the GST. Novated leases, on the other hand, are excellent options to utilise towards your next car because they offer all kinds of benefits including (but not limited to) fleet discounts, GST savings, and flexible and easy ways for the driver to budget. Ultimately, a novated lease is utilised to cover a vehicle that enables an individual to include the car of their choice in a salary package through their workplace. Obviously, this assists in optimising the salary package while simultaneously highlighting the flexibility and convenience of a novated lease.

What to expect from novated leasing in the future

Novated leasing is still a relatively fresh concept today, but heading into the future it is going to become more and more impressive. The whole point of a novated lease is to give employees a viable way to make the most out of their salary package and get a car of their choice that is coveted as part of that salary package. To this end, novated leases are incredibly successful, and they will likely continue to be going into the future. There is no denying that the craze surrounding the novated lease is just beginning, and there is a lot more where all this came from. 

Author: Ulyati Jaya

On the DISPATCH: Headlines  Local  Opinion

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