Novated Lease – An Advantageous Agreement

Novated lease agreement is specifically an Australian concept. In other countries it refers to the condition where a car lease is reassigned from one party to another.

Novated Lease Explained

A novated lease is a contract (called a novation contract) between 3 parties. These are:

• You (the member of staff)
• The car finance party (or lease company) and
• Your company

In short, the way it works is along these lines. You (the employee) take part in a contract to rent a car from a lease company. Your boss then is in agreement to capture the accountability for making payments. These payments are usually made out of the workers pre-tax wages (thus, the term salary sacrifice).

Upon termination of service, the accountability for the lease falls back on the worker (i.e. you).

There are 2 different types of novated leases:

• Novated finance lease
• Novated operating lease

Novated Car Lease Elements

• The lease is taken out in your name; your manager signs a novation contract taking on reimbursement duties.
• Buying a car through a novated lease means you won’t have to make use of your cash flow to fund the car
• In the affair, if you change companies the vehicle still remains yours.
• Your boss compensates the car leasing payments directly to the car finance company.
• Offering the workers a car lease is easy and company’s balance sheet is also not affected by it
• You have a complete choice on what you want to buy and where from

Novated Car Lease Advantages

• You have the use of the vehicle without planning for the reimbursements.
• You can buy the vehicle, devoid of giving any deposit or the botheration related to the process, too
• The novated lease contract is arranged in such a way that in the process if the employee leaves the company; the company is not left with the trouble of a car which is of no use or is old.
• There are many tax benefits headed for the company with the Finance lease.
• The employee can make all the choices they want to customize their car lease agreement. They can select the color, accessories etc.

Car Finance Calculator - A Device To Ease The Finance Process

Car finance calculator is one of the finest tools that can assist in making a decision on whether you can acquire a loan or not. On the other hand, if you have sufficient funds to buy a spanking new vehicle, then it is perfect to steer clear of the interest linked with the car finance.

Before acquiring any type of loan, be it personal, business or a cheap car loan, it is vital to search for the finest car finance company. And it is very much significant to consider several aspects that can be of assistance to you in choosing it and those are:

• Firstly, the interest rates that the bank or car finance company will levy on you.
• What are the costs as well as charges that you have to compensate?
• If ever you are unable to compensate it earlier or in time, then what would be the consequences?
• Will there be any concessions if ever you compensate it earlier than the owing dates?
• How long will it take to process the car finance?
• Are you entitled to acquire the loan?

There are lots of queries that we have to answer before we take any actions in getting the car financed , and a car finance calculator is one of the means to help us answer these issues and come to a decision on whether we should go for it or not. It can help us to work out the expected interest rate that we are supposed to pay, conditional on the cost of the vehicle. It can moreover provide us the expected concessions that we can obtain and can also make a distinction between the savings that we can acquire from acquisition straightforwardly from the store and from the car finance company.

Car finance calculator can help you in staying away from additional charges, as a number of car loans companies include some extra fees or charges that are added to the precise amount of the vehicle that you intend to buy. Examples of these are the charges for registration, insurance, accessories that are incorporated during the time of your acquisition etc.