How a Novated Lease Can Save You Money
If you are like many people, you might always be looking for ways that you can save money. One option that you might have heard of but that you might not know much about is a novated lease. This is a specific lease arrangement in which you work with your employer to lease a car. Unlike with a traditional car leasing arrangement, however, you will not be the one who makes the payments to the lender. Instead, your employer will make the payments on your behalf, and the money for the payments will come out of your pre-tax income. These are a few reasons why this type of arrangement might save you a lot of money.
Avoid Paying More Taxes Than Necessary
A lot of people find that a significant amount of money comes out of their paycheck each and every pay period. If you are one of these people, you might be wondering if there is a way that you can reduce the amount that you have to pay out in taxes. One such option is by choosing a novated lease https://www.strattonfinance.com.au/novated-lease/novated-lease-salary-packaging.aspx
As mentioned above, the money that is used to pay the payment on your novated lease will come out of your paycheck. However, if you were to make your own lease payments, the money that you would use to pay your payments would be taxed before you ever received it. In fact, this might be the type of situation that you are in right now with your lease or car loan payments. By choosing a novated lease, you will not have to pay out as much in taxes as you do right now. Depending on your income level, this can save you a significant amount of money each year.
Avoid Worrying About the Cost of Car Maintenance
There a couple of different types of novated lease options that you can choose from. Many people find that choosing a novated lease that includes vehicle maintenance is the best step. As you might already know, worrying about things like oil changes can get costly and can be a major pain. Plus, you might find that you have not always budgeted for these things like you should. The good thing about a novated lease that includes maintenance is the fact that the maintenance costs are covered in the cost of the lease. This means that you do not have to worry about them at all. Not only can this save you a lot of money, but it can save you a lot of hassle and stress as well. With this type of arrangement, all you really have to worry about is driving the car. The rest is taken care of by your employer.
If you are looking for ways to cut costs in your budget, looking into this type of lease arrangement can be a wonderful option. If you talk to your employer or someone from your company’s human resources department, you can find out more about this type of lease.