Novated Lease

Financing Through Novated Lease

Ever wondered what a novated lease is? It is a car lease that is connected to your paycheck and deducted monthly from your pre-tax salary. Your employer oversees this activity. You can transfer the service to your new employee if you change your job.

The contract is generated in your name, and throughout the length of the contract, you retain full control of the leased car. That employee at your place of work, who keeps changing her car yearly and has you wondering how she pays for a new car every year on a salary similar to yours, most likely makes use of a novated lease. 

Novated leases are easier to work with because they afford you your car before your taxes are subtracted. If you operate a novated lease service, you can access a service that allows you to pay for your car before tax is deducted from your salary. This reduces the fee you will have paid for your car and your taxes because the lease is deducted from your tax and your salary. 

We do not offer located lease services. However, we collaborate with brokers who do. Here are some of the reasons a novated lease will be perfect for you:

The Vehicle Of Your Choice

You get to select the vehicle if your choice for lease. It can be a sedan, SUV, sports car, or any other vehicle of your choice. You also get to decide if you want a new car or a second-hand car. This can prove to be more cost-effective than buying a car. It even allows you to switch to a different make or model on a whim. It saves you the stress of selling your old car to get a new one. This option is available to everyone. Salary earners earn a lot of money or earn below the top marginal income tax rate. The novated lease plan does not make monetary discrimination. 

Vehicle Servicing, Repair, and Maintenance 

As opposed to owning a car, leasing one is more wallet-friendly. This is because your novated lease covers all major expenses. When your car needs to be serviced, which ordinarily can be quite costly, you don’t have to worry about that because it is being taken care of by monthly novated lease brokers. Damage done to the is also taken care of by your novated lease. Regular maintenance of the car is also part of the package offered by novates lease users. It is a method of making temporary ownership of a car easy and affordable. 

Vehicle Fueling

The monthly cost of fueling has already been covered in your located lease contract. You don’t have to worry about running out of fuel as long as your novated lease is active. 

Insurance

We connect you with the best novated lease car brokers, who in turn connect you with the best car insurance companies in Australia. We ensure that you get the best insurance deals that will favour both you and the insurance companies we collaborate with. Our aim at Loconut Car Brokers is to leave you satisfied in all matters relating to your car deals. 

Roadside Assistance 

Roadside assistance is provided to you when your car has broken down and left you stranded. The services include:

  • Changing a flat tire.
  • Jumpstarting a car.
  • Towing a car.
  • Even assisting you when you’ve been locked out of your car.

Your car manufacturer sometimes covers these service costs. You cover the services not covered by your car manufacturer in your novated lease. Everything has been designed to d to make things easier by foreseeing problems that might come up along the line and providing solutions to them. 

How to Activate a Novated Lease

This is as easy as taking a walk in the park. Your novated lease brokers require an agreement with your employer that will help them calculate salary reductions. You will, of course, be aware of all the agreements being made, and if you’re not in support of the terms, you can choose to revise them. Ensure you consider all the underlying factors such as the interest rates, the car’s residual value, management fees, and the fees attached to the end of the lease. 

Once the terms of the agreement are settled, it is time to proceed to the fun part. Selecting the car of your choice. The novated lease brokers we work with have a wide range of cars you can choose from. These cars can be brand new or second-hand cars. Choose a car you will be comfortable driving and enjoy your renovated lease. 

Why Should You Choose A Novated Lease Plan?

Novated lease plans allow you to pay less income tax. A novated lease is one of the ways of financing a car without actually taking a loan. This is because the lease payment is taken from your salary before your taxes are deducted. Our third-party brokers have access to multiple car manufacturers and discounts resulting from buying cars in large quantities, allowing them to serve you by discounting their products and giving you the best prices. 

All the activities involved in buying a car, such as shipping, stamp duty, and car registration, have been taken care of. They have saved you the stress of finding an insurance company and a maintenance and servicing company. 

Being a trusted company, we protect you from shady car dealerships who use bait and switch and other cheap tricks to sell vehicles that are not durable. We recommend third-party novated lease brokers who are trustworthy and will give you the best deals.  It might seem like you’re paying a lot for a temporary car, but if you factor in all the long-term expenses such as fueling, servicing, regular maintenance, and all other cost factors, you’re not. Contact us today, and let us show you a credible way to finance the car of your dreams.