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What is a Novated Lease?
A novated lease is an agreement between you, your employer, and a finance company.
A novated lease is an agreement between you, your employer, and a finance company.
Novated leases offers tax benefits and simplified management of vehicle expenses.
Residual value is the estimated worth of the car at the end of your novated lease term. The residual value is based on various factors, primarily set by the Australian Tax Office but also includes the initial purchase price, its expected depreciation, and general residual value guidelines from your leasing provider.
Benefits of a novated lease include tax savings, convenience, flexible car choices, no hidden costs, and more.
If you have a novated lease and your company is undergoing changes such as a merger, acquisition, or reorganisation, it will impact your novated lease.
Some signs that it’s time to upgrade your car include rust appearing, odd smells, unusual smells, exhaust smoke, and more.
Considerations for a novated lease include tax benefits, flexibility, budgeting, employer involvement, end-of-lease options, personal circumstances, and employment stability.
Not only do electric cars solve increasing environmental problems, but owning or leasing one has many other advantages.
Pros and cons of a novated lease compared to buying a car outright.