Are you looking to own your first car depending on your paycheck? Have you been dreaming about owning your first car but don’t know how? Consider novated leasing Adelaide. This is a scheme that allows you to make a settlement or agreement with your employer and the car company that is willing to lease out their cars. Simply put, novated leasing is a car loan type of application that allows the employees to own vehicles through their company. It is common in Australia, where your company acts as your guarantor.
Even though there’s common belief that novated leasing is only available to the executive employees of a particular company, this is not the case. As long as you have job security within the organisation, you could also benefit from the scheme. Like any other type of car loan, this scheme’s payments are made in instalments. The cost of the repayments that you will need to settle depends on the kind of vehicle you want, the model, the year of manufacture, and the period within which you want to repay the instalments.
This particular scheme has gained popularity with time due to the benefits that are associated with the policy in the long run. One of the benefits that you would enjoy is a reduction in your taxable income. This is because instalment charges are spent on pre-tax income. This means that you are taxed after the instalments have been deducted from your salary, thus reduced taxable income.
The other reason why this type of car loan agreements is well-liked is the fact that they are pre-termed policies. Simply put, they are policies and contracts that run for short periods of time. Mostly, they do not exceed five years. Once the car lease is over, you can then decide to renew or terminate the contract.
Another reason why they are popular is that they offer complete flexibility. After finishing on your initial lease contract, you can decide to renew your lease or take a new policy. This means you will have to upgrade the model of your vehicle. If you have been dreaming of owning a high-end car, you could take a new lease contract that will allow you to upgrade to the car that you want.
Novated leasing Adelaide is not a complicated procedure. You just need to consult your company HR department to know if they could offer you this scheme. It is important to consider your job security since you do not want to be laid off before you finish paying your instalments.