No one likes to involve a middle party in any situation unless you’re working on a novated lease. Unlike traditional vehicle financing, you invite a third party into the mix when you go through this kind of process. It’s no longer you and the lender. It’s you, the lender, and your employer. You save money, get you get a new car, and some of the responsibility of this entire process is taken right off your shoulders. It’s a win-win situation for you, and the process is simple.
Your Employer Signs For Your Car With You
Your novated lease is nothing more than a salary-packaged vehicle. You get to drive a new car off the lot with your employer’s help. During the financing process, you decide you want to go through the Stratton Novated Lease process, your employer signs off on things, and you benefit significantly in a financial sense.
Your novated lease is financially beneficial to you because you pay for it with your pre-tax income. Your employer takes your car payment, maintenance costs, and every other expense associated with owning this lease for two, three, or five years, and they pay it for you with your pre-tax income. Your regular car payment is made with post-tax income. This means you use your money when you get it from your employer. You pay the same amount of tax, you have the same amount of taxable income, and you don’t benefit from this.
When you vehicle payment is made with your pre-tax income, you end up with more money in the bank because your post-tax income isn’t touched to make your payment. Now your taxable income is lower, which might save you significantly when it’s time to pay your taxes.
Your employer is also responsible for making your car payment on your behalf every month. This means you get to keep the car in your name, drive it how you see fit, and you never need to worry your vehicle payment is late or forgotten. It’s great for your credit.
Do I get to keep my car?
A novated lease is still a lease. You either keep the car and pay a pre-determined amount of money to keep it when the novated lease payments are up, or you trade it in for a new lease. You get to decide, but you also know you saved a lot of money driving this car over the course of your lease.
Your lease is yours to keep, trade in, or sell when you are ready. It’s a great way to save money and work on your finances, and it’s why many people take this option and go with it. You can really benefit your financial life with a situation like this one.