There are a number of different finance options available to car buyers today, though for some people all this choice can create a little confusion.
The options available include traditional car finance loans, normally spreading across a repayment period ranging from two to five years.
Essentially, you get your monthly repayment amount and then when the loan is settled the car is yours.
For many people though a novated lease is a more attractive proposition.
This finance option can produce significant benefits for employees when they arrange their vehicle finance through their employer.
Essentially a three-way agreement between you, your employer and the finance provider, novating sees the employer make the repayments direct to the finance provider on your behalf using your pre-tax salary.
This means that your taxable salary should be reduced by the repayments.
The result is you could be paying less tax.
Employers generally like the option of providing novated lease options to their employees because they’re often able to receive a tax-deductible expense as they’re responsible for making the payments direct.
A novated lease might also give you the option of being able to finance the maintenance costs of the vehicle too, why pay for these out of your after-tax pay packet?
There’s another big difference between a standard car loan and a novated lease, chances are you’ll be paying less per month for your new set of wheels.
With a standard car loan, as mentioned above, you pay the full amount of the loan, plus interest, over the term of the agreement.
But, opt for a Novated Lease by Stratton Finance and you’ll likely have lower monthly repayments because there’s a ‘balloon’ (or lump sum final repayment) at the end of the agreement.
This allows you to have the flexibility of selling or trading in the vehicle or paying the amount and keeping the vehicle.
Check out more details about novated lease at https://www.strattonfinance.com.au/ and while you’re there you can utilize their novated lease calculator to see just how much you could potentially save.
So, there you have it, a quick look at a couple of finance options that could be a good fit for you and your next new vehicle.