Most people feel the need of being car owners today. Being your driver cannot be compared to any other means of automotive transportation. When one has their car, it is not only more convenient but also gives an individual a sense of status when they are in a society. Cars are not the most meager assets that one can invest in, they tend to take up a lot of one’s savings. One needs quite a huge sum of cash before they can think about investing in their dream car. Car loans make it possible for most people to be car owners sooner than they are able, as they manage to get quicker finances. However, getting loans is not a walk in the park, because there are a lot of things that come into play before one can get it approved. The availability of novated leasing with cars has simplified the process of car ownership for most people. The only way you can complete the car novated leasing deal is through a third party. In this case, the third party which could be your employee come in and takes responsibility for some of your leasing obligations. They are hence, an inevitable part of your process. Sadly, some people do not have a full understanding of how the novated lease works. Now, read more from this website, to discover more about the novated lease, check it out!
It will be up to to your novated lease financier to take care of the lease payments when you sign the contract. The payments will be done by your employer, but you will again pay through your work. Since they will be responsible for some of the financial payments in your car lease, you will have to pay them back in your salary. If you change jobs, you can decide to have the payments transferred to your new employer or you pay from your pockets.
What happens with novated leasing is the fact that you do not fully own the car during the leasing process. You can change cars, however, in case you are happy with what you get, you can keep it once you are done with the payments.
It is a quick-fix for your automotive needs, which is why most people like it. Also, it can be cost-effective since some employers may decide to cover for the insurances; you can also be saved from goods and services tax payments.
Lastly, losing your job means that you no longer enjoy the novated leasing, you might even lose the car.
