A novated lease is a vehicle lease agreement between you, your employer and a finance company. Novated Leasing is also known as car salary packaging or salary sacrifice.
Entering into a Novated Lease means that your employer agrees to pay your vehicle lease payments out of your pre-tax salary. Paying with pre-tax dollars allows your income tax to be calculated on the reduced total of your salary or wages minus car payments. Your disposable income is greater than it would be if you were paying for the same vehicle with post-tax dollars.
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If Novated Leasing is a benefit offered by your employer, you're able to choose the vehicle you wish to drive without the restrictions that typically apply to a company fleet.
Once you've purchased the vehicle and made the finance arrangements in your own name, you then enter into a Novation Agreement with your employer.
A novated lease is a great option if are permitted to include a vehicle into an employee's salary packaging. The employer can pay a portion of your lease expense from pre-pay tax income, subject to approval. It may provide some further tax benefits that your accountant can explain in detail.
Glynn Finance has access to a panel of over 20 lenders, including the big four banks. Our online mortgage calculator provides a mortgage repayment estimate based on loan amount, indicative interest rates, loan term and structure. The tool also lets you compare the rates and features of various loans.
For a more precise estimate of your borrowing capacity contact a Glynn Finance mortgage specialist today.