The world is changing and many things are changing with it. Car finance online companies are changing the way that we lease cars. A method that is becoming popular in Australia is called the Novated Lease. The Novated Leasing is a way of using your salary from your job to pay for your car payments. The employer agrees to pay the car note from pre-tax dollars garnished from the lessee’s paycheck every month. The employee is still paying for the lease car, but the employee is no longer paying taxes on the money that is used to pay for the car note every month.
Car finance online companies are making it a very convenient way to save some money and still have a great car. The Novated Lease plan involves an agreement from the employer, employee and the car finance online company representative. The employer pays the car payments for the employee with the employee’s pre-tax dollars and provides the car to the employee as part of their salary arrangements. The agreement is only in effect during the term of employment with the current employer who has assumed the responsibility of making the car payments on behalf of the employee.
There are good reasons for the employee and the employer to consider offering and/or entering into a Novated Lease agreement with a car finance online company. The benefits are different for each involved party, but everyone gets something positive out of the experience. It is a good positive solution for everyone.
The employees get a choice of the car to suit their individual needs and personality. The employee gets the control of the car including its upkeep and maintenance needs. The employee gets the portability to be able to assume the lease if they do have to change their jobs for some reason during the term of the lease agreement. It is paid with pre-tax dollars to save the employee some money. The employee retains the equity in the car and not the employer.
The employer has no residual risk. The employer is not stuck with an extra car if the employee changes jobs. The employer can offer a better salary package with more pre-tax benefits to their prospective employees to get the employees they are really searching for. The employer will reduce the amount of time and paperwork that is used to monitor the activity of company cars. The car finance online company can even do the most of the paperwork for the employer and save them time and money.