This car finance option involves a salary sacrificing arrangement between you and your employer. They commit to taking on the repayments of your car finance, deducting from your pre-tax income, which has potential tax benefits for you. Essentially, the lending institution retains ownership of the car, which you have the option to buy at the end of the novated term, generally 3 to 5 years.
The benefits of a novated lease can be,
- Accessible on most salary levels,
- Can combine finance and running costs into one easy payment,
- Maximise tax savings,
- Option to lease a new or used car.