Why Novated Leases are the Best Means to Purchase a Car?

When it comes to leasing a car, many Australians believe a novated lease is the best option. The reason this program works so well is because it is set up with a significant tax deduction from the government. When you consider all the facts, the novated lease turns out to be a great deal for both you and your employer.

Why a Novated Lease Helps You
When you enter in a novated lease, your employer owns your lease agreement. It is his responsibility to make the lease payments while you work at his company. He will deduct your lease payments straight out of your salary before you receive your paycheck. This money comes out before tax which means all your lease payments are tax deductible.

Depending on the way your lease is setup, you can save even more money. Some novated lease programs not only let you deduct your lease payments, but also are your car maintenance and registration expenses throughout the year. This means you get help from the government to pay for nearly everything related to your car, not bad at all.

Why a Novated Lease Helps Your Employer
You canít take out a novated lease without your employer being involved. Itís pretty clear how you come out ahead, but why should your company make this extra effort? First of all, this program lets your employer give everyone a potential pay raise without spending any extra money; the entire perk comes from the government. This will help keep morale high and attract more talent.

Another benefit is that a novated lease is basically risk-free for your employer. If you quit your job, your lease gets transferred right back to you and your employer is no longer involved. Lastly, this program is very inexpensive to get started making it one of the most cost-effective work benefits in Australia. If your employer isnít sold yet on novated leases, make sure he knows this info and heíll change his mind in a hurry.

Check the Math with a Novated Lease Calculator
Does this program sound too good to be true? Scepticism is understandable, there are many people out there making false claims. To be safe, you should go ahead and check out the math yourself. With the Platinum Direct novated lease calculator, you can easily make this calculation.

A novated lease calculator is a free program online. You just need to enter in a few pieces of information like the type of car you want to lease and the purchase amount. The calculator will show you how much you will spend per month under a novated lease so you can see exactly how much of a tax benefit youíll get.

Thereís a reason why novated leases are considered the best means to purchase a car. Take a look at the novated calculator and see just how much you could save through this helpful government program.