Date: 8 – 11 October 2012
LMB 5057 Darlinghurst NSW 1300 Australia
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First of all, you might want to consider some of the advantages of a novated lease. These are some of the things that many people like about acquiring a car in this way:
As you probably saw above, there are a lot of benefits that go along with a Novated Lease at Stratton. However, as with everything, there are disadvantages as well.
As you can see, there are both pros and cons that go along with a novated lease. However, for many, the pros definitely outweigh the cons, making it more than worth it to look into one of these programs. If you are interested, consider talking to your employer so that you can find out more.
By entering into a Novated lease, it means that your employer has accepted to pay for your car lease payments from your pre-tax salary. For your information, a regular loan is usually paid from your post-tax salary, which means it is deducted from whatever remains in your bank after tax. If your employers offer Novated lease as a benefit, it gives you an opportunity to choose the vehicle you wish to drive without any restrictions that are common to company fleet.
How Novated lease work
In a typical Novated lease agreement, you can pay for two to five years after which can decide to trade in your car for a newer model through a new lease. If you are stuck with a car loan and a Stratton Novated Lease consider the fact that a regular loan will have to be paid using your post-tax salary. It means that a Novated lease helps you to lower your taxable income.
A Novated lease is not the same as renting a car. A Novated lease must involve you, your employer and the fleet provider. The best thing with Novated lease is that your vehicle running expenses are usually taken from the pre-tax salary. You can choose to lease a new or used car and select a lease term that can provide suite well to your budget.
What is included in the Novated Lease?
Through a Novated lease, you will have an opportunity to choose a car that suits your needs and can help you get the most attractive price on a network of suppliers. Novated lease also allows you to have a lease plan fuel car, which enables you to have cashless driving. This is because all your fuel is usually covered in your payments.
Your vehicle servicing is also part of the monthly payment. It gives you an opportunity to have your car checked by authorized and qualified mechanics to make sure that all the repair and maintenance is done at a reasonable price.
Car finance in Australia is simple for all residents with a positive financial life. If you make enough money to buy a car and make the payments, you have a good credit history, and your financial statements show lenders you’re able to afford a vehicle, you have no problem with the car finance aspect of shopping for a new vehicle. If you’re looking to make the buying process simpler, you should know a few things about car loan prior to going into any car dealership.
Line Up Car Finance Before
You have the power to go into a car dealership with your own finance lender lined up. You certainly aren’t required to use their lenders or their financing system, which makes life a bit simpler for you. If you find a lender you want to work with that’s offering better terms, call them and apply for a loan with them. Take your lender information with you to shop for a vehicle and let them handle the payment process. It’s simple, and it takes a lot of the work out of the car finance process for you.
Have Your Documents Prepared
If you’re applying for any type of car finance, have your documentation ready ahead of time. You cannot sit back and let this go undone. You must have the credit information needed to apply for car loan you should have financial statements available, and you should know ahead of time what kind of identification you need to apply for a finance. This helps speed up the process, and having all you need already on hand makes it easier for you to take home your new vehicle much faster. Learn more about Car Finance by Stratton https://www.strattonfinance.com.au/car-finance/options/car-loan.aspx
Know Your Budget
Whether you’re working with car finance lenders at the dealership or you have one of your own already lined up, you must know your budget. What can you afford to spend overall, and what can you afford to spend to drive your car and maintain it each month? Do not assume you know the answer to this, either. You don’t know until you do the math and check your financial statements. Knowing what you can afford helps you save time and energy looking at vehicles outside your financial capabilities.
You’re not required to apply for car finance at the first place that approves you. You can shop around with various lenders until you find the one with the terms that work best for you. It’s one of the benefits of being a consumer. Shop around until you find what you’re looking for and never settle.
Car finance isn’t fun, but it’s necessary if you do not have the cash you need to purchase a car from a dealer without a loan. Now is your chance to learn more about car loan and how it works for you so that you can make car shopping simpler. It shouldn’t be such hard work.