Novated Lease Pros and Cons

The Pros and Cons of a Novated Lease

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If you have been talking to your employer about the option for taking out a novated lease so that you can acquire a vehicle to drive, you could be wondering if it’s the best idea or not. You might have heard about some of the pros, but you could be unsure of all of the advantages and disadvantages that go along with a novated lease program. These are some of the things that you should know about a novated lease. Then, if you look at the pros and cons, you can help determine whether or not one of these leases might be right for you.

The Pros

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:

  • You can drive a brand new car, which you might not be able to do if you have to finance and purchase a car on your own. This means that you can drive something that has the latest and greatest features and that is shiny, new and attractive.
  • You can take advantage of the fact that you can use your pre-tax income to partly pay for your novated lease payments. This is one of the few ways that you can use your pre-tax income and decrease the amount that you have to pay in taxes.
  • Generally, everything is included in these lease programs. This means that you will not have to worry about paying separately for car maintenance or other expenses, which can make things a whole lot less stressful.

The Cons

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.

  • If you lose or quit your job, you will have to return the car or pay out of pocket for the lease.
  • You will be leasing and not buying the car, so you will have to return it eventually, unless you choose to buy it at the end of the lease term.

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.

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