One very peculiar aspect of an employer-employee relationship in Australia is where the employer leases a car for an employee at the employer’s own expense. The employer and employee enter into an arrangement with those entities providing car finance on the Central Coast and the arrangement is known as a novated lease. This arrangement as a form of car finance is one of the most preferred ways for employees to own and maintain cars.Under such arrangement known as a fully maintained novated lease explained, the employer obtains a car on loan for the use and ownership of the employee and takes up the responsibility of making the monthly payments and also operating expenses such as fuel, insurance, registration and such; and deducts this amount from the employee’s pre-tax income.
There are several attractive benefits of this type of arrangement for both the employers as well as the employees. In order for you to be sure that you are getting the deal that is good for you, however, it is always advisable to compare the loan options that you have at hand. With a tool known as the car loans novated lease calculator, where you are to input some very basic information about your state, type of car, type of novated lease you are looking at and the length of the lease etc. you can get a clear idea as to how the whole thing is supposed to work out for you and also check how much money you will end up saving and such other things that will help you decide what loan option gives you the best deal.
