Increasingly, novated leasing is getting more popular to a lot of people for its being the most cost effective and convenient way to own and run a vehicle. Many do not consider even the most affordable option available to own a car, just because they consider it depreciating asset. However, novated leasing is trending to be a useful alternative that collectively provides even different practical benefits. Overall, novated lease agreement is taken under the employer lease’s obligations and rights under lease. The transfer of obligations and rights agreements is followed with deed of novation between finance company, lease, and you. If you also want to have certain benefits and savings then track LeaseXpress website for details.
The novated leasing is mainly categorized into two types as full novation and partial novation. The agreement of lease can also differ according to clauses it contains. For most, the major reason for availing novated lease is about the tax benefit while at the same time being beneficial for both the employer and employee. Many companies switch to novated lease as it considered one of the best ways for rewarding employees, along with some extra addition to salary package.
Understanding about some benefits of novated lease
- Novated lease offer enables to provide simple and cost effective method that certainly makes company to be more appealing when it comes to staff recruitment and retention.
- This leasing system is also useful to lower income tax and cutting taxable salary that would be due all around the year. The designed system lets the employer to take payments for car while even keeping the pre-taxable salary of the employees.
- It may also be considered a practical alternative for owning fleet of vehicles, as it may help to remove lots of risks on the company. In case one leaves company then future payments or lease obligation would be left with them.