Owning a car is great, but even we’ll admit that outright ownership can come with a few headaches. First of all, the large upfront cost. It’s a big commitment spending that much money on a car, so you’ve got to be prepared for it. Second of all, if you feel like you’re going to want to upgrade in a couple of years’ time, the process of trading in is likely to cost you more than if you had a fantastic novated lease, in which you can easily upgrade by signing a new lease with a later model.

Novated leases are certainly one of the easiest ways to own a car – you just pay your monthly repayments and drive til your heart’s content… or until you get to your destination. Here are some of the reasons why if you want an easy option of ‘owning’ a vehicle, then a novated lease might be the go.

But first, what is a novated lease?

Yes, we’re glad you asked us that. A novated lease is when your employer agrees to lease a car on behalf of you, with the repayments coming out of your pocket. The great thing about a novated lease is that the repayments come from your pre-tax salary, allowing you to see the tax savings at each of your pay cycle.

Monthly payments and running costs come from your pre-tax salary

We’ll say it again: monthly payments and all associated running costs can come from your pre-tax salary. How good is that? This is one of the most attractive things about a novated lease. No matter what tax bracket you’re in, you’ll be able to reduce your payable tax and drive around in a great car. It doesn’t get much easier than that.

Upgrading to a new model is easy

Let’s say your lease is coming to an end and you don’t want to be stuck with the older model of vehicle which you’re currently driving. You can simply swap your current model for a new one (because you’ve already paid for the depreciation of the vehicle through your monthly payments) and continue making your monthly payments. Simples.

Buying the car is also easy

Let’s say you’ve fallen in love with the reliable chariot you’ve been leasing all this time. Love is a powerful thing; not a feeling to be ignored. You can simply purchase the vehicle by paying or refinance the balloon payment at the end of the lease. Then, it’s yours to keep!

See why novated leases are so easy? If you’re thinking about entering a novated lease with your employer, talk to the team at Carbroker.com.au. They use their network of 2,000+ dealerships to compare deals and find you the best one, so that you’re always winning! Get in touch with Carbroker today.