Some of you might think that a novated lease just isn’t for you. You might think that your boss is never going to agree to it, or that novated leases are only for those on super-high salaries. Or else it applies to people who have to drive interstate all the time who qualify for novated leases. You’re only here at this site to find out more about getting a personal car loan.
Well, while we can’t do much about an unwilling boss, we can help you learn more about novated leases. You might be in for a very pleasant surprise. It could be that you would benefit from a novated lease and you might be able to novate your car after all.
Try our quick quiz to see if you are likely to benefit from a novated lease or from novating the car you already have.
- Do you use a car? If you answer no to this question because you work from home nearly all the time or because you prefer to use public transport and/or bikes, then a novated lease isn’t for you unless you fancy trying to persuade the bean-counters at work that you need a novated lease on a top-notch bike. If the answer is yes, then you are likely to benefit from a novated lease.
- Do you need a car loan? Well, if you don’t need to borrow money to buy a car, it could be asked what you’re doing at a car financing site (OK I get it: you’re after finance for some business equipment!). If you do need to borrow money to get your next car (and most of us do), then a novated lease will probably work for you.
- Do you still have money to pay off on your current car? You might be visiting this site because you need a second car. But you can also make a novated lease work for the car you already have, assuming that you’ve still got a bit to pay back on your car. With a sale and lease back agreement, you get the salary packaging benefits of a novated lease and also get the equity you already hold in the car back in the form of cold, hard cash (hmmm I can think of a few things I could do with that money!)
- Do you use your car mostly for private purposes? And just to clarify things, the tax people consider driving to work in the morning and back again at night. And (go on admit it!) most of us run a few errands on the way to and from work, such as dropping the kids off at school and picking up a bottle of milk and a loaf of bread from the(However, if you’re a contractor or a sales rep who has to keep a driving logbook and uses the car for work-related purposes most of the time, then a novated lease might not be the best option for you).
- Does your employer do the salary packaging thing? If they don’t, well, obviously, you won’t be able to get a novated lease unless you’ve very, very good at persuasion. If you employer does, then you should be all good.
If you answered yes to all these questions, then you are likely to find that a novated lease will work for you.