With the help of a novated lease, an employee can own a car of his choice at much lesser costs than paying himself. In this system the cost of the car is deducted in small amounts from his salary in a way that reduces the overall tax payment of the employee.
Benefits Both Employers and Employees
With the help of an Auto Finance company, a person can avail of a suitable car lease. In this lease system, the employer, the finance company, and the employee are the three parties involved. After the car loan has been approved by the financing company, the amount to be deducted for the loan every month is determined. The employer then declares the gross salary of the employee as the basic pay minus the car loan amount. The novated lease helps save tax for the employees, especially those who receive a higher salary and have to pay more tax. In this system the employer makes the payment to the finance company by deducting it from the employee’s non-taxable salary. Therefore the employer is responsible for clearing the car loan and other expenses like maintenance of the car.
This system is useful for the employer especially if the remuneration package offered to the employee includes a car facility. Also in those cases where the employee is required to do a lot of traveling by car due to his work, it is a good idea to choose such Car Lease systems in which the employer can save a lot of transportation expenses. Once the car loan is completed, the vehicle becomes the personal possession of the employee entirely. Within the term of the novated lease if the employee chooses to leave the company, he has to forgo the car or pay for the loan by himself with the approval of the financing company. This system of car leasing is beneficial to the employee as he has the option to choose the car of his choice whether a new or secondhand one. Also, the employee is free to use the vehicle for his official and personal work.
Check Out Lease Terms and Conditions
The employee benefits considerably from this system as repaying a car loan from his gross taxable salary means a lesser net amount after the tax and loan are deducted. Interested parties who are keen to choose a novated lease should contact Cars financing company to get an idea about the lease amount to be paid for a particular car. A person can search online for suitable financing companies which offer such lease facilities as reputed financers have their website where they provide their contact details.
Interested customers can contact the company and ask for a quote of the lease amount on a particular car. Depending on the calculated lease amount, the employer and employee can decide on the model of car and the term of lease. It is a good idea to check out the lease terms and conditions of various Autos financing companies and compare their quotes to get the best deal.
By choosing a suitable novated lease on the desired car, both the employer and employee can benefit from the deal.
Choose an appropriate novated lease on a car of your choice and compare the lease amount and conditions given by various Auto Finance companies to get the best deal.
Article from articlesbase.com
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