Tag Archives: employee

A Novated Car Lease

April 8, 2019   Auto Loans

Lots of banks and financing companies can offer a novated car lease. There are several ways to finance your car and a novated car lease may a great option for you to consider. A novated car lease is similar to a car lease and involves regular payments like a car loan against the finance and can be on a new or used car. What makes novated car lease different is that the repayments are paid by your employer and they then deduct this amount from your gross wage. The agreement for a novated car lease includes a form for your employer and yourself, to form this arrangement.

Why would an employer arrange a novated Car Lease? Employers may want to offer employees incentives that will motivate them to work better and stay committed to the company or organisation. A novated car lease is a great incentive for employees. The financial responsibilities and ownership of the car remains with with the employee and if you leave your job the responsibility of the lease is left to you the employee .

There are several advantages of a novated car lease and these include being able to pay for the car with your gross wages . In case you choose to terminate the lease or employment you could still continue to repay the loan for the car and own it.

Things to consider when taking a novated car lease

Once you have selected the car you wish to lease you may have to negotiate the price and monthly payments for it. Thereafter you need to decide on the amount of fixed payment and the term of the lease. The term of the lease can be between 12 months to about five years.You may have the option of paying the residual amount at the end of the term and buy ownership of the car. The novated car lease is a unique way for employees to pay for a car, initially with small fixed payments, and thereafter with a lump sum payment. This kind of lease is agreed upon between the employer, the employee and the financing company.

Fully Maintained Car Lease

It is crucial that you are able to meet the fixed payments for the car lease. You may want to opt for a fully maintained lease. This may increase the monthly payments but will assure you proper maintenance and care for the car.If the car is predominately for business use it may be tax deductible.

A car lease is valuable for personal as well as for commercial use. The hire purchase contract is a unique way to slowly buy equity into the car until the end of the lease when with a final payment the car can be purchased.

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Business Car Finance Options

April 1, 2018   Auto Loans

Let’s face it, many business professionals travel from city to city to do conduct their daily interactions with their associates. When an individual has a career like this, it is essential that they keep there image professional, clean, and sparkly. Plans that have business car finance options can be very valuable to these men and women. These individuals can typically finance a luxury vehicle for employment purposes.

Many times, these individuals are salespeople who travel from prospective client to prospective client. It is a good reflection of the hiring company, and the individual salesperson, to pull up in a nice vehicle. Business car finance options make this possible as well as the salesperson’s employer. Typically, an employer will either pay for all or part of the vehicle obtained through a business car finance options deal.

The benefits of this arrangement are plenty. Business car finance options have many financial incentives to both the employer and employee. For the employee, some of the benefits include, but are not limited to:

· Business car finance options can be included as an expense eligible deduction from taxes. Typically, the employee can write off expenses such as: gas, light repairs, insurance, and rental cars if needed.

· The employee does not have to incur the risk of his/her own vehicle getting damaged, stolen, lost, or broken into. The company is responsible for all repairs and damage to the vehicle within the parameters of business car finance options.

· The employee gets to drive a luxury vehicle without paying a monthly payment on a loan. Typically, the employer will allow the employee in this situation to use the car for leisure as well. The employee usually gets to take the car home everyday and use it with his/her family.

· Business car finance options allow the employee to gain a better respect in the industry with his/her clients and potential clients. Buyers always feel more comfortable around someone who arrives in style. Salespeople who drive in bad cars are seen as sleazy and shady in most cases.

Benefits of business car finance options do not only apply to the employee. It is easy to see by the great benefits below that this arrangement is very attractive to this type of employer-employee relationship. Many companies today are using this arrangement to protect themselves and save money. Some of the benefits that the employer gets to reap are:

· Tracking their employees whereabouts

· A tax write-off for the monthly expense of the car

· An additional tax write-off for having a contract sales employee

· Reduction of employees arriving late to the office or breaking down and not coming in at all

Business car finance options benefit everyone involved. Some might find it expensive for a company to incur such an expense. Actually, it is not at all. The employer typically gets a large discount for leasing in bulk. And, business car finance options can save money with more people driving to work in reliable cars and missing less work.

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