Leasing and renting cars has become common all over the world. These cars are used by the people of an organization or a hotel chain. Rather than owning cars, it is very easy to maintain a fleet of rented cars. Rather than buying a car and maintaining it is better to rent it and have the cars in hand. This way is cost-effective and many companies follow it. There are many companies which give the cars for rent and it is easy to just call them and pay the rent after the transport is over. There are many ways of taking a lease of a vehicle. Novated Lease Melbourne is the best way to take the cars.
Company Funds the Employee
In this type of lease, the car is leased in the name of the employee. The maintenance of the automobile is completely the responsibility of the employee. The company deducts the pre-tax earnings of the employee for lease payments. The company is funding the purchase of the car to its employee. This gives more comfort to the employee and allows him to get to work in time. This increases the productivity and profits of the company. Novated lease is connected to three people, the employee, the company and the leasing company.
The lease is in between the employee and the leaser. The company gives a guarantee to him and thus he has to agree for every obligation. The employer pays the lease amount every month. Most of the employers give the novated lease in the salary package. If the employee resigns then the company cancels the novation and he has to take up the obligations directly.
Types of Novated Lease
There are three types of novated lease:
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Novated finance lease is where the vehicle is only leased.
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Fully maintained novated lease, the vehicle is leased and its running cost is also to be paid.
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In fully maintained novated operating lease the value risk is borne by the leaser.
Employee Saves Tax
The employee is benefited in many ways by novated lease Melbourne. He saves a lot of tax and GST. The employer gives a lot of discounts to him. He can choose a car of his choice. The lease agreement ensures that the vehicle will remain with the employee for a longer period. In The end of the lease period, the employee can buy that vehicle. He can also end the lease if he wants another motor vehicle or any other arrangement. The terms and conditions are flexible where the employee can decide about the car maintenance, upgrades, and service of the vehicle.
It is always better to read the terms and conditions carefully before signing any deal. Most of the terms are related to the employee and the leaser. The company does not take any responsibility other than paying the lease. Novated Lease Melbourne offers the vehicle for lease for a certain period. Once the period is over the vehicle has to be handed over. 180 financial services offer attractive packages for the employees.
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