How Does a Novated Lease Work?
When it comes to the purchase of a new vehicle in Australia, you must have a positive credit history and you must be able to provide positive financial statements to lenders. If you’re not able to provide proof you are a responsible borrower, you might not find anyone willing to lend you the money to finance a car. That’s where finding out whether your employer offers a novated lease is beneficial. A novated lease is an employer-backed lease that allows you to buy a car without the best credit and without worry you might be denied purchasing a new vehicle.
A novated lease is not something you will find everywhere you go. They’re offered by only employers who feel that the value of offering one of these leases is beneficial to them, and it works in your favor if you apply for one of your own. The Novated Lease Stratton is paid by your employer. You get to choose the car you want to drive, come up with a finance plan with the lender you work with, and then present it to your employer. Your employer then makes a decision regarding whether he or she is willing to pay this loan for you.
The biggest benefit of a novated lease is knowing you have a chance of approval when you might not otherwise. The other benefit is you never need to worry about your car payment. It’s made on time, you don’t have the option to keep it or send it in, and it helps you improve your financial life. If you want to try a novated lease, ask your employer if the novated lease option is a choice where you work. It might not be, but it’s also something you might consider the next time you’re offered a job with a new company if you think it will benefit you to use this finance method.