Enlist novated lease is a popular financing option for individuals who want to acquire a new vehicle. It offers several advantages and benefits, making it an attractive choice for many. In this guide, we will delve into the details of enlist novated lease, discuss frequently asked questions, highlight the pros, and provide some useful tips.
Enlist novated lease is a three-way agreement between an employee, their employer, and a finance company. It allows employees to lease a vehicle of their choice, with the finance company taking on the responsibility of making lease payments through salary packaging. This means that a portion of the employee's pre-tax salary is used to cover the lease payments, reducing their taxable income.
Key Points:
- Enlist novated lease involves three parties: the employee, employer, and finance company.
- Lease payments are made through salary packaging, reducing the employee's taxable income.
- Employees have the freedom to choose the vehicle they want to lease.
- The lease is transferable, which means that if the employee changes jobs, the lease can be transferred to the new employer.
- The employee is responsible for the vehicle's running costs and maintenance.
- At the end of the lease term, the employee has the option to return the vehicle, purchase it, or enter into a new lease agreement.
Frequently Asked Questions
1. How can I benefit from an enlist novated lease?
With an enlist novated lease, you can enjoy several advantages. These include potential tax savings, the ability to choose the vehicle you want, and the convenience of having lease payments deducted from your salary.
2. Can I choose any vehicle?
Yes, you have the freedom to choose any vehicle that meets the finance company's requirements. This includes new or used cars, as well as motorcycles.
3. What happens if I change jobs?
If you change jobs, the lease can be transferred to your new employer, provided they agree to the arrangement. This allows you to keep the same vehicle and continue making lease payments through salary packaging.
4. Who is responsible for the vehicle's running costs and maintenance?
The employee is responsible for the vehicle's running costs, including fuel, insurance, registration, and maintenance.
5. Can I buy the vehicle at the end of the lease term?
Yes, at the end of the lease term, you have the option to purchase the vehicle. The purchase price is determined by the finance company.
6. What happens if I want to return the vehicle?
If you choose to return the vehicle at the end of the lease term, you can simply hand it back to the finance company. However, there may be additional fees or charges involved, so it's important to check the terms of your lease agreement.
Pros of Enlist Novated Lease
- Potential tax savings: Enlist novated lease allows you to reduce your taxable income, resulting in potential tax savings.
- Flexibility: You have the freedom to choose the vehicle you want, whether it's a car, motorcycle, or even a commercial vehicle.
- Convenience: Lease payments are deducted from your salary, making it a convenient and hassle-free way to pay for your vehicle.
Tips for Enlist Novated Lease
- Research different finance companies and compare their terms and conditions before making a decision.
- Consider the running costs and maintenance expenses associated with the vehicle you are leasing.
- Consult with a financial advisor to understand the potential tax implications and benefits of an enlist novated lease.
Summary
Enlist novated lease is a popular financing option that offers several benefits, including potential tax savings, flexibility in vehicle choice, and convenient payment options. It involves a three-way agreement between the employee, employer, and finance company, with lease payments made through salary packaging. It is important to thoroughly understand the terms and conditions of the lease agreement and consider the running costs and maintenance expenses before making a decision.