So, should you consider a novated lease? The boring answer is, as ever, that we aren’t offering definitive financial advice and would encourage you to do your due diligence.

2024-04-16 12:21:01

Whenconsideringanovatedlease,thereareseveralfactorstotakeintoaccountbeforemakingadecision.Anovatedleasecanbeaviableoptionforsomeindividuals,particularlythosewhouseavehicleforworkpurposesandwanttotakeadvantageofpotentialtaxbenefits.

Oneofthekeybenefitsofanovatedleaseisthatitallowsyoutofinanceaneworusedvehiclethroughyourpre-taxincome.Thiscanresultinsavingsonboththepurchasepriceofthevehicleandongoingrunningcosts,suchasfuelandmaintenance.Inaddition,anovatedleasecanalsoprovideyouwithaccesstofleetdiscountsandspecialdealsthatmaynotbeavailabletoindividualbuyers.

However,it'simportanttobeawareofthepotentialdrawbacksofanovatedlease.Forexample,ifyouchangejobsorloseyourjob,youmayberequiredtorepaytheoutstandingamountonthelease.Additionally,ifyouexceedtheagreed-uponmileagelimit,youmaybesubjecttoadditionalfees.It'salsoworthnotingthatanovatedleasemaynotbethebestoptionforeveryone,asthefinancialbenefitscanvarydependingonyourindividualcircumstances.

Beforeenteringintoanovatedlease,it'simportanttocarefullyconsideryourfinancialsituationandwhetherthistypeofarrangementalignswithyourlong-termgoals.It'salsoagoodideatocomparethecostsandbenefitsofanovatedleasewithotherfinancingoptions,suchasapersonalloanortraditionalcarloan.

Ultimately,whetherornotanovatedleaseisrightforyouwilldependonyourindividualcircumstancesandfinancialgoals.It'salwaysagoodideatoseekadvicefromafinancialadvisororaccountantbeforemakingadecision.BYDoingyourduediligenceandweighingtheprosandcons,youcanmakeaninformedchoicethatalignswithyourneedsandobjectives.