Novated Loans are a great way to maximise your salary package and help you to afford a new or used car too! Using a novated loan means integrating the financing of your car together with your income so that your employer plays a part with the administration and disbursement of the monthly payments.
You are still fully in control of the selection process – you get the choose which car you’d like and there are even options down the line of transferring the agreement to future employers if they are agreeable. This makes the Novated Loan plans extremely desirable by working adults in a stable career!
There are 2 forms of novated loans in this sense – a non-maintained loan which excludes the daily operating costs of your vehicle and a maintained loan which is all-inclusive. This means costs like fuel and oil, servicing and maintenance, changing tires, registration and insurance fees can all be a part of your package, or not.
Both methods of employing a novated loan are fully tax deductible, since the payment of the financing plan happens before salary is given to the employee, or rather what is considered your pre tax income. That means even greater savings for both you and your employers – it’s a win-win situation!
Since your employing company plays a part in helping you secure the loan for your vehicle, we are able to give you better rates and faster approvals, helping you get one step closer to finishing the processing and administration for your very own vehicle!