So, you’ve decided that you want to get your hands on a novated lease? With all those juicy savings to be had, it can be hard to resist the urge to pick up your pen and sign the dotted line.
It’s essential, however, to make sure that you’re getting the best deal. There’s a considerable variation in savings from different novated leasing companies, so it’s worth taking your time to do your research and find the best one for you.
Shop Around for the Best Novated Leasing Prices
When it comes to novated leasing, the old contract law principle of ‘caveat emptor’ rings true. As a buyer, you have to have your wits about you and be wary of the promises knocking around on the novated lease market today. While most companies are fairly reputable, the difference often lies in the small print. It’s worth considering going with a novated lease that offers you many things such as a low-interest rate and a substantial discount on the initial price of the vehicle you want.
Find a Low-Interest Novated Leasing provider
There’s a surprisingly large number of folks who opt for a novated lease only to be subject to unnecessarily high-interest rates. The interest rate should reflect the risk that you pose to the leasing company when they are purchasing the car. Usually, there will be an assessment designed to appraise your risk level involving checks on your credit history, income stability etc. However, many times, novated leasing companies will get away with inflating the rate behind the secretive doors of their risk assessment., which ends up eating up into savings.
Get a Novated Lease with a Solid Discount
One of the most substantial savings associated with novated leasing is that the company who buys the car doesn’t have to pay GST on it. It means that one-eleventh of the retail value is deducted from the retail price of the car. So, if any novated leasing provider offers you a discount of anything below one eleventh or 9% off the retail value of your car, then seriously inquire as to why the full savings are not being passed on to you and perhaps even find an alternate provider who will offer you the total discount.
Do Your Homework Before You Sign
Many novated leasing companies aren’t fully transparent about all of the details of the lease. There may be hidden clauses and fees that are bundled up into what looks, on the surface, like an attractive package. That’s not to say that there aren’t many novated leasing providers who provide excellent service and incredible savings to their customers. It simply means that you need to find a provider that you can trust who values transparency and integrity.
If you’re in the market for a new car, then you should consider novated leasing as a way to make your hard-earned money to work smarter for you. If you’d like to know how much you can save, head over to our free calculator to get an idea of the financial benefits of novated leasing.