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Dispelling 3 Myths About The Novated Lease

The novated lease still remains as one of the most misunderstood salary packaging options available to both employers and employees, despite it being one of the most popular options as seen by us here at Simplygreen Salary Packaging. With so many myths and misunderstandings surrounding this type of benefit, we thought it worthwhile to put these myths and mysteries to rest.

Myth #1: I Currently Own A Car So I Can’t Buy A New One

One of the most common myths about a novated lease is that if you currently own a vehicle you can’t replace it or buy another with this type of payment.

In Australia, over 1 million new cars are sold every year, which equates to about one new car being purchased every 35 seconds. Car purchase on a novated lease is one of the reasons why so many cars are being bought every year, and it doesn’t matter what the reason may be. Whether you’re looking to upgrade your current vehicle, hoping to replace an older model, or are looking for a safer and more family-friendly car, a novated lease can satisfy that need.

Myth #2: I Can’t Finance a Car

There are a variety of ways in which one can go about purchasing a car, including:

*Hire purchase
*A personal loan
*A car loan
*A mortgage redraw
*A novated lease

Of each of the above options, there is only one that will allow you to salary sacrifice your payments – the novated lease. With a novated lease, you can legally transfer all of the rights of ownership of the vehicle to your employer, and your employer will then become responsible for any car payments going forward. Best of all, you can use your pre-tax or gross salary to make those repayments.

Myth #3: It’s Bad For Budgeting

As long as you choose the right company to obtain a lease through, budgeting has never been easier. Simplygreen’s novated lease programme allows you to spread out all of your car payments for the year in easy and predictable monthly installments so you’re never stuck with a large, unexpected bill at the end of the month.

When you choose Simplygreen for your novated lease, you’re giving yourself permission to obtain the vehicle you want at a price you can afford. All of your costs are distributed evenly across the entire lease term, so your payments are consistent, reliable, and stress-free.

If you’re looking for a more cost effective way to run your vehicle, contact us today at Simplygreen Salary Packaging at 1300-664-323 for more information.