The company I work for offers a novated lease option for cars. Would this be a financially viable option over a car loan or buying one straight?
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I am also looking at one as well
For a 60k car, repayments are $960 a month (taken into account tax reductions) for 3 years, then 30k to buy it at the end of the lease
total cost – 34560 + 30k balance = 64560
I am also negotiating to use my own insurer which will make it cheaper again
If I got a loan for the 3 years , It would be $1839 a month , but I would have to pay for maintenance, fuel, insurance, registration, tyres which are all included in the lease. I wouldn’t have to pay a balance at the end though
total cost – $66204 + all the other out of pocket expenses (easily 300+ a month extra)
. If you have the cash to buy a car outright , it may be still beneficial to do the lease and invest that money elsewhere
You’ll have to speak to them as it depends on your tax bracket and what type of car
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