The guys at privatefleet has a good explanation on what a novated lease is. The two main benefits that I saw was
- Financing of the vehicle is paid with pre-tax dollars.
- The vehicle may be leased for 100% private use.
Before we leap into a novated lease agreement, the following questions need to be answered.
- Do we really need another car?
- What kind of car do we need?
- How much do we need to borrow?
In the coming months, these questions will hopefully be answered.