The Top Questions to Ask a Broker for a Novated Lease
The top questions to ask a broker for a novated lease
When you commit to any type of car finance, chances are you’ll have lots of questions. At Positive Lending Solutions, our expert team of brokers will always take the time to speak to you and answer any queries you may have.
When considering a novated car lease, you’ll want to feel confident you're making the right choices for you. Asking your broker questions throughout the process is entirely natural - in fact, it's encouraged - as we want to work with you to find the right novated lease for your needs.
Need your novated car lease questions answered? Speak to a Positive Lending Specialist today on 1300 722 210!
Questions about a novated car lease
Everyone is different and will want to ask different questions. Here is just a selection of some of the top questions to ask a broker for a novated lease to help answer any queries or concerns you might have.
What is a novated lease?
Don’t be afraid to ask something that you think sounds too obvious. A good broker will always take the time to fully explain things to you and you should never feel that you’re being pressured into committing to a loan or a lease without fully understanding it.
A novated lease is a financing option that helps you to buy the vehicle you want. It’s a 3-way agreement between you, your employer and a lender.
What role does my employer play?
You’ll take out the lease and your employer makes the lease repayments as well as the operating costs – which are taken out of your pre-tax salary.
Unfortunately if your employer doesn’t offer novated leasing, you won’t be able to do this as a car finance option. Speak to one of our Positive Lending Solutions specialists about finding the right car loan for you.
What type of vehicles can be used for a novated lease?
The good news is that there aren’t really restrictions on the type of vehicle that you can use for a novated lease. This means that you can use a novated car lease for a new or used vehicle. In some cases, you could even use for a novated lease for a vehicle that you are already paying off.
What are the interest rates on a novated lease?
These will vary depending on the lender you decide to go with as well as your individual financial record and credit history. In terms of the lender, Positive Lending Solutions will always try to find you the best interest rates available for your situation.
One thing you could consider is whether you want to opt for a fixed or a variable rate of interest. This is something that is really up to you although if you’re unsure about which to go for, we can help advise you depending on your situation and budget.
Are there different types of novated lease?
Yes, there are a couple of different options, which we are happy to talk through with you when you decide to get a novated lease.
The different options include:
- Novated operating lease
- Novated finance lease
- Fully maintained operating lease
- Non maintained operating lease
- Budgeted finance lease
Speak to us so we can find out your individual needs and to discuss which novated lease option may suit you best.
What are the benefits of a novated lease?
As an employee, there are lots of benefits you can gain from a novated lease. These include:
- Tax benefits – your novated car lease will be paid from your pre-tax income which means you may pay a lower rate of tax.
- Cost benefits – you may be able to benefit from a corporate fleet discount which reduces the overall price of your vehicle (this could reduce the options of vehicles you choose from though)
- Easy to manage payments – in fact you’ll have to do very little in terms of remembering to make repayments as they’ll simply come out of your pre-tax salary each month.
- No usage restrictions – you can use your vehicle with a novated lease for any means you like (business or personal) and you won’t have to limit the amount of kilometres you cover).
If my novated lease is connected to my employer, what happens if my employment is terminated?
This is something really important to consider. There are three main options if your employment is terminated and you have a novated car lease:
- Take your novated lease to a new employer
- Continue making repayments directly to your lender
- Terminate your lease early (you’ll need to pay it out in full in this case so check early repayment fees)
Get expert help
If you’ve decided that a novated lease is the right option for you, we want to help. Positive Lending Solutions has decades of experience as well as access to a wide variety of lenders meaning that we’ll quickly and efficiently search through the best novated car lease options for you.