Everyone dreams of owning a private vehicle. With a private car, you can go anywhere and take your family out on weekend getaways. Also, a car ensures that you get to your work or run your business errands conveniently. However, since a vehicle does not come cheap, it takes years of hard work to save a considerable chunk of your earnings to afford your dream car. For young adults recently employed, it will take them up to at least three years to afford a good car. But as we all know, not everyone is patient enough to wait this long to own a vehicle. It is because there are car financing options out there that makes it possible to own a car with a minimum deposit or no deposit at all.
If you are considering getting a car under the financing options, then you have several options all for your choosing. The most common choices are bank loans, car loans, and novated lease. To start with, the car loans and bank loans are available for both the employed and self-employed individuals. For as long as you can prove to the bank that you are capable of repaying the loan, you will have the funds available to buy your dream car in a few days. However, with the increasing inflation as well as greedy financing institutions, these two options become very expensive and not the best unless you do not have an alternative.
The best way to own a private vehicle is through novated leasing. But how is this different from car loan and bank loans? Well, there are many differences. First, this option is only available for the employed people in both private and public sector. For as long as your employer supports this type of arrangement, you can easily own your dream new or used vehicle. The process is straightforward. First, you need to know your annual income, know how long you wish to make the repayments, the type of car you want, when and how payroll can take the deductions, i.e., weekly, fortnight, monthly, etc. With information, you can then use a novated car lease calculator online that will help you get the actual savings and other critical information.
If you are wondering what makes a novated lease deal different from car loans, there are a few reasons. First, since the deductions are before tax, you will save more money on taxes. Two, in this type of arrangement, all the car maintenance expenses are covered which is different with car loans. Also, towards the end of the lease period, you can decide to own the car or to renew the contract and get a new car. With this arrangement, it is also possible to move from one employer to another as the agreement is transferable which is opposite with car and bank loans. Last but not least, the interests are affordable as compared to car loans.