What are the disadvantages of novated lease?
Cons
- You don't own the car. Under a novated lease, you don't technically own the vehicle. ...
- Residual value due at end of lease. ...
- You might liable for the car if you lose or change your job. ...
- Administration fees and higher interest rates.
Is novated lease worth?
Is a novated lease worth it? In most circumstances, novated leases offer substantial income tax and GST savings while bundling up all the costs of running a car into one easy, fixed, and regular payment. If it's available to you, its benefits usually far outweigh a standard car loan.
What happens at the end of a novated lease NLC?
At the end of your lease, you are responsible for the residual value on your car. To manage this payment you can choose to novate a new car with nlc, refinance the residual value for another term, or pay out the residual value and own your car outright.
How is novated lease calculated?
How do I calculate a Novated Lease Payment?
- Drive Away Price.
- GST Included in this total price.
- Government on-road costs of 12 months registration and stamp duty.
- FBT Base value = Drive away price minus the government on-road costs.