How does Smart lease operate?
SmartLease is the standard leasing option available through GMAC. You have monthly payments to pay for the portion of the vehicle's value – depreciation – you expect to use over a period of time, plus a rent charge, taxes and fees.
What is the interest rate on novated leases?
Interest rate used for novated lease is 7.14% p.a. vs 8.68% p.a. for car loan.
What is a good interest rate for a car lease?
Different lenders (leasing companies) will offer different interest rates. Use a rate between 2% and 5% if you have strong credit, between 6% and 9% for average credit and between 10% to 15% for poor credit. Length of the lease: Car leases usually last 36 months, which is how long most extended warranties last.
Is a novated lease a good idea?
Paying the least amount of tax possible is never going to go out of fashion. And this is one of the best reasons why novated lease is worth it – it's both cost and tax-effective, meaning more cash in your hand to spend. A novated car lease is considered the last decent tax break for employees.