Monday 5 August 2019

Learn What You Need to Know About Novated Leasing

Learn What You Need to Know About Novated Leasing


Novated Leasing - A new lease is one of the most cost-effective and easiest ways to lease a new car, and it is not necessary to earn a high executive salary. It is a three-way agreement between a financier, employee and employer. Here is an overview of this type of lease package:

How does it work?

The new lease is likely to run for a period of two, three or five years. Once the lease period has expired, it is possible to upgrade the lease for a newer model or, if desired, pay a buyout to take full ownership of the vehicle.

This type of lease package has several advantages and differs from a typical car loan. The new lease is paid using your pre-tax salary, which means that your money has the potential to continue and is useful for reducing a person's taxable income. On the other hand, the regular loan uses your salary after tax.

The actual process for the employee is relatively simple. Most companies have set up a system to let employees enter a lease term, car type and current salary to give a clear indication of the options available.

What are the advantages?

Tax effective - a major advantage of the new lease is that it is so effective and you can pay the car and operating costs with pre-tax income.

More purchasing power - the possibility of leasing through a fleet company will certainly offer a greater choice in the type of car you can drive. The discount possibilities of using a fleet provider are much more competitive compared to what you could get if you walked into a dealer yourself.

Easily upgrade your car - another major positive point is the ability to change vehicles once the lease period expires. This type of flexibility is great for drivers who always want to drive the latest models.

Service Requirements - this package type is also useful for managing all your service requirements. The costs for the maintenance of the vehicle are often included as part of the lease package.

Are there any risks

In addition to many different benefits, there are also some potential pitfalls that are worth considering. For example, it is essential to have job security to ensure that this type of lease stays in place. In addition, the tax benefits of a new lease have been slowly declining in recent years.
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Location: United States

3 Main Reasons That Why You Should Think About Leasing Your Crane Equipment

3 Main Reasons That Why You Should Think About Leasing Your Crane Equipment

Leasing - If your company needs crane equipment, you need to think of ways to buy it. And instead of trying to use your corporate funds or using a business loan to purchase the equipment, you better choose to lease it. Below are the three ways you can take advantage of leasing crane equipment -

Higher chance of more credit: getting credit is not an easy task. Creditors look for many factors to ensure that they only lend money to reliable companies that they believe will be able to fully repay their debts and interest. And if they don't think you meet their criteria, you have a very low chance of getting approval for financing. And one of the most important criteria that creditors are looking for is your existing credit limit. 

If you have already accumulated so much debt that your debt / assets are skewed, you can forget about receiving credit. And leasing becomes economical here. When you purchase crane equipment through leasing, the lease is not shown as a debt. As such, your debt / equity ratio remains intact and you look much more attractive to creditors. So if you are wondering how to finance a crane acquisition, consider leasing.

Include soft costs in the financing: when you buy crane equipment, you not only spend money on the equipment itself, but also extra costs such as transport, installation, adjustment, training of the operator, etc. All these small costs can add up and ultimately a significant part of the final acquisition costs. And if you are planning to buy it through a loan, you must use more money in addition to the loan to actually be able to buy the tap. But by using a lease option, you can forget all such disadvantages, because a lease covers all soft costs. As such, you do not have to spend a cent on your side to get the machine to your location.

Buy the equipment you really want: if you were planning to buy crane equipment with your own resources or with a loan, you will be limited by cost considerations. For example, you like equipment, but because you don't have much to save, you may be forced to pass it on and select a cheaper device. With leasing you can forget such things. Because you do not make any investments in advance, you can literally choose all the equipment you want. The only limit that you must take into account is the monthly payment. And as long as you can meet the monthly delivery, you can purchase exactly the desired equipment, no matter how high the price tag is.

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Location: 27654 Co Rd 12, Seibert, CO 80834, USA
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