There are a huge range of benefits to your finances when taking out a novated lease, but some people don’t like the idea of one because they’ve heard about some of the myths below. Have you ever fallen into the trap of thinking novated leasing might be a negative for you? Do you think it’s a complicated process, and that you can only buy a new car? These myths and more are totally busted below:
1) You need to drive a certain distance every year to be eligible
Some people think you need to drive a certain number of kilometres every year in order to qualify for a novated lease. Well, we’re here to tell you that this just isn’t true.
Through a novated lease, the car you purchase is yours. That means, you get to decide what you use it for, and how much you take it out on the roads. If you’ve always wanted a Ford Focus RS (and we don’t blame you) but don’t want to rack up the kilometres on it, then you can simply take it out for a cruise on the weekends and do around 2,000 kilometres a year. You can do 20 kilometres a year if it suits you better. Even 200,000!
2) A novated lease is only for business use
A vehicle purchased through a novated lease can be used for personal use, business use, or a mixture of the two. If you’re an employee and take out a novated lease, you aren’t required to use it for company work either. If you’d prefer to keep it looking spick and span, make it a totally private vehicle, it’s up to you.
3) It’s an extremely complicated process
Here at Alliance Leasing, we simplify the process of novated leasing as much as possible. That means it won’t take employers or employees long to sort out the paperwork.
Besides, we’ve always got a representative walking you through the forms, so if there are any questions, they can be answered straightaway. It’s that straightforward!
4) You can only buy a new car on a novated lease
New cars sometimes don’t have the same flavour as older ones. That’s why you don’t have to spend your money on a brand-new vehicle when purchasing a car on a novated lease. You can buy a demonstrator vehicle, a second-hand car from a dealer or in a private sale, and even take out a novated lease on your current car.
We don’t want you to have to go through life never owning your dream BMW E90 M3 just because they don’t produce them anymore!
5) If I have a novated lease, I can’t change jobs until I’ve paid it off
This is entirely untrue! If you decide to change jobs part of the way through your novated lease, then you can take the agreement with you to the new employer. On the off-chance they don’t offer novated leasing, the lease will simply revert back to a personal loan, so you don’t have to give up your dream car just because you aren’t working in your dream job.
Novated leasing isn’t as fraught with danger as many people believe. It’s a very simple process, is suitable for people getting into any sort of car, wanting to do as many, or as few, kilometres as necessary, wanting to buy new or old, and even people who need a new business vehicle.
No matter your situation, get in touch with Alliance Leasing to see if we can bust any other myths wide open for you.