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Novated Lease Agreements

You can possibly renew your current contract with the same vehicle by refinancing the lease based on the residual value of the vehicle. However, it is important to consider the reliability of your current vehicle (as cars can cause mechanical problems as you get older) before opting for this option. What are the benefits of a novated lease for an employee? The residual value is determined at the beginning of the rental period and is based on the market value of the vehicle at the end of the rental period. If the vehicle is sold at the end of the rental period for less than the residual value, you must pay the balance between the proceeds of the sale of the vehicle and the residual value. Find out what a newly screwed lease is, how it works and what its benefits are. Depending on your employer`s packaging policy, you can also save 10% off all your financing and operating expenses. This is an innovative leasing policy involving your employer; Therefore, your car could be treated tax as a function car. Your employer can pick up the GST at your operating expenses – and you may only have to pay the exclusive portion of the GST. As an innovative leasing provider, Maxxia helps you through every step of the process – from buying the vehicle to negotiating prices, through financial mediation, to setting up a budget for your operating costs. The provider sets up your payroll deductions and arranges these deductions with your employer. It is important that the financier use an entry credit (ITC) as part of a novated lease to withdraw the GST from the amount financed. This means that your repayments are lower because you are financing a reduced, exclusive amount of GST.

Under a wage packaging agreement, all financing and operating costs of the vehicle are called “linked benefits” and are exempt from GST and income tax. A new car leasing allows you to drive the car you want – any power or model without affecting your lifestyle. It could save thousands on the purchase price and operating costs of a new or used car, or even the car you are currently driving. If you are an employee and want to buy a car, an innovative rental contract could put you in the driver`s seat while saving you money.