Car Leasing – Make Your Dream of Owning a Car True

If you are in the market for a car then you have mainly two options available and first is whether you take the car leasing or secondly you buy it. You can take any decision according to your need and according to your financial condition. It is very difficult for many of you to take the decision of lease vs buying the car. Sometimes it depends not only on financial condition but you have to take this complex decision by deciding on the parameters of convenience, obligations, luxury, and car ownership responsibilities, etc. Today through this article we will try to provide you with all types of information about car leasing. We will endeavor to provide you with information about the best car lease deals in Australia.

Let Us Know How Leasing a Car Works

You probably know how to buy a car using a car loan or any other financing method. But car leasing is very different from car buying. In-car leasing, basically you take the car for a few years as rent. The time taken to take this lease can usually be between 2 to 4 years. And whenever your car leasing period expires, you have to either renew it or get it extended. Or you have to give the residual value of the vehicle and purchase it. The car dealer and car finance provider only ask you about the monthly lease payment which is dependent on your car leasing contract and which is to be paid from your employer or your business and else from your pocket.

Best Car Leasing Options In Australia

Before car leasing, you need to know which options of car leasing are available to you. There are mainly three types of car leasing, you will find in Australia. You can choose any of the three as per your requirement.

  • Novated Car Lease

    Novated car lease is one of the best and popular car leasing arrangements for salaried employees. It is a type of three-way contract which is between the employee, the employer, and the car dealer. In Novated Car Lease, the dealer provides you the car as well as the employer deducts the monthly lease payment from employees’ taxable income. This deduction also covers your operational costs such as maintenance fuel and insurance. Novated car lease can be very good for you financially as it lowers your taxable income and redirects funds. You can also take the help of novated car lease calculator available on our website.

  • Finance Lease For Car

    Another option available to you at the time of car leasing is a finance lease. Finance lease is mostly taken for big business. In this, a financer buys the vehicle and leases it to any organization in fixed monthly installments. And in this, after the end of the car leasing, seeing the residual value of that vehicle, the organization buys it or can also get the leasing renewed.

  • Operating Lease For Car

    Operating car leasing is similar to finance car leasing. In operating car leasing, leases do not make any balloon payment after the car leasing period expires. After the car leasing is over, in the operating lease the vehicle is returned to the financier.

Pros And Cons Of Car Leasing

We have tried our best to give you all the information about car leasing along with its types and the process of availing it. Before leasing a car you should also know its Pros and Cons.

Pros of car leasing:

  • You do not have to pay any GST on the purchase of the vehicle and running cost.
  • With the help of the leasing company’s buying power, you get a great discount on the purchase price.
  • You do not require any deposit and there is no commitment to buy the car after the lease period is over.
  • One can take advantage of stress-free car maintenance and save a lot of money on taxes with a novated car lease.
  • Through car leasing, you can also drive high-value cars that you can’t afford.

Cons of car leasing:

  • You have not purchased the vehicle so you cannot use it as an asset
  • Many car leasing agreements do not allow you to undergo vehicle modification.
  • Car leasing for a long time can often be more expensive than buying a car.
  • Strict mileage caps and heavy penalties for exceeding set limits remain in fear in car leasing
  • Terminating a car leasing contract prematurely can result in hefty fines.

Conclusion

So, through this article, you are now aware of all the important information related to car leasing. With Loanpost, you can make your car leasing process easier. The team of Loanpost ensures that its customers enjoy the best car lease deals. So give LoanPost a chance to serve you and we assure you that with our ultimate service you will be able to crack the best car lease deals in Australia.