Novated Car Leasing? [Australian]
Just wondering if car leasing that partners with the company I work for is worth it or going in the wrong direction?
The amount for the lease is taken pre-tax, which saves money or something.
I have had a couple of novated leases in Australia. It makes some sense if you have no option other than a loan for the car. You don't pay GST on the car itself or anything to do with running the car. You pay income tax on a portion of the car lease, but not all of it. It is calculated to avoid you paying fringe benefit tax.
I'm pretty sure it is still cheaper to just buy a car with cash if you can though, or using a mortgage on your house.