CAR FINANCE TYPE GUIDE

Novated Lease: Under this finance model you lease the vehicle from the financial institution and novate the lease to your employer. The agreement allows you to have full use of the car while your employer makes the monthly lease payments. The repayments are deducted from your pre-tax salary. This facility provides for the financing of the vehicle over a fixed term. The final payment representing a balloon payment (usually 30% of the value). Upon the final payment legal ownership is transferred to you. Benefits: Flexibility to purchase a second hand car (provided purchase is through a motor vehicle dealer) Fixed payments and interest rate provides certainty It may reduce your personal tax liability You can take the car with you if you change jobs, you own the car at the end of the novated lease term Considerations: Not generally suited to self employed individuals The full cost of maintaining the vehicle is your responsibility

Disclaimer: The above is a generic representation only. It does not constitute financial advice or mortgage structuring advice. It is only to be used as a guide only. Please discuss your financial needs with a financial planner, accountant or your banking representative. No reliance should be placed on the above information.