Leasing is a straightforward concept, but there are a few things to consider before you make a decision on what kind of vehicle leasing suits you. We’ve compared two common types of vehicle leasing for you to consider.
Novated leasing is when a leasing agreement for a vehicle is made between an employee, employer and a finance company.
One of the main advantages of novated leasing is that the payments for the vehicle come out of pre-tax earnings so that taxable income is decreased. The payments generally come out of employee’s paychecks before the money hits their account, so there would be a considerable tax advantage.
The other major benefit of novated leasing is that the monthly repayments made towards the vehicle would likely be less than what would be paid if it was purchased outright. Upgrading to newer models also ends up cheaper than the conventional cost of upgrading and it offers the option of purchasing the car or extending the lease at the end of the novated leasing agreement.
Most importantly, for business owners, novated vehicles make great employee incentives! It’s a way to get the right people working for you and retain high performing employees as well.
Commercial leasing refers to any commercial vehicle leasing and it has a range of benefits to offer business owners. Commercial leasing companies tend to have flexible leasing options to suit businesses of all sizes and be are able to cater to specific needs.
They also tend to offer a wide range of vehicles available for lease at a cheaper price than it would cost to purchase outright. For growing businesses, the variety of vehicles is a serious advantage. You can choose from large, medium and small vehicles and lease multiple of each if it’s what your business needs.
Commercial leasing companies generally offer the flexibility of vehicle modifications and maintenance services, as well as convenient leasing options to suit your business. They also tend to be more knowledgeable in commercial vehicles and can offer genuine advice on what would work best for your business. Companies that offer service in multiple locations is also a big bonus for business owners and their employees!
Contact Orix for more information.