Lease a new lease is one of the most cost-effective and easiest ways to rent a new car, and there is no need to get a high executive pay. This is a tripartite agreement between financiers, employees and employers. The following is an overview of this type of rental package:
How does it work?
The new lease agreement may last for two years, three years or five years. Once the lease term has expired, the lease for the new model can be upgraded or, if desired, the buyout fee can be paid to obtain full ownership of the vehicle.
This type of rental package has multiple benefits and is different from a typical car loan. The new lease is paid for using your pre-tax salary, which means your funds are likely to go further and help reduce one's taxable income. On the other hand, term loans use your after-tax wages.
The actual process of the staff is very straightforward. Most companies have established a system that allows employees to enter preferred rental terms, car types and existing wages to clearly indicate the options they can choose.
what is the benefit?
Tax Effective - One of the main benefits of a new lease is that it is very effective and you can use pre-tax income to pay for car and operating costs.
Increase purchasing power - The ability to lease through a fleet company will definitely provide more options for the type of car you can drive. Discounts using fleet providers are more competitive than what you get into the dealership yourself.
Easily upgrade your car - A further benefit is the ability to change vehicles after the lease expires. This flexibility is perfect for drivers who always want to drive the latest models.
Service Requirements - This type of arrangement is also useful for managing all service requirements. The cost of maintaining a vehicle is usually part of a rental package.
Is there a risk?
In addition to many different benefits, there are some potential pitfalls worth considering. For example, there must be job security to ensure that this type of lease remains in place. In addition, in recent years, tax incentives for Singapore leasing have gradually begun to return.
Orignal From: What you need to know about Novated Leasing
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