You could do with a new car right now, or a first car perhaps, but only one problem stands between you and this dream-a financial roadblock. For the uninitiated, car financing can be a minefield. What with terms like balloons, residuals, novated leases, hire purchase and a new car loan calculator.
Despite the seemingly complex nature of car leasing and car financing, the jargon used doesn’t reflect the simplicity of the finance products on the market. Can you believe that a few years back there were only two options for getting owning a car, you either bought it or it was given to you by the company you work for? But there is a wide variety of car finance options today starting from traditional bank loans to leases that will all help you own a four-wheeled friend.
To determine the right car financing product for you, you must first decide on whether you want car leasing Australia option or you want to buy the car. The main difference between the two is that if you buy a car it becomes yours for as long as you want and you can do with it as you please.
Car Leasing Option
Car leasing is where you pay for using a car for a certain amount of time as per your agreement with the dealer and then you either hand it over or take another lease at the end of the lease term. There are different types of lease packages, and for some, you can actually buy the car at the end of the period.
Legalities for car leasing are a bit screwed, but there are really no hard rules for which circumstances are best for car leasing or buying. To make the best decision you may need to refer to a new car loan calculator, then to car leasing packages and then take up the discussion with your accountant.
All things said, there are often favorable tax advantages for cars in luxury and prestige sectors. So if you need a car for business or private purpose and your employer can include a car in your salary package then a car lease would benefit you. Although the business of car leasing Australia has taken some major leaps, a vast majority of Australians still prefer buying and owning their cars.
Where Do You Find A Car To Lease In Australia?
There are two categories of a car lease; operating lease and finance lease. These two mainly vary in the way ownership is treated, on residual risk on the owner and on disposal of the vehicle. Finance leases can be novated (made part of the salary package) and because of this have become a very popular option for car leasing Australia.