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Q: Is novated leasing a good idea or is it better to pay a deposit and get finance? Would be looking at a prado, earning over $100000 annual and drive 25,000km annually. What are the problems with novated leasing?
Thanks :)
A: Hi Sylvia I'm not a financial professional by any means but I have a novated lease for our vehicle.
It works well for me not having to budget separately for repayments, fuel, rego, servicing etc. You'd be wise to call and chat with a few leasing companies, that's how I started. They gave me a good idea of what vehicles would be suitable based on my needs/finances etc.
Also think about all the worst case scenarios like what happens if you were to leave your employment or move, ask how they do registration and insurance payments (some include this and some don't), what happens if you can't work temporarily (eg I will be on unpaid leave for a period during the lease).
It's not for everyone but it works great for me. Don't commit until you've got all the information and understand the fine print well.
All the best!