Because of the fact that this type of deal helps people save money on car ownership, car leasing options are becoming more and more in demand these days.
Now if you are still having second thoughts on leasing a car of your own, you might want to go over some of these reasons why car lease deals are considered one of the best deals in the market.
For those of you who have heard about novated lease but is not quite sure what exactly it is, you can simply think of it as renting your own vehicle for a certain period of time.
Unlike purchasing a vehicle and paying for its full price, you don't actually get to own the vehicle during the leasing period.
Even after that period, you don't get to own parts you have replaced because for obvious reasons that you are just renting out the vehicle.
While this may be the case, you are given the option to either purchase the vehicle for its residual value or you could upgrade your vehicle to a newer model and then subsequently get into another leasing agreement.
Now just like renting out any type of property, you will also need to make a down payment when you opt for a novated lease agreement.
Unlike purchasing a brand new vehicle, you don't necessarily have to get stuck with a large down payment as you are just technically renting out the vehicle in a car leasing deal.
Before you can take home the car of your choice, you need to make arrangements first with the employer about this type of agreement.
Because car lease deals are not a form of car loans, a huge amount of deposit is not really required.
After closing the deal, you only need to make small amounts of monthly payment for the rent of the vehicle.
The payment will be deducted from the employee's pre-taxed monthly salary.
It is the responsibility of the employer to make sure that monthly deductions are made from the pre-taxed income.
This type of arrangement usually lasts for roughly two to three years, depending on what the employee and the financing company had agreed upon.
Another reason why many people opt for this type of deal is the fact that the vehicle they would be driving will always be covered by warranty.
Manufacturers these days offer three year warranty on all the vehicles they lease out.
And since most leasing deals are only for a three-year period, you will never have to worry about the warranty coverage of the car you are driving.
Obviously, this will save you a lot of money and hassle as you no longer have to pay from your own pocket the routine services that your vehicle needs.
Lastly, you can definitely change your car quite often with this type of agreement.
If you are someone who likes to upgrade his or her vehicle every after a few years, then this type of deal is your best option.
Since you don't really own the car, you also don't have to worry about its disposal by the time you decide to upgrade it to a newer model.