Learning More about Chattel Mortgage

You might have heard of chattel mortgage before as it is one of the loan options for car financing, especially for car leasing in Melbourne or in any part of Australia. Car buyers opt for chattel mortgage when they are a bit short on the amount they have to pay to own the car, or when they choose not to pay lump sum cash.

Financing Option: Novated Lease

Normally, financing arrangements are entered into by two parties: the borrower and lender. With novated leasing, however, there are three parties involved: the borrower, the borrower’s employer, and the lender.

As an employer, under a novated lease, you'll agree to make the lease payments on behalf of your employee via salary deductions. Apart from that, a novated lease works pretty much like a typical car lease for business. At the end of the lease agreement, you can choose one of these options: buy the car, enter into another lease, or sell the car.

Doing a Novated Lease

Most business owners acquire vehicles for work-related purposes. On some occasions, however, at least one employee may need a vehicle for his/her duties and for use off-hours. Companies may provide senior personnel with a vehicle under the individual’s compensation package. This requires taking out one through a novated car leasing programme.

Would You Take the Cash or Drive the Car?

A car these days is no longer a luxury… it’s an absolute necessity. It’s nothing new for businesses to offer employees cars as part of their compensation and benefits package. So if an employer offered you either a car allowance or car leasing in Melbourne, which one would be best for your needs?  Here’s a little insight on the pros and cons of both to help you decide.

Life After Lease: What to Do After a Car Lease

Like all financial arrangements, car leases eventually expire, usually after a span of four years (the most common car lease term duration). Once the lease ends, buyers have a number of options available to them: they can either choose to return their vehicles to their lenders, extend their leases for a few months more, or opt to purchase the vehicle from the owner. Learning when to choose one or the other is important in order to get the most out of a vehicle lease.

Car Leasing vs. Buying: Which Should You Pick?

Should you sign up for car leasing or buy a car? As you decide, you have to consider the pros and cons of each. Here are some points to ponder on so you can make an informed and, hopefully, satisfying choice.