We have my car on a novated lease. trillian has explained how it works really well..
DH is now in a high tax bracket, so when we needed a new car, it seemed logical to get it and lower his tax a little. I also did it for budgeting purposes. We know it is a set amount per fortnight with no hidden costs or bills like rego to pay as it is paid to the lease company and they pay for us. Not sure about you, but for me, even though I know they are coming, I am always struggling to find the money to pay them. Whereas if the money isn't in my account, I can't spend it.
It isn't necessarily the cheapest way to buy a car and pay running costs, but it can work well in some situations.
We've had novated lease cars for about 6 years until DH changed company's last year and we had to come off it, but we're waiting for it tomgomback o to novated lease, it works for us with DH salary bracket
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