Novated Lease in NZ: What are the Pros & Cons for Employees

This easy-to-read infographic explains the pros and cons of novated leases for employees in New Zealand, providing a quick guide to this car financing option. It highlights why a novated lease can be beneficial, such as possible tax advantages that can help reduce your taxable income and the convenience of combining all vehicle-related expenses into one predictable payment. This makes it easier to manage your budget without worrying about unexpected costs related to your car.

However, committing to a novated lease means you’re tied to a set lease term, often lasting a few years. This requires a certain level of commitment, as opting out early can be costly and complicated. Additionally, novated leases generally offer less flexibility than other car financing options. You might face restrictions on your choice of car and have limited options if you wish to upgrade or modify your vehicle.

This infographic presents a clear and concise overview of novated leases, helping employees in New Zealand understand the basics and consider how it fits into their financial planning and lifestyle. It’s a helpful tool for anyone trying to figure out if a novated lease is the most suitable car financing route for them.

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