this post was submitted on 05 Aug 2023
13 points (93.3% liked)
Melbourne
1870 readers
54 users here now
This community is a place created for the people of Melbourne and Victoria. We are a positive, welcoming and inclusive community. We might not agree about everything, but we always strive to stay civil and respectful.
The focus of our discussions is based around things that affect Victoria, but we are also free to discuss our local perspective on wider issues. Or head to the regular Daily Random Discussion thread to talk about anything.
Ongoing discussions, FAQs & Resources (still under construction)
Adoption Certificate for Nellie, the Daily Thread numbat (with thanks to @Catfish)
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Is a novated lease (which in my case includes insurance, fuel, and registration) really as good as companies make it sound, compared to just buying in cash?
Rarely. Especially if comparing it to paying up front and not borrowing. Many years ago there were tax benefits if you drove a lot which could make it cheaper, but mostly these days it just gives you a lower monthly payment than taking a loan directly, primarily because there is a "balloon payment" at the end instead of paying off the full amount.
There is also a lot of hassle involved in doing everything, as you have to go through the lease company. They are also taking out a loan in your name - I know someone who had problems getting a home loan, and discovered that the lease company had not been paying the loan payments which had impacted their credit.
Thank you for such a detailed response:)