Canna Campbell

Diesel too.

And of a fuel-efficient EV, yeah.

So a no-fated lease is a three-way agreement between yourself, your employer, and the leasing company.

And it's a car financing agreement.

And your employer makes payments on your behalf, which is deducted from your salary.

A little bit like salary sacrificing.

It's taken with pre-tax dollars.

But it's used to pay for the car.

Pre-tax.

So you're taking less in your net pay in order to package the car in.

Yes.

So your employer will normally have a novated company that has a list of cars and you select a car from their list available.

And that's also really important because they may not necessarily have the car that you really want on that list.

And then the lease company purchases it.

But you then rent it over a fixed term, which is typically anywhere between two to five years, but I believe four years is the sort of sweet spot that most people tend to pick.

Okay.

But the thing with a novated lease is you're not just packaging the car, like the cost of the car, you're also including in it the running costs.

So the fuel, the electricity, the rego, the insurance, you know, the maintenance like tires.

So it's all combined very neatly individually.

into one regular payment, but you more often than not have a balloon or what we call a residual payment at the end.