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.
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:)