Hi all
Maybe one of our kind brokers can tell me what effect a novated leave has on borrowing capacity. I would have thought that it would have little effect, since it is much cheaper than buying a vehicle and paying for running costs AFTER tax, but I have been told that the lease repayment effectively reduces your borrowing capacity as it would if it were a normal loan repayment.
I dont see how this can be, since a lot of the repayment is to purchase petrol, servicing, insurance etc for about a 40% discount! Surely this bit (at least) would be a positive.
Thanks
Tubs
Maybe one of our kind brokers can tell me what effect a novated leave has on borrowing capacity. I would have thought that it would have little effect, since it is much cheaper than buying a vehicle and paying for running costs AFTER tax, but I have been told that the lease repayment effectively reduces your borrowing capacity as it would if it were a normal loan repayment.
I dont see how this can be, since a lot of the repayment is to purchase petrol, servicing, insurance etc for about a 40% discount! Surely this bit (at least) would be a positive.
Thanks
Tubs