About Walking Bus

As it was “Walk To Work” week, The Walking Bus held “Walk To School” days at a number of local schools, including John Palmer and Parklea Public Schools, encouraging students, parents and teachers alike to walk to school.

This was a great success with severla hundred people taking part at the schools! The Walking Bus is a fantastic initiative, encouraging children to wlak to school along safe routes with trained parent volunteers, promoting healthy lifestyles, exercise, and less congestion around schools.

Novated Lease in Benefit Packages

Here’s How Offering a Novated Lease in Benefit Packages can Benefit Employees and Employers, Alike

Benefits packages make up an estimated thirty percent of total compensation of employees in the United States. Employers save money on health insurance and retirement plans, getting potentially sizable discounts from buying large bundles of benefits. This saves employers money by providing attractive compensation options without breaking their banks. If employers were to pay employees outright with cash, rather than purchasing workforce benefits in masse, they’d lose thousands of dollars in forfeiting benefits packages.

Many business employees, like the entire United States population, aren’t strapped with cash and able to purchase a new vehicle. Because employers have far more working capital than the individuals they employ, as well. The combination of these two factors results in employers being able to extend favors to employees by taking out a novated lease.

Lots of people in the great United States of America aren’t familiar with getting a novated lease. However, this far from suggests that they’re useless. Providing a novated lease as part of benefit packages provide a number of advantages to employers and their workers alike.

Let’s look a tad deeper in what a Novated Lease Calculator Stratton is and the benefits they offer employees and businesses.

What is a novated lease?

A business finances a vehicle from a dealership or manufacturer. Rather than the business utilizing the vehicle, an employee of the business is lended the car. Employees pay for vehicles taken out with a novated lease by having appropriate amounts of pay docked from regular paychecks. Rather than lessees going to financial institutions and dealerships to pay what they owe, automatic employer deductions help reduce costs of financing. This is advantageous for the business and its employees all the same.

How can employers benefit from a novated lease?

If employees default on payments, the company repossesses the car. This helps businesses because the vehicle is returned to ownership of the organization, rather than an independent car dealership, private owner, or financial institution. Organizations can feel safe in securing financing for their employees’ novated leases, as defaults don’t leave that business entity.

Novated lease benefit package offerings can also eliminate lots of money spent towards maintaining company vehicles. By having employees operate and — more importantly — pay for the vehicle’s maintenance, preservation of tip-top condition is now possible.

And what about employees?

Employees of large companies often struggle with money. Many people in dire financial situations come from families facing similar hurdles. Because most employees aren’t able to ask friends or family for paying down payments on nice vehicles, they’re able to take pride in their employer sticking up for them. This boosts employee satisfaction, attitude, and morale.

Workers are also subject to tax deductions from having money related to the lease taken directly from regular paychecks. This makes filing their current year’s tax return open to several deductions.

Final thoughts

As our world increasingly progressive, employers are slowly changing their views towards the content of benefit packages. Offering a novated lease is sure to prove beneficial to all parties involves.

Car Finance

Car Finance

Owning a car is perhaps one of the most important factors of adulthood. The process of getting your permit and then your license as a teenager (or whenever) is exciting as it shows the first step of “growing up”. Although it is possible to live successfully without ever owning a car, it is clear that things are a lot easier when you do have one.

With that said, owning a car is a very expensive ordeal. With car insurance and gas, you’ll end up paying several hundred dollars or more per month just to keep the car running and legal – not to mention registering your plates, et cetera. Basically, owning a car is a rather costly affair.

Before you have to worry about any of that, however, you first have to get over the obstacle of actually buying the car itself, which is a large expense all on its own. The high prices of cars is often the reason why people end up without one. Luckily, there is a magical solution called car finance that will make buying a car ten times easier.

What is Car Finance

Car finance is any method of financing a car other than having the customer pay a full lump sum at time of purchase. There are many methods covered under car finance, although the most popular way is by taking out a car loan. Other methods covered are ultimately the same and make it so that the customer can make a down payment and pay the rest of the total over a certain period of time. This includes leasing. Like Car Finance https://www.strattonfinance.com.au/car-finance/options/car-loan.aspx

How Does Car Finance Work

When you finance a car, you are adding to the total cost of the vehicle. Because financing usually consists of a loan, you are paying for the interest and other loan costs on top of the actual cost of the vehicle. This can leave a person paying thousands more than what the car actually costs.

Car Finance with a Loan

When financing your car by way of a loan, there are several things you should keep in mind. The first thing is the amount of the loan – a.k.a. the amount of the total the loan will cover. This is usually affected by your down payment. Other factors are the interest rate or annual percentage rate (APR) and the amount of time you have to pay back the loan.

Car Finance with a Lease

By leasing a car, you only pay for the amount you will use the car and not the actual total the car costs. You also pay various leasing fees. A down payment may or may not be required, and then you will make payments monthly. This is often less expensive than financing a car by loan, however you will not own the car after the lease is up.

Choosing between a lease and a loan depends on what you want out of your car. If you like to update your car frequently and would rather not have the same one for a long period of time, then leasing will likely be the best option for you. Otherwise, taking out a loan will help you gain equity because you will own the car when the loan is paid off.

Banks Tightened Up On Car Loans

Banks Tightened Up On Car Loans

Some of the country’s biggest banks have tightened up their standards for making a car loan significantly. They are viewing the drop in car sales in general as well as the decreasing price of used cars as a reason to be concerned.

Fox Business reported that Wells Fargo posted a 29% decrease in the number of car loan originations that they created. This was the largest decline in a given quarter in the last five years for that particular bank.

The car loan market in particular has dried up for those with the very lowest credit scores. The most risky borrowers have historically been a great market for the lenders to tap into. However, this is starting to change as they are pulling back on their lending activities in order to control their potential risks.

In recent years the car loan market has been extremely open to those who want to borrow. It has been accommodating to them because the banks wanted to get those loans out the door. They could see the big profits that would come in on a lot of loans and keep making those loans.

There have been record car sales in both 2015 and 2016, and this lead some to believe that there would be a slow down on the Stratton Car Finance market. That has happened, but the banks have also been hit by some losses by those who are not paying on their loans. At the same time there is a problem with declining values in used cars.

Lenders sometimes have to go and repossess vehicles that someone is not making their payments on. When they do this, they have to try to sell that vehicle at auction. It sounds simple enough, but the real problem is that the cars are declining in value quickly. This means that they take a bigger loss than what they otherwise would.

Even a prime car loan that ends up as a repossessed car can still only end up getting an average of about 51% of the original value at least in 2015. That is a dismal scenario for the bank that lends out that money in the first place. This is likely a big reason why the banks are now tightening up their standards to such a great extent.

Anyone who is interested in a car loan at this point should work on getting their credit score as high as they possibly can. Those with decent credit scores are the only ones who can legitimately expect to have any chance of getting the car loan that they desire.

Obviously, not all lenders are going to close up their doors just because there have been some less than ideal outcomes for some. That being said, as the market continues to get tougher to get into, borrowers must consider their options.