Introducing Novated Leasing
Use your pre-tax salary to pay a large portion of the vehicle and operating costs – including fuel, registration and insurance.
Obtaining a New Vehicle With a Novated Lease
One of the smartest and cheapest ways to secure a new or used vehicle is to salary package the vehicle using a novated lease.
By using your pre-tax salary to pay a large portion of the vehicle and operating costs – including fuel, registration and insurance – you can secure outstanding savings on income tax. You’ll also save an extra 10% on the GST.
Essentially, a novated lease is a three-way agreement between you, your employer and the financier, reducing your taxable salary, paying for your vehicle over time, and significantly boosting your purchasing power.
With a novated lease, your regular payroll deduction could include registration, insurance, roadside assistance, maintenance, tyres and even fuel so you never have to worry about those pesty bills again.
And it’s not limited to new vehicles. You can also lease second-hand or existing vehicles, up to nine years old as at the end of the lease period.
At the end of the lease, there will be a residual (also called balloon) payment due to the financier, which is based on the original purchase price and lease term. At this point, you can elect to refinance the residual, pay the residual to own the vehicle outright, or sell or trade in your vehicle to pay out the residual and start a new lease.
To find out how much you could save on a range of vehicles, use our novated lease calculator.
Novated Leasing In A Nutshell
A novated car lease is a great alternative to buying a car outright. You need no cash up front, and there are major tax benefits. And because it works by setting up regular deductions from your pay, registration, insurance, roadside assistance, maintenance, tyres and even fuel can all be included. Never worry about these pesty bills again.
How Does Novated Leasing Work
Novated leasing is possible in most industry sectors, however the legislations and entitlements may vary – so talk to us.
Make Novated Leasing Work For You
With SalaryMasters, setting up novated leasing arrangements is incredibly simple. We can take care of every aspect of the set up and administration of your lease, virtually eliminating any burden on you and your employer. All you have to do is decide which car you’d like to drive.
Benefits of Salary Packaging a Car
Novated lease arrangements allow you to pay a significant portion of your vehicle finance and operating costs using pre-tax dollars. Plus, you’ll save an additional 10% on most items as the GST is paid for you. Your car can be used fully for private purposes and there is no limit on the kilometres you must travel.
Transparency
Receipt of monthly reports on your actual running costs ensures you are fully in the picture with the details.
Tax Effective
With the inherent income tax and GST savings associated with a novated lease, this is the cheapest way to own a new car.
Convenience
From your choice of fuel cards, to having bills paid for you, to regular payroll deductions, there are many ways a novated lease saves you time.
Manage The Paperwork
None for you to manage, as we do it all. Having someone look after the paperwork, and even pay your insurance, registration and maintenance, frees you up to enjoy your vehicle.
Budgeting
An effective budget of running costs and regular payroll deductions ensures funds are readily available when needed with no surprises.
Best Deal Available
Access to fleet pricing and a large network of local dealers ensures you receive some of the best pricing out there.
Alternatives To Novated Leasing
We’ve worked through some white-paper examples of the real savings of various methods of financing a vehicle compared to novated leases. And in almost all cases the novated lease comes out ahead in cost savings considering all aspects as a whole. See the summaries on the right here, or contact us for the full white-paper examples.
Make Your Money Go Further
Many people incorrectly believe that purchasing a vehicle through a mortgage refinance, or a low interest loan, or even using cash in the bank, is the cheapest way to purchase a vehicle. We’ve done the homework for you, and the four examples below show some real-life examples achievable and show just how much cheaper a novated lease is!
Scenario 1
Someone on a $55k salary purchasing a $21k Hyundai Accent with a 3-year novated lease comes out ahead by $6,618 as opposed to financing the vehicle through a home loan refinance using 5.22% interest rates.
Scenario 2
Someone on a $85k salary purchasing a $42k Mazda CX-5 with a 3-year novated lease comes out ahead by $9,727 as opposed to financing the vehicle through a home loan refinance using 5.22% interest rates.
Scenario 3
Someone on a $135k salary purchasing a $63k Mercedes Benz with a 3-year novated lease comes out ahead by $13,826 as opposed to financing the vehicle through a home loan refinance using 5.22% interest rates.
Scenario 4
Someone on a $120k salary purchasing a $42k Mazda CX-5 with a 3-year novated lease comes out ahead by $7,775 as opposed to using cash on hand! All possible via income tax and GST savings.
Save On Your New Car
Salary packaging your next car is a good decision; see how it can work for you. Call 1300 303 357 and speak to one of our friendly specialists.
Get In Touch!
Find out how much you can save on a new or used vehicle with a novated lease through SalaryMasters. Enter your details and we will get in touch with you shortly.
