You need to buy a new car, and it’s a big expense. The payments are awfully steep and you may have to sacrifice some of your preferences and go with a vehicle that’s quite a bit less than what you really desire. But, what if there were a way to have your car and drive it, too? How about this- making a single payment that comes out of every paycheck that not only allows you to have that nice new car, but covers all the regular car expenses like servicing, insurance, even fuel! Even better, the portion of the payment that comes out of your salary is before taxation, which reduces the amount of income tax you have to pay! Sounds good? We think so, and so do a lot of other drivers in Australia!
Over 1,000,000 Australians get a Novated Lease every year because it’s a terrific way to save money and is usually a more cost-effective option than what you would have if you went with dealer financing or a standard car loan! Let’s take a look at just a couple of the many benefits a novated lease can bring you!
Before Tax – Your novated lease payments are deducted from your salary before tax, which means the amount of tax you have to pay will be reduced!. A novated lease lets you keep a lot more of your cash flow, so your savings can work for you, whereas if you purchase a car outright it will be a huge amount of money upfront that will be going into a depreciating asset- modern cars lose value as they get older, and very few makes and models ever become classics, even if they did it would be many decades later!
A Better Deal – Your novated lease provider has access to something you can’t get on your own- fleet pricing! What this basically means is that you are getting the wholesale price, and it’s a lot cheaper! That’s not all, your novated lease provider can acquire parts and labour at fleet pricing as well, which can save you a whole lot of money. It’s possible to gain this perk when purchasing from a dealer, or taking out a standard car loan, but the thing to bear in mind is that those options will come out of your post-tax income, which means you won’t be saving as much. There’s also one more thing to take into account – the low interest rate on car finance you see at a dealership isn’t going to be as great a deal as it looks because they have probably jacked up the price of the car to compensate for that nice low interest rate! Buyer beware!
If this looks like a pretty good deal to you, you are right, it is! Getting a novated lease is the best possible way to buy a new car, you will pay less while keeping more money in your wallet where you need it! So, don’t settle for something that isn’t really what you want, a novated lease can get you into the right car at the right price, guaranteed!
