Novated leasing is a cost-effective way to buy a car. You simply choose the car you want and use pre-tax salary for repayments.
Here are some of the perks you can expect:
You will pay less GST (or sometimes no GST)
When you buy a new car, you’re generally up for GST on the purchase price, fuel, insurance and servicing. However, with a novated lease, you’ll pay less GST on all of these things, delivering significant savings from the start.
You will lower your taxable income
Under a novated lease, repayments are taken from your pre-tax salary, and passed onto the leasing company. Because the payments are taken out before your tax is calculated, this lowers your taxable income, meaning you’ll pay less tax over the long term.
You have lots of choices
A standard novated lease period is three to five years. When your lease is up, you can either:
- Pay the full amount remaining on the lease and buy the car outright
- Sell the car and use the proceeds to pay the residual (or balloon) payment remaining on the lease
- Keep the car and refinance the residual with a new novated lease.
Want to know more? Everything Fleet is here to help you. Give us a call and we can help you consider your options and gather the information you need to know, to move forward.
We’ve got access to exclusive deals and discounts you won’t find as an individual, along with expert assistance that’ll get you on the road in no time at all.
Talk to us today on 131 381 or at hello@everythingfleet.com.au
