Could a novated lease work for you?
As an individual there are many ways to buy a car, from purchasing outright with cash, to personal loans, and financing through a novated lease

For those that haven’t used a novated lease before the concept is simple. You enter into a finance contract to lease a vehicle over a period of time, typically 1 – 5 years, which has a balloon payment due as a final payment at the lease term, at which time the vehicle belongs to you. The main benefits of a novated lease are as follows:

  • Save GST on the purchase price of the car. You only have to finance the value of the car less the GST – a 10% saving right away!
  • Save on the running costs of your car. While your lease operates, your running costs can be deducted from your pre-tax salary saving you thousands in tax every year.
  • Your running costs are estimated and deducted from your salary so when time comes to pay for registration or a new set of tyres, the money has already been set aside and is ready for you to spend.
  • At lease end you are able to sell, trade, or keep the car if you prefer, and any positive equity from a sale is yours to keep.

Importantly, a novated lease is transferable from employer to employer, allowing you to continue making tax savings wherever your career takes you!

Talk to one of our team about how a novated lease could work for you.