Get your pre-tax dollars working for you
Want to save money when buying and owning a car? Novated leases are an easy, simple solution that puts the power of paying in pre-tax dollars to work. Best of all, Novated leases aren’t just for high earning executives; more and more people are turning to novated leases to finance their car, because they’re tax effective and cost effective.
How they work
Novated leases are an agreement between you, your employer and your finance company. The finance company lends you the money to buy your car, and then your employer makes your repayments for you, directly from your pay. This in effect reduces your taxable income.
Key benefits of a Novated Lease
- Pay less on the purchase price: with a novated lease, you don’t pay GST on the purchase price of the car, which could save you thousands
- Save on tax: with part of your lease repayments being paid pre-tax, you can reduce your taxable income and save money
- Save on running costs: you can save on GST by including your running costs in your novated lease. It’s much easier this way too, with only one simple payment to make
- Affordability: with a novated lease, your repayments are fixed and designed to be affordable for you.
- Flexible terms: you can choose flexible end of lease terms, subject to the ATO’s guidelines
- Ownership: Your new car is yours, and you’re free to use it whenever, wherever you want. You keep any equity built up in the car during the course of the lease, and if you later sell for a profit, the profit is yours to keep.