A novated lease could be right for you if you want to save taxes and have more disposable income. It is a form of car finance where the lease payments and, depending on your option, the car running costs are taken out of your pre-tax salary through salary packaging.
When choosing a new leasing company, ask about their extensive lender panel and fleet discounts. Beware of companies funnelling your application to a single lender with high rates and fees. For the best novated lease company reviews, check this out.
Easi Leasing
Novated leasing is a car finance option that allows you to salary package your lease payments and car running costs into your pre-tax income. It’s one of the most popular forms of car financing in Australia.
Depending on your financial situation and employment circumstances, a novated lease can be worth it. Talk to your accountant about whether it’s right for you.
Some innovative lease companies are transparent about which lenders they work with, while others may funnel all their applicants to a single lender, charging higher rates and fees. Leaselab is one of the former – its website shows which lenders you will apply with and a full breakdown of costs.
SG Fleet has been around since 1988 and is part of the McMillan Shakespeare (MMS) Group. Their innovative leasing and salary packaging services are offered across Australia. They also provide car trade-ins and online remarketing. They can help you find a new or used car eligible for a new lease and then negotiate with dealers to get you the best deal. For the best novated lease company reviews, check this out.
Alliance Leasing
Alliance Leasing leases vehicles to companies that need the car for business purposes and then sells them back to customers at a discounted price. The company claims to be able to offer lower leasing rates than competitors due to their bulk purchasing discounts and other deals they negotiate with vendors.
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Alliance Commercial Capital is a financing company that offers programs to help women-owned businesses acquire the necessary equipment to open their doors. These programs can include everything from computer hardware and software to construction/restaurant/medical equipment.
Novated Leasing
Novated leasing is purchasing a car with finance and budgeted vehicle running costs (including fuel, servicing, roadside assistance, insurance, and registration) included in one monthly payment. These payments are deducted from pre-tax salary, which can provide significant savings compared to paying for these expenses with post-tax dollars like a regular car loan.
A good novated lease provider will also negotiate discounts on the car’s purchase price from dealers and the vehicle’s running costs by bringing volume buying power. They will also have dedicated servicing teams that manage the novated lease vehicles so they can deal with service providers directly to ensure the quality of work is consistent and fair.
At the end of your novated lease, you can buy the car (by paying what’s known as the residual value), upgrade and enter into a new lease, or sell the vehicle to recoup your investment and pocket any profit. You can also rent another car once your current lease ends provided your employer allows it. For the best novated lease company reviews, check this out.
Leasing Australia
Unlike many property management agreements, which are locked in for short periods, novated leases can change their terms and conditions at any time. This includes changes to the vehicle type, car dealer, fuel card provider and the lease duration.
Novated leasing is a way to package a new or used car with payments from your pre-tax income (or 100% pre-tax for eligible electric, plug-in hybrid, and hydrogen fuel cell vehicles). It can also help you save money on running costs such as petrol, charging (if the vehicle is an electric vehicle), insurance, registration, and servicing.