So you’ve been eyeing that dream car for a while now, but you’re also keen on saving as much money as you can. Luckily, there’s the novated lease. It’s basically your ticket to driving the car you want to, while keeping your wallet happy. In this article, we’ll take a closer look at how a novated lease can help do just that, exploring how you can trim down your tax payments and make the most of salary packaging perks. But before we dive into the money-saving magic, let’s break down what a novated lease is.
Ok, what is a novated lease?
Novated leases are clever vehicle financing leases that allow employees (you) to lease a car through your employer, and have the payments for the car deducted from your pre-tax income. So basically, you get to pay off your car before tax gets deducted from your salary, and you get a bunch of ways to save while you do it. Now, let’s look at the best ways to save –
Tax savings
Since your car payments come out of your pre-tax earnings, you end up with a smaller monthly tax bill. That’s because your taxable earnings are brought down from the car payment. So you basically get a tax break every time you pay off your new car, which means you pay less tax, and have more disposable income.
Petrol perks
Another amazing part of a novated lease is how it helps you save when you pay for petrol. That’s because your car payments aren’t the only thing that is tax-free. With a novated lease, you can use your pre-tax income to pay for petrol, so your monthly taxable income is brought down ever further, which as we now know, leaves you with more money at the end of the month. Plus, you can get a handy petrol card to swipe and save.
With this many ways to save, it’s kinda crazy that more people don’t have novated leases. But, that’s not all –
Running costs
No one likes surprise repair bills. And with a novated lease, you can bid them farewell. Many novated lease packages include maintenance and service deals, which cover everything from the routine upkeep of your car to unexpected repairs. Again, you’ll be saving, just for fixing your car.
Salary Packaging Perks
Last but not least, salary packaging is where the savings really add up. By bundling your car’s lease payment and other expenses into your pre-tax salary, you can boost your take-home pay while slashing your tax bill. Salary packaging comes with a whole world of perks. For example, a Meal Entertainment Card, which lets you charge things through your salary packaging profile and pay them off with your pre-tax salary. Here are just a few of the incredible things you can save on –
Eating out
All your meals at cafes, restaurants, and hotels can be paid for using your card. Plus, you can enjoy food and drinks at special events like weddings and birthdays, and charge them to your card too.
Vacations
Your card is your ticket to booking holiday accommodations, including everything from luxurious resorts to cosy caravan parks. Even cruises are included, as long as they meet the accommodation criteria.
Event venues
Need a venue for your next big celebration? Your card covers venue hire for any occasion, whether it’s a milestone birthday or an engagement party.
Group Expenses
You can even include your loved ones in all the expenses above. So, if you’re footing the bill for a group outing, your card has got you covered.
Designed around you
Leases that don’t leave you tied in do exist, because novated leases are all about offering you choices. Whether you’re eyeing a brand-new ride, a reliable used car, or an electric car, there’s an option to suit every taste. Plus, with adaptable lease terms, you can customise your lease agreement to match your budget and your lifestyle.
Ready to get moving?
A novated lease is the ultimate money-saving trick for anyone looking to buy a car. With tax advantages, fuel discounts, and flexible terms, it’s a win-win for your finances and your dream of owning a new car. Ready to get started? Get in touch with CBB The Salary Packaging People. We’ve been helping people save through salary packaging for over 30 years. Plus, we know all the ins and outs of salary packaging and novated leases, so we can make the entire process as simple as choosing a new car. Or maybe, even easier. Chat with a member of our team today, and let’s get you on the road to savings.