You probably don’t need an economist to tell you that times are tough at the moment. If you’re an ordinary wage and salary earner then it’s a fair bet that your household budget is being squeezed by the rising cost of groceries and other everyday items, while those interest rate keep ratcheting your mortgage higher and higher, right?
And of course if you’re renting then you’re doing it just as tough with limited properties and massive demand driving your rent up to record highs.
As for a pay rise – yeah, right!
It’s tough alright, and that’s why there’s never been a better time to get behind the wheel of a brand new car.
“What! A new car at this time! You must be mad! How can I possibly afford to buy a new car on my budget?”
Well hear me out, because I’m not talking about buying a new car, I’m talking about a novated lease on one, and while it may sound counterintuitive, it’s a really smart move that can save you money on your motoring costs while leaving more in your bank account each pay day to meet all those rising costs.
So what is a novated lease? Well in simple terms it’s a three-way agreement between you, your employer and a novated lease provider. Your employer agrees to pay for the lease on a vehicle from a novated lease provider and takes the payment from your salary before the tax comes out of it.
That reduces your taxable income, meaning there’s less for the tax man and more for you each payday. The other crucial benefit is that with a fully maintained novated lease from Fleetcare the total cost of running that vehicle is coming out of your salary before it’s taxed, rather than after it’s taxed.
That’s everything to do with running the vehicles – fuel, maintenance, licensing, insurance, and everything else – it’s all packaged up in that one payment.
In most cases that’s going to leave you with a lot more money in your pocket each payday than if you’d paid for all those costs from your pay after it’s been taxed. That’s particularly true if the car you’re currently driving is getting a bit long in the tooth and those maintenance costs are starting to pile up.
Think about it: Wouldn’t you rather have the reassurance of smoothing out the cost of running your new vehicle than the uncertainty of paying for repairs on your unreliable old one?
A novated lease typically runs for one-to-five years, though experience has shown us that the ideal length is three years. After that you have the option of trading the vehicle in for a new one, refinancing it and keeping it, or otherwise buying it out.
If it all sounds a bit complicated then we’re here to assure you that it’s really not, and that we’ll make the whole process as seamless and simple as possible for you, and for the boss. All that’s really required is that you have permanence at work and that the boss agrees to a novated lease.
You may not have seen a pay rise in quite some time but you can think of a novated lease as a “Clayton’s pay rise” – the pay rise you have when you’re not having a pay rise!
Right now Fleetcare has some very tempting novated lease deals on a range of new vehicles in our novated lease showroom, including some big money savers on electric vehicles.
To find out more about the many benefits of a Fleetcare Novated Lease contact us today on 134 333. You’d be mad if you didn’t.