Novated lease vs car loan

Fleetcare Novated Leasing

Fleetcare Novated Leasing

Disposable Income
Car Loan

Novated Lease

Gross Salary excl employer super & other pre-tax deductions
$80,000
$80,000
Pre tax deduction (1st portion of vehicle costs - Novated)
$0
-$6,759
New taxable income
$80,000
$73,241
Less: Tax
-$19,147
-$16,816
New Net Income
$60,853
$56,425
All vehicle costs - Car Loan
-$17,410
$0
Employee contribution (2nd portion of vehicle costs - Novated)
$0
-$10,410
New disposable Income
$43,443
$46,015
Saving Compared To Not Packaging
 
$2,571

Disposable Income

Car
Loan

Novated
Lease

Gross Salary
Gross salary excl employer super & other pre-tax deductions.

Close
 
$80,000
$80,000
Pre tax deduction
$0
-$6,759
New Taxable income
$80,000
$73,241
Less: Tax
-$19,147
-$16,816
New Net Income
$60,853
$56,425
All vehicle costs
All vehicle costs - Car Loan.

Close
 
-$17,410
$0
Employee Contribution
$0
-$10,410
New disposable income
$43,443
$46,015
Savings
Saving compared to not packaging.

Close
 
$0
$2,571

 

SAVE ON CAR PURCHASE PRICE with our national purchasing power

CUT FUEL COSTS with discounted fuel cards

CUT VEHICLE COSTS with discounted maintenance and repairs

REDUCE INCOME TAX with payments deducted from your pre-tax salary

GST SAVINGS on vehicle price and running costs

A Novated Lease is more helpful then a car loan for one reason - tax savings. A portion of novated lease running costs are taken from your gross salary before tax and before the medicare levy, this makes a big difference.

Is a car loan included in a Novated Lease?

A novated lease is a form of car finance, it is the only form or car finance where a portion of your vehicle costs are deducted pre-tax. These costs include the finance repayments, maintenance, fuel and other vehicle running costs.

Fleetcare Novated Leasing

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