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
$85,000
$85,000
Pre tax deduction (1st portion of vehicle costs - Novated)
$0
-$6,913
New taxable income
$85,000
$78,087
Less: Tax
-$21,097
-$18,488
New Net Income
$63,903
$59,599
All vehicle costs - Car Loan
-$14,567
$0
Employee contribution (2nd portion of vehicle costs - Novated)
$0
-$7,399
New disposable Income
$49,336
$52,200
Saving Compared To Not Packaging
 
$2,865

Disposable Income

Car
Loan

Novated
Lease

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

Close
 
$85,000
$85,000
Pre tax deduction
$0
-$6,913
New Taxable income
$85,000
$78,087
Less: Tax
-$21,097
-$18,488
New Net Income
$63,903
$59,599
All vehicle costs
All vehicle costs - Car Loan.

Close
 
-$14,000
$0
Employee Contribution
$0
-$7,399
New disposable income
$49,336
$52,200
Savings
Saving compared to not packaging.

Close
 
$0
$2,865

 

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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