Is the old car you've been driving for a while getting a bit ratty and tired and more than a little expensive to run? Or perhaps your circumstances have changed, the money's tighter than it used to be and you need to save money on your daily motoring? Whatever the reason, you've decided it's time for a new vehicle. But right now, you're scratching your head as to how you're going to finance it.
If you've heard about novated leasing and how it can save you money on a new (or in some cases used) car but not sure how it all works, here's some answers to those questions:
What is a novated lease?
A novated lease is a three-way agreement between you, your employer and a novated lease company, like Fleetcare. The cost of the vehicle and its running costs are taken from your pre-tax salary, reducing your taxable income and keeping more in your pocket come pay day.
How long is the novated lease agreement?
You can lease the vehicle of your choice for anything from one to five years. That gives you the opportunity to regularly upgrade to the latest models with all the latest features. In a world where motoring technology is evolving at an astonishing pace that's a big advantage.
What happens at the end of my novated lease?
At the end of your lease, you have four options.
Do I have to use the vehicle for work?
- Trade in, trade up – Trade in your existing vehicle to Fleetcare (or sell it privately) and upgrade your car with a new lease.
- Double down – Double your savings by refinancing your existing vehicle and leasing a new vehicle at the same time.
- Refinance – Refinance your residual payout for another lease term.
- Payout – Payout the residual amount and the car is yours.
That's really up to you and your employer. There's no requirement to use it for work at all, and you can keep it entirely for personal use if that's what you want to do.
Why is it better than a car loan?
With a conventional car loan the total cost of running that vehicle – fuel, maintenance, finance, insurance – the lot – comes out of your pay after it's been taxed. So that's two big slices taken out of your earnings each pay day. With a novated lease, your employer takes all those expenses out of your pay before the tax man gets his hot little hands on it, leaving more in your pocket.
Am I eligible for a novated lease?
As long as you're not on probation at work, and your employer is happy to enter into a salary sacrifice agreement, you’re eligible!
Any other savings?
Oh yes! With a Fleetcare Novated Lease
, our purchasing power gives you access to fleet discounts on the purchase price of your new vehicle. plus continued savings on running costs throughout the life of your lease. As a customer of Fleetcare, you’ll be entitled to half price car washes at BP
, and much more!
How can I learn more?
If you'd like to learn more about the way a novated lease can save more of your hard-earned dollars, call Fleetcare on 134 333.