Novated leasing is the modern, tax-effective way to get behind the wheel of that car you’ve been dreaming about. But perhaps you’ve got questions about it, because people have told you that maybe it’s not such a great idea after all? Well, that’s not surprising, because there are lots of myths and misunderstandings about novated leasing. Let’s look at some of them here, and clear up the confusion:
Only for high income earners
It’s one of the biggest myths of novated leasing – that it’s only for high income earners. Well, novated leases can offer big tax benefits for people in lower tax brackets too, though those on higher incomes may see bigger savings, thanks to their higher marginal tax rates. Whatever your income, the savings on GST, and the convenience of bundling up all those vehicle expenses into one monthly payment, makes a novated lease an attractive option.
It's complicated
If you’ve heard it’s all too complicated and hard to understand, then you can relax, because Fleetcare’s here to walk you through the process with clear guidance and support. From selecting a vehicle, to managing running costs, you’ll find it all quite straightforward when it’s done by experienced professionals. We’ll make it easy to understand the financial benefits and your obligations.
I’ll lose my car if I lose my job
In these uncertain times what if I lose my job? Merde happens, as they say in France, so won’t I lose my car as well? Well don’t stress, because if you change jobs the novated lease can be transferred to your new employer. We’ll make it simple and straightforward for you, and your new boss, with flexible arrangements that ensure you keep control of your vehicle expenses when you change jobs. You can learn about how we do it here.
It's more expensive than car loans
A lot of people think novated leasing is more expensive than car loans. While there are different costs whichever you choose, you’ll usually find that a Fleetcare novated lease is more cost-effective when you consider the tax savings and benefits.
By financing the vehicle with your pay before it’s taxed, you reduce your taxable income, which can lead to big savings. But you’ll also save on GST, while gaining from fleet discounts, when you bundle up all those costs for insurance, maintenance, fuel, and everything else into the one pre-tax payment.
It’s only for new cars
Perhaps you’ve heard that novated leasing is only for new cars? Well, that too is wrong, because you can get a novated lease on a used car as well, just as long as certain requirements are met. Just pick up the phone and talk to us to find out more.
In it for the long haul
If you’re worried about locking up a long-term financial commitment right now, well you can relax, because that one’s a myth too. While lease terms typically range from one to five years, Fleetcare bends over backwards to be flexible. At the end of your lease, you can choose to purchase the vehicle, re-lease it, or upgrade to a new model, so you can adapt your vehicle choices as your needs and circumstances change.
A Fleetcare novated lease offers you a range of benefits that can make vehicle financing more affordable and convenient. By understanding the facts and dispelling the myths, you can make a more informed decision about whether novated leasing is right for you. When you choose Fleetcare you can be sure of receiving expert guidance and support, making the process as smooth and beneficial as possible.
For more information ring Fleetcare today on 134 333.