Novated car leasing Adelaide combines car financing and running costs such as fuel, registration, insurance and tyres into one convenient monthly payment plan, while eliminating GST charges on new vehicle purchases – potentially saving thousands in upfront costs.
All car leasing payments can be deducted directly from your pre-tax salary, making budgeting simpler. Also, should you change jobs, the responsibility for making payments will switch with you.
Tax Savings
An all-inclusive novated lease allows you to spread out costs over several payments and benefit from tax-savings on fuel, tyres, registration, and CTP (NSW), vehicle servicing and maintenance – not forgetting any FBT savings that might apply if opting for an electric vehicle!
Your salary packaging provider may have access to wholesale (fleet) pricing on vehicle purchases and on-road costs, providing significant savings compared to retail prices – potentially thousands in extra savings if you’re an income earner!
At the conclusion of your novated lease, either pay off the residual value and take ownership, or upgrade and start another lease for another vehicle. Plus, should your job change, so can your novated lease!
Convenience
Novated leasing’s main draw is its convenience: all running costs (fuel, servicing, roadside assistance, insurance, and registration renewal fees) can be paid for all at once each month, saving money through paying expenses prior to taxes.
Budgeting will also become simpler with online billing since you will know exactly what is being taken out each pay cycle compared to cash or car loans where it may be more challenging to track spending and pay back repayments on time.
A Novated car leasing Adelaide provider may also be able to secure bulk discounts on parts and servicing due to purchasing multiple vehicles annually – this can save considerable money when maintaining regular vehicles.
Flexibility
Novated leases can often be structured to combine all the costs associated with owning and running the car in one payment, deducted directly from your pre-tax salary. Leasing companies generally have access to wholesale fleet pricing so you get the best deal for the vehicle of your choice; furthermore, good, novated leasing companies will often include fuel, servicing, tyres, breakdown assistance and insurance into monthly payments which further save on vehicle expenses.
At the end of your lease, you have two choices at its conclusion – either purchase it (with residual payments), upgrade and switch models, or use your novated lease to finance an electric vehicle, enjoying the same FBT exemption of 20% as regular drivers.
Options
Cost effectiveness of Novated car leasing Adelaide will depend on both your income and car selection. Packaging all car expenses into one monthly payment – fuel, tyres, registration, servicing and insurance premiums included – could save money. Furthermore, payments deducted from before-tax salary allow GST savings on car purchase price and running costs to reduce tax payments so your total income tax liability should decrease accordingly.
SG Fleet can assist in finding and leasing the ideal car within your budget. Our knowledgeable team will handle the paperwork while offering support throughout your car journey.
At STA Auto Group, our novated lease service makes driving your next car affordable and hassle-free. And now that EVs and PHEVs are exempt from FBT (up to the luxury vehicle threshold), leasing an affordable zero emissions car could not only save on FBT charges but it gives you flexibility with where to keep or sell it after its lease term has ended!
