When is a novated lease beneficial

Pros and cons of novated leasing. Lower taxable income. The fixed running costs of a novated lease car Novated lease companies can bundle all the costs of running a vehicle into your fixed monthly payments. Access to GST-free novated lease cars.

Access to better car prices with a novated lease When your novated lease provider goes to buy your car, they're bringing a lot of buyer power to the negotiating table. The benefit of cheaper servicing costs with a novated lease All those cars need regular servicing, and that's another area where more discounts arise. You can choose to pay some of the costs from your net earnings As we'll read about a little later, Fringe Benefits Tax can reduce some of the savings to be gained from a novated lease, but the good news is you can use the Employee Contribution Method ECM to fine-tune your agreement.

Fringe benefits tax FBT FBT gets paid by your employer, but they're likely to pass the expense onto you during a novated lease. You don't own a novated lease car For some people, this will be a decision influencer — for others, not so much. Not every employer offers novated car leasing Unfortunately, many employers don't offer novated leases — and you'll need to find one that does before you can use this type of lease.

Your self-assessment tax return gets more complicated One of the nicest benefits of being in full-time employment is that your tax return is usually relatively simple, and you can complete it yourself. If you lose your job, you keep the car and the payments When you sign up for a novated lease, you choose a term between one and five years.

Got some novated lease questions? Here's the faqs. Is a novated lease worth it? What's a residual? What are the end of lease options? Find out right here. What's a residual value? Can I buy the car at the end of a novated lease? What if I switch jobs during a novated lease? Will I qualify for a novated lease? Do I need a deposit to get a novated lease? What our customers say about their finance experience. Read true stories of about customers about their finance experience with us.

Customer Feedback. Very helpful and friendly service. Charles was great! Guided me every step of the way to financing my new car. These include:. Novated leasing could be an excellent option to consider if your employer is happy to allow you to salary package your lease. You may be able to take advantage of the tax benefits, too. A novated lease can also be a great option for those looking for convenience and time-saving.

When you take out a fully maintained novated lease with Maxxia, we source your new car, manage the paperwork, arrange the finance and insurance, negotiate with dealers and even have the car delivered to you at home or work.

Novated leasing can seem complex, but if you work with a company like Maxxia, we can handle much of the complexity for you. Want to know more about novated leasing?

You can read our novated leasing FAQs here. This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision. You may have heard of the residual, or balloon payment, at the end of a novated lease. But what is it, why does it exist and how can you best prepare yourself for the end of a novated lease?

By completing this form, I agree to Maxxia sending me emails about its products, services and offerings. Maxxia will handle your information in accordance with its Privacy Policy. What is Novated Leasing and is it Right for Me?

A Detailed Guide. A Detailed Guide 9 October How does a novated lease work? Budgeting your car's running costs Say goodbye to bill-shock. Types of novated leases While there several different types of novated leases, the two main ones are fully maintained, and self-managed. Fully-maintained novated lease As your novated lease provider, Maxxia will assist you in all steps of the process — from sourcing the vehicle, to negotiating on price, arranging finance and establishing a budget for your running costs.

The NCCPA ensures that consumers fully understand the financial products they are buying by letting them know interest rates or anything else that might impact the cost of their credit. As such, we proactively disclose all rates, costs, and charges in our transparent novated lease packages. Previous The best scenic drives around Sydney.

Next Why you should buy your next car online. Have purchased two vehicles through Stratton Finance and each time the service has been fantastic. I've purchased 3 vehicles using Stratton and every time it has been hassle free. Not hidden nasties Estimate my repayments.

Privacy Collection. Home Newsroom. Newsroom Novated Lease or buying with cash? Instant quote Apply now. Toby Simmons Sep 24, Novated Lease or Buying with cash — Which is the right one for you?

A personal loan is paid for using post-tax income, aka the money you receive on pay day that has been taxed before landing in your pocket. A novated lease allows an individual to use pre-tax income, aka gross income money that has not been taxed towards the finance and running costs of their car. By using tax free dollars towards a novated lease, ultimately this can save people thousands of dollars over the life of a lease.

Furthermore, a novated lease gives people access to fleet discounts which can save additional dollars. When you engage in a novated lease you pay less tax, which means more money in your pocket!