All Your Novated Leasing Questions Answered
Thinking about getting a new car but feeling lost in the maze of finance options? We get it—figuring out how to make it all work can be a headache. That’s where Novated Saver comes in. We’re all about keeping things simple and affordable, so you can get the wheels you want without breaking the bank. Plus, our online calculator makes it easy to see how much you can save.
What is Novated Leasing?
A novated lease is pretty much a win-win deal between you, your boss, and a finance company. It lets you lease a car using your pre-tax salary, which can score you some sweet tax savings and keep more cash in your pocket. With a novated lease, car ownership is easier and more affordable, plus we handle all the boring stuff like paperwork and maintenance.
Why Go for a Novated Lease?
- Save on Tax: One of the biggest perks of a novated lease is using your pre-tax income. This means you lower your taxable income and save on tax—who doesn’t love that?
- Easy Payments: We bundle everything—rego, insurance, and maintenance—into one simple payment. Less hassle, more time for the fun stuff.
- Your Car, Your Way: Whether you’re after a compact car or something with a bit more grunt, our novated leases are super flexible. Pick the ride that suits you best!
Why Choose Novated Saver?
Novated Saver is all about making novated leasing affordable and stress-free. Here’s why we’re different:
- Flexibility: We’re one of the few companies out there offering non-exclusive leases to any Aussie employee. You’re not tied down to your employer’s leasing provider, so you can tailor a lease just for you.
- No Nasty Surprises: We’re big on transparency—no hidden fees, no sneaky charges. What you see is what you get, and our quotes are easy to understand.
- Australia-Wide Service: Whether you’re chilling in Melbourne or road-tripping around Brisbane, we’ve got you covered. Our services are available all across Australia.
Let’s face it: not every novated leasing company plays fair. Some try to sneak in extra fees or make things way more complicated than they need to be. At Novated Saver, we’re all about keeping things straightforward and honest.
Check Out Our Online Calculator
Want to know how much you could save with a novated lease? Our online novated calculator is here to help. It’s super easy to use and gives you instant estimates of costs and savings. Just pop in some basic info like your income and car choice, and you’ll see exactly how much you can save.
- Quick Estimates: Get instant numbers on what a novated lease could cost you—and save you. It’s that simple.
- Compare Your Options: Not sure which car to go for? Our calculator lets you compare different options so you can make the smartest choice.
Thinking about how to save big on your next car? Novated leases might just be the ticket, but we know it can all sound a bit confusing. Don’t stress—we’re here to break it down for you. This post will walk you through what a novated lease is, how it works, and whether it’s worth your while, all with an Aussie twist on tax and employment rules.
So, How Does a Novated Lease Work?
Setting up a novated lease is easier than you might think. Here’s the lowdown:
- Pick Your Ride: First things first, choose the car you want to lease.
- Sign the Lease: You’ll sign a lease agreement with a leasing company. Easy peasy.
- Novation Agreement: Your employer agrees to take on the lease payments, which come out of your pre-tax salary. This is where the savings kick in.
- Bundled Costs: All the running costs—like maintenance, insurance, and rego—get rolled into one simple monthly payment.
How Does a Novated Lease Work in Australia?
In Australia, novated leases are popular because of the tax perks that come with salary packaging. Lease payments are taken from your gross salary, lowering your taxable income and saving you on tax. Plus, the Goods and Services Tax (GST) on the car’s purchase price can often be claimed back by your employer, which usually means more savings for you.
Do You Own the Car After a Novated Lease?
When your lease ends, you’ve got a few options:
- Buy It: You can purchase the car for its residual value.
- Keep Leasing: Extend the lease for a bit longer.
- Walk Away: Hand the car back to the leasing company and call it a day.
How Much of a Novated Lease is Tax-Free?
The tax savings depend on your income and how much the lease costs. To get a clear picture, using a novated lease calculator is a smart move—it’ll give you a detailed estimate of how much you could save.
Is a Novated Lease Better Than Paying Cash?
This one really depends on your financial situation. Sure, paying cash means no interest or finance fees, but a novated lease can offer some juicy tax benefits that might make it a better deal overall. Think about your cash flow, tax situation, and long-term goals before deciding.
How Does a Novated Lease Cover Electricity for EVs?
If you’re going electric, some novated lease packages include electricity costs. These can be bundled into your monthly lease payments, making it easier to manage the expenses of running an EV.
How Do I Ask My Employer for a Novated Lease?
Want to pitch a novated lease to your boss? Here’s how to go about it:
- Do Your Homework: Learn the ins and outs of how novated leases work and what they offer.
- Get Ready: Prepare a proposal showing how a novated lease benefits both you and your employer. Novated Saver can even do the pitch on your behalf just ask us!
- Set Up a Meeting: Book a time with HR or finance to chat about it.
- Make Your Case: Explain the perks, like tax savings and boosting employee satisfaction.
Can I Transfer a Novated Lease Between Employers?
Yep, you can transfer a novated lease to a new employer, but they’ve got to agree to take on the lease payments. This process is called renovation, and you’ll need to sign a new agreement with your new employer.
Is the Employer Liable for a Novated Lease?
Your employer handles the lease payments as part of your salary package, but the financial responsibility ultimately rests with you.
Can an Employer Claim GST on a Novated Lease?
Yes, your employer can claim GST on the lease payments and running costs, which often translates to more savings for you.
Novated leases can be a fantastic way to finance a car, especially if you’re looking to lower your taxable income and streamline car costs. While there are some potential drawbacks, the benefits—especially the tax savings—make it a pretty sweet deal for a lot of people. Always chat with a financial advisor to see how a novated lease fits into your specific financial picture.
Is a Novated Lease the Right Move?
For most people, the answer is yes! The tax savings, ease of payments, and flexibility make novated leasing a great choice. At Novated Saver, we’re here to help you get the most out of your lease. Our online calculator makes it easy to figure out if a novated lease is the right fit for you, no matter what kind of car you’re after.
Ready to see how much you can save? Dive into the world of novated leasing with Novated Saver and get rolling towards your new car without the stress.
