After receiving this, you'll see why more and more Australians are choosing to novate their next cars.
A novated lease is the most cost-effective way to acquire and run a car.
It's a three way agreement between you, your employer and Novated Lease Australia.
A novated lease is an automated discount on your new car - you do not have to pay the GST on the purchase price of the car, instantly saving you thousands of dollars.
You can also include all of the running costs of the car, including fuel, registration, maintenance and insurance. This further increases the huge savings you can make with a novated lease.
Just like other forms of car finance, there are typically a number of payments over a fixed term, with a residual (or balloon) payment due at the end of the lease. Each party to the agreement – employer, employee, and financier – will play a specific role.
Agrees to make regular, automated payroll deductions from the employee’s pre-tax salary. Our expert team helps set everything up.
Agrees to pre-tax salary deductions, in exchange for the use of the vehicle. The vehicle can be used for business or entirely for personal use.
Procures the vehicle, establishes the lease and manages the administrative, contractual and compliance aspects of the transaction.
This supersizes the already considerable savings.
The example shown is the cost of buying and running a Tesla Model 3 RWD over 5 years, compared to using traditional car finance and buying the car outright using cash. (The calculation is based on a driver in NSW with $120,000 pre-tax salary, 15,000km driven annually and car loan interest rate of 7.5% p.a.)
Thanks to the major fringe benefits tax incentive, EVs and PHEVs are in high demand. Here are some the most popular eligible vehicles below the luxury car tax threshold.
We also help customers every day with fantastic deals and major tax savings on Australia's best-selling non-EVs.
Learn more about how a novated lease works from start to finish. Our expert consultants can also answer any questions, so you can sign up with confidence.Find my best deal