Novated Leasing isn’t just for employees of big business or Government as most people think. Any employee can benefit with a Novated Lease and there are huge savings to be gained from taking advantage of the tax benefits that this product offers.
New Year’s Resolution Get A New Car Save More Money
Are you someone that makes new year resolutions and this year it’s for a new car and to save more money? Years ago, the norm for Australian drivers was to hold onto their car for years! Perhaps you do the same still, pay a car loan off say over 5 years then keep the car for maybe another 3-5 years and start all over again.
Times have changed though and more Australians are changing their car on average every 3 – 4 years. Unfortunately, though, many are still doing it the old way, applying for a personal car loan and missing out on tax advantages to maximize their salaries through Novated Leasing.
Meaning they are losing the ability to save more money the easy way!
Finding the money pre-Christmas
Let’s just step back prior to Christmas. Where you trying to find extra funds to purchase gifts for the entire family or did you have to break into the credit card again? Maybe you hoped this is the Christmas you could take a real vacation, one out of the state or overseas? Perhaps you just wanted to fly home to surprise parents or see children that lived away or the grand kids and money just couldn’t stretch that far?
There are countless people facing this every single year. We can say “well it’s just another day on the calendar” to make ourselves feel better but truth be told it doesn’t cut the mustard.
The money is right in front of you
So why then are we leaving money on the table that rightfully and legally is ours? Why are full time workers simply not taking advantage of tax benefits that have been around for years? Why is the mind set of Owning a motor vehicle as an ongoing expense, one we unnecessarily just deal with as the “norm”!
Basically, it comes down to education on the benefits leasing a motor vehicle gives. As of now, reading this article you have two choices:
- Give away the money you could have for the following Christmas season to the ATO (because that’s what you are doing, just giving it away) OR
- Really start to understand how a Fully Maintained Novated Lease works as an alternative to either; owning your car outright (using your savings) or taking out a personal loan (and paying for the car payment and all running costs including GST post tax) saving you thousands!
Where will you be next Christmas?
Let’s look at some examples of the savings you can have using our Novated Lease Calculator. Now these examples are worked on part of your new year’s resolution was to buy a new car. Just so you are aware you can change the car you own outright to a novated lease (most times this will give you an immediate return of $1000s (call us to find out how) or the car you have currently under a personal loan can be changed to a novated lease, with most times the interest rate FAR cheaper!
You want a large car, with a value of say $30,000. You work full time, on a base salary of $50,000. You travel roughly 14,000Ks per year, do a lease term of 3 years and you live in WA. Life of lease savings is around $ 7,801.82.
Medium car is what you are after, value is $39,000 (have a liking to a nice sporty model), base salary is $65,000 per annum, 12,000ks is the travel per year, lease term 3 years and you live in NSW. Savings over the term of the lease is $ 8,794.16.
SUV size car with a value of $45,000, salary per year is $90,000, you like getting out and about and Ks per year are 17,000. Term lease is 4 years and you live in Vic. Savings would be around $ 12,141.00!
Understand by not leasing your motor vehicles those three examples above show, serious savings that you are currently not obtaining.
Will you act upon your new years resolution to save money?
While the new car is a really nice resolution the most important part is saving money for yourself and or your family. Education is the key and the way to empower yourself to gain more from your salary. You have nothing to lose in reaching out to us for a free quote or just to ask questions. You do though have everything to gain!
Novated Car Leasing Options does not purport to offer legal, financial or taxation advice. Employers and employees should seek independent advice as to the implications of a Novated Lease transaction. The salary packaging amounts and take-home pay calculations set out are estimates only. While due care is exercised by us to ensure integrity of the estimates it does not make any warranties, express or implied as to its accuracy or completeness. Powered by AllCredit.
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