What Are My Car Options Regarding Novated Leases?
When it comes to novated leases, there are only a few limitations to note regarding which cars you have available to you. Novated leases are available to take from anywhere between one and five years.
A condition of most novated leases, however, is that the car in question won’t end up ten years old after the lease has expired. Of course, novated leases can be used to obtain new vehicles, but concerning used cars, this is a critical component to consider.
Apart from this detail, you are reasonably free to select any car you desire that’s within your budget. To decide which automobile is best for you we recommend using our novated lease calculator or speaking with one of our helpful team!
Where do we source our cars?
At Vehicle Solutions, we have access through Motorbuys to locate your new vehicle at the lowest price available. Motorbuys is expertly designed to allow users to select the exact colour and accessories you’re looking for to help dealers provide a more representative quote.
The comprehensive quotes provided by Motorbuys allows you to make the most informed decision possible, as long as you know what you want! Every quote given can be expanded to show each cost and how that impacts novated leases.
It’s possible to view which dealerships have the car you want in stock, which results in closer communication with sellers and avoiding surprise costs. The simple and efficient system eliminates two of the most significant problems prevalent in the industry of novated leases.
Transparency is vital, and accurate vehicle pricing removes the high pressure and time-consuming process of buying a new car. Once you’ve achieved the best price on a new vehicle, your novated lease payments will, of course, be lower.
What about luxury cars?
There is a multitude of costs associated and incorporated by novated leases, including fuel, tyres and maintenance. Smaller cars with generally better fuel economy are lower in price and will incur significantly fewer repayments.
Luxury cars tend to depreciate more quickly as well so it might not be the most tax-effective option out there for you. Novated leases are useful because they reduce your taxable income and reduce the overall tax you pay in a financial year.
However, luxury vehicles incur their extra tax, and the ATO has set a luxury limit value restriction on these cars. Fringe Benefits Tax is assessed at the marginal tax rate of 47% so ownership of a luxury car can become expensive.
Depending on your annual salary you still may be able to see reasonable savings with more expensive cars attached to novated leases, but we recommend speaking with the professionals before making these decisions. Our golden rule is to a select a vehicle that’s going to hold its value and seek the best price you can.
For more help and advice on novated leases, call the friendly team at Vehicle Solutions today!