If you're in the market for a car, you may be wondering if you can lease a used car. The answer is yes! While novated leasing was originally designed for new vehicles, it is now available for used cars as well. In fact, there are many benefits to choosing a used car for your novated lease.
When you lease a used car, the purchase price is often lower than that of a new car, which means lower lease payments and potentially greater tax savings. Additionally, if the car is already a few years old, it may have already gone through its most significant depreciation period, which can make it a more financially attractive option.
What are the eligibility criteria for Salary Packaging a used car?
It is essential to keep in mind that not all used cars are eligible for novated leasing. The car must be less than 12 years old and have a certain amount of resale value to be eligible. Also, the financier may require an independent valuation of the car to ensure that the purchase price is reasonable and reflects the car's true value.
What is the difference between a novated lease on a new car versus a used car?
When it comes to salary packaging a car, many people assume that it's only possible with a new car. However, that's not the case. You can actually salary package a used car too. But what's the difference between salary packaging a new car versus a used car? Let's explore this topic further.
Salary packaging a used car
If you choose to salary package a used car, you'll be purchasing a pre-owned vehicle which may not have all the latest features and technologies. However, it could still be a great option for those who are looking for a more affordable option. Some of the benefits of salary packaging a used car include:
- Lower purchase price compared to a new car which can mean lower lease payments and potentially greater tax savings associated with a novated lease.
- Reduced depreciation rate - if the car is already a few years old, it may have already gone through its most significant depreciation period, which can make it a more financially attractive option.
- Potentially lower insurance premiums
- Less concern about minor wear and tear
Salary packaging a new car
On the other hand, when salary packaging a new car, you'll be purchasing a brand-new vehicle from a dealership. This means that you'll have the latest model with all the newest features and technologies. Some of the benefits of salary packaging a new car include:
- When you lease a new car, you are paying for the vehicle's full purchase price, including any dealer fees, taxes, and other charges. This means that your lease payments and tax savings will be calculated based on this higher amount, which can result in higher payments and potentially lower tax savings.
- Ability to choose the exact make, model, and colour of the car
- Warranty coverage for several years, offering peace of mind
- Lower maintenance costs as the car is new and doesn't require frequent repairs
- Potentially better fuel efficiency and safety ratings
What's the best option for you?
It really depends on your individual needs and preferences. If having the latest features and technologies is important to you, then a new car may be the best choice. But if you're looking for a more budget-friendly option, then a used car could be a great choice.
What is the process?
The process of getting a novated lease on a used car can be straightforward and hassle-free. Here's how it works:
- Find your vehicle: You can choose to buy a used car from a dealer or through a private sale.
- Contact AANT Salary Packaging: Once you have found the car you want to purchase, you should advise the vehicle seller that AANT Salary Packaging will be in contact to discuss vehicle purchase. This will help streamline the process and ensure that everyone is on the same page.
- AANT Salary Packaging will handle the paperwork: Once you have made your decision, your AANT SP leasing consultant will take care of all the paperwork, contracts, and financing. They will also liaise with the seller to arrange payment and delivery of the vehicle.
- Enjoy your new car: Once everything is in place, you can drive away in your new car knowing that you have secured a great deal through your novated lease.
Overall, the process of getting a novated lease on a used car is similar to getting a novated lease on a new car. The main difference is obviously that you will be buying a used car instead of a new one. With the potential to save thousands of dollars on your car expenses, salary packaging a used car can be a great way to stretch your budget further. And working with a reputable leasing provider like AANT Salary Packaging can help ensure that the process is smooth and hassle-free. Your leasing consultant will be there to help you every step of the way and answer any questions you may have
