Novated leasing is a smart and cost-effective way to buy a car, and at AANT Salary Packaging, we help our customers save thousands on the purchase price of their vehicle, as well as on GST and income tax. Our customers simply choose the car they want and use a portion of their pre-tax salary for repayments, and then enjoy driving.
But there are some myths surrounding novated leasing that we’d like to clear up.
Myth #1: I don’t earn enough money.
Novated leasing enables employees of any wage bracket or income to benefit. The savings kick in straightaway with the discounted purchase price on your car and savings on the GST. Thanks to our national buying power, you can benefit from substantial fleet discounts before you even get behind the wheel. Then factor in running and maintenance expenses, registration, fuel, servicing, tyres, and comprehensive insurance. All these costs are included in your Salary Packaging with a portion being deducted from your pre-tax salary as part of an affordable fixed monthly payment.
Myth #2: I can only lease a new car.
Not true! Novated leasing is not only for new vehicle purchases. You can take out a novated lease on a second-hand car or even arrange a lease agreement with your current car under a ‘sale and lease back’ agreement. Under a ‘sale and lease back,’ you can enjoy the perks of novated leasing on your existing car. AANT Salary Packaging will work with you to determine an agreed value, pay off the existing finance, or if you own it, you receive a lump sum of cash from the equity in your car.
Myth #3: I don’t do enough kilometres.
This is also not true. You can now reap the rewards of tax savings on the purchase of a car, regardless of how many kilometres you drive each year. And because your running costs are calculated according to how much you drive, you only pay for what you use.
Myth #4: I don’t own my car.
Contrary to popular belief, a novated lease does not mean you forgo ownership of your car. It’s simply a form of finance that allows you to purchase and manage your car in a more cost-effective manner, reducing your personal financial impact and tax liability. Under a novated lease, your car is registered and insured in your name, giving you full beneficial ownership. At the end of the lease, you have the flexibility to upgrade to a new car, refinance the residual, or pay off the remaining residual amount to keep the car.
If you have any other questions about novated leasing, please speak to one of the AANT Salary Packaging team on 08 8980 5799. We would be happy to arrange an obligation-free tailored proposal or a workplace visit at your convenience.
