Who wants a new car for Christmas?
Christmas is a great time to consider a new car. There are end-of-year runout deals, model clearances, or maybe an eagerly awaited new release to look at.
If you are thinking about a new car, you’d be well advised to see how much better it could be if you got it through a novated lease.
It’s still your shiny new car – registered to you and yours to drive however, whenever you like – but you will enjoy some great extra savings and some handy tax benefits too.
When you get your car through a novated lease, you pay for the vehicle and its operating costs via salary deductions. Your employer makes deductions via payroll on your behalf, and pays the finance and operating costs to LeasePlan.
What is included in a novated lease?
A good novated lease will bundle all vehicle-related expenses into one monthly payment.
This means no nasty bill shock when insurance or registration is due, or at scheduled service times.
As well as the finance component on the car, the payments on a LeasePlan novated lease will cover:
- Fuel - You receive a fuel card so you can fill up anytime and enjoy cashless driving.
- Repairs and maintenance - Vehicle servicing is also included, and is checked and authorised by a team of qualified mechanics to ensure any work carried out is necessary and completed at the best price.
- Registration and CTP - Initial registration and annual renewals. That means there is no need to find the cash when the registration and CTP is due each year because it’s already covered.
- Comprehensive insurance - Insurance with competitive premiums is also included as part of the packaging benefit.
- Tyres, batteries and windscreen - Any replacement tyres, batteries or windscreens you may need during the term are also included.
- Roadside assistance (RA) - Roadside assistance is provided complimentary by the vehicle’s manufacturer, and is only included in lease payments when, and if, the manufacturer’s roadside assistance does not cover the full lease term.
What are the benefits for the employee?
- Tax-effective payments of lease and operating costs;
- Save GST on car purchase, fuel, servicing, parts and labour;
- Savings above retail on operating costs (fuel, maintenance, repairs, etc.);
- Choose any car (new and used); and
- A potential lump sum benefit if the vehicle is sold at the end of the lease.