In Sydney, a novated car lease is a three-way lease agreement between a NSW employee, an employer, and a financier. This agreement is ATO-approved and allows employees like you, to finance your new or used car, and all the running costs that go with it, using your pre-tax income.
A novated car lease term can be anywhere between 1 and 5 years. Depending on your needs, you can choose the length of the term and each monthly payment goes towards reducing the balance of your novated lease. Automatic deductions from your pre-tax salary means you won’t need to worry about remembering to make car payments or budgeting! At the end of the term there is a set residual to pay.
You’ll receive significant tax benefits with a novated lease and salary packaging, compared to financing the car on your own.
So, say goodbye to regular car loans and say hello to a novated lease – the most cost-effective and easiest way to purchase your new car.