Novated Lease Electric Car: What is a Novated Lease Electric Car Whirlpool?

With removing the fringe benefits tax for eligible electric vehicles (EVs), novated leases are more attractive than ever. But what is a novated lease exactly?

 

A novated lease is a three-way agreement between you, your employer and a leasing company. It offers numerous financial benefits as well as fantastic convenience. For more information about the novated lease electric car whirlpool, click here.

 

Tax savings

EVs cost around $10 less than internal combustion vehicles, so the savings are considerable.

 

And when you sign up for a novated lease, all the car-related expenses are paid out of your pre-tax income. It means you save on GST on the purchase price of your EV, as well as on the ongoing running costs.

 

Flexibility

Novated leasing can offer a degree of flexibility, depending on your situation. It can lower your taxable income by allowing you to claim deductions for fuel, registration, insurance and maintenance expenses.

 

You can also claim electricity usage, a big bonus for eligible EVs. Many EVs can be used to return electricity to the grid, which helps reduce Australia’s dependence on imported oil. For more information about the novated lease electric car whirlpool, click here.

 

Unlike a car loan, novated lease payments are deducted from your pre-tax salary (or fully pre-tax for eligible EVs), which can reduce your taxable income significantly. As with any financial product, speak with your financial adviser before deciding.

 

Reliability

Unlike car loans, where you’re technically the owner of your vehicle, novated lease vehicles come with complete maintenance and servicing packages built into your fixed payments. It includes registration, insurance and even fuel. Fully maintained novated leasing also offers peace of mind, knowing the most important aspects of your vehicle’s running costs are handled by experts who manage your lease.

 

While pure EVs have lower repair and running costs than their petrol counterparts, they still require registration and fuel (though novated leases can claim electricity usage from home charging stations). And if you’re looking at the Tesla Model Y, Kia EV6, or Volvo XC40 – which all qualify for FBT exemption – you may find waiting times for these models to become available can affect your day-to-day enjoyment of an electric car.

 

Flexibility

You can choose any new car with a novated lease. And since your novated lease payment is made from pre-tax salary (and potentially 100% pre-tax in the case of eligible electric vehicles), you can afford a lot more.

 

Another great thing about novated leasing is that the provider brings an extensive buyer network, meaning they can negotiate discounts with manufacturers. Plus, if you choose a fully maintained novated lease, servicing, registration, and fuel can all be included in your fixed monthly payments, significantly relieving your budget. For more information about the novated lease electric car whirlpool, click here.

 

Safety

The key to remember is that novated leasing does not technically involve renting or borrowing but rather a lease agreement between yourself and your fleet provider (like Maxxia). You are paying down the amount of the car you own, but realistically, you’ll never fully pay it off. It allows you to regularly turn over your vehicle and choose different models, brands or sizes depending on the offer.

 

Another significant aspect of novated leases is that fleet providers like Maxxia manage them. You don’t need to worry about the running costs, registration and insurance – these are all in your regular payments. If your employer doesn’t currently offer novated leasing, you can ask them to consider it part of their employee benefits package.

 

A novated lease is an employee benefits arrangement that involves your employer, yourself and a finance company. It’s an alternative to buying or leasing a car with your own money. Basically, your employer will take some of your pre-tax salary to pay for the vehicle and its running costs. In doing so, it reduces your taxable income and bundles all of your car expenses into one payment. It’s a great way to save on taxes and get the car you want.