NOVATED LEASE

What is a Novated lease?

A Novated Lease is one of the easiest and most cost effective ways to buy and own a car. Simply it’s a three way agreement between the Employee, the Employer and the Financier. It allows an employer to provide executives and staff with the benefit of a salary-packaged vehicle of their choice without the employer taking the risks of ownership. Under this agreement the employee is the leasee and is responsible for the vehicle they select for the duration of the lease. The employer, on the other hand, is the sub-leasee and is responsible for meeting the leasing costs for the lease term or for the term of employment (whichever is the shorter).

For peace of mind, the employee may elect to take “gap” cover, which is offered in conjunction with Weblease’s comprehensive insurance package. This is designed to provide protection against the costs of lease payout required as a result of involuntary termination of their employment.

There are over 400,000 Novated Leases in Australia. Many are popular in the Government sectors including Police, Teachers and Nurses. It makes sense with the numerous benefits on offer to consider a Novated Lease for your vehicle.

Maximise your salary – Use your pre-tax dollars for lease repayments to reduce your taxable income. These savings can be significant over the term of your lease.

No GST – You don’t pay GST on the purchase price of the vehicle you secure and the running costs. This is great considering lease terms are generally between 2 and 5 years.

Budget for the future – Budget for ongoing costs by packaging your vehicle’s running costs, including fuel, registration, maintenance, insurance with the car finance.

New and Used cars – Choose to use a Novated Lease on any car of your choice, whether it’s brand new, used, or even your existing vehicle. We’ll source it for you.

End of lease options – You could trade in for the latest model after paying the residual payment, purchase and keep it, refinance, extend the lease or sell it to pay the residual. It’s your choice.

Simplicity- Take the hassle out of managing your vehicle with one easy monthly payment that bundles your fiance and running costs.

Make your employees’ salaries go further. Novated Vehicle Leasing helps them access potential tax benefits and cost savings for your business. These Include;

Maximise Employee Benefits – it can be competitive to hold onto to good employees. Show your Employees that your organisation can provide extra benefits that provide simple solutions and cost savings for them.

Access Working Capital – free up working capital and internal labour resources for your company to invest into your business. Monthly repayments spread the financial load for more effective use in other parts of the business.

Reduce PAYG liability – minimise your tax burden by utilising the benefits of Novated Leasing. Simplicity in all your business processes means concentrating on things that matter to you.

Reduce paperwork – consolidate everything into one simple invoice, making things easy to manage and easy to budget. Total transparency when it comes to the financing and maintenance costs of your vehicle.

Hyundai i30 Active 2.0

Term: 36 months / 60,000km’s
Purchase Price: $24,205.30 incl GST ($2,033.14)
On Road Costs: $1,840.80
FBT Value: $22,364.50
Amount Financed: $22,434.96
Residual Value: $11,400 (paid at end of lease)

Payments:
Monthly Finance Payment: $427.24
Maintenance Costs: $471.64
Total Lease Payment incl GST: $898.68
Monthly Reduction in Take Home Pay $685.87 (based on a salary of $60,000 per annum)

SAVINGS PER YEAR $2,553.65

(based on a comparison of a private finance agreement assuming the monthly repayments and running costs are the same in both scenarios)

Mazda CX-5 Maxx Sport Wagon 2.0

Term: 36 months / 60,000km’s
Purchase Price: $35,240.50 incl GST ($2,995.86)
On Road Costs: $2,286.00
FBT Value: $32,954.50
Amount Financed: $32,507.44
Residual Value: $16,600.00 (paid at end of lease)

Payments:
Monthly Finance Payment: $617.20
Maintenance Costs: $524.53
Total Lease Payment incl GST: $1,141.73

Monthly Reduction in Take Home Pay $900.87 (based on a salary of $60,000 per annum)

SAVINGS PER YEAR $2,890.31

(based on a comparison of a private finance agreement assuming the monthly repayments and running costs are the same in both scenarios)