Understanding the Benefits of a Novated Car Lease in Adelaide
If you are looking for a way to drive a new car while keeping more money in your pocket, then a novated car lease in Adelaide with Alliance Leasing might be the right option for you. Novated vehicle leases are unique because instead of being a two-way finance agreement between you and a bank or leasing company, they are three-way agreements between you, your employer, and the leasing company. There are numerous benefits to this structure that you should know about before buying or leasing your next vehicle.
Benefits of a Novated Car Lease in Adelaide
There are numerous reasons to choose a novated vehicle lease over other types of car leasing in Adelaide. Here are a few of the top benefits of this type of lease.
- You can bundle all your car-related expenses into one payment: Most car leases are similar to renting an apartment: your lease payment covers the right to use the car but not other expenses such as fuel, maintenance, or insurance. At Alliance Leasing, we can arrange a novated lease that combines all your vehicle expenses into one convenient payment.
- Novated leasing is tax-effective: The other significant benefit of novated leasing is that your payments are primarily made pre-tax. Paying for vehicle expenses pre-tax reduces your taxable income, which means paying less tax and keeping more money in your pocket—all without having to settle for a subpar vehicle.
- You don’t pay GST: In a novated lease, your employer covers GST. These savings can drop the overall purchase price of the vehicle by roughly 10 percent.
Tips Regarding Vehicle Leasing in Adelaide
As your review options for vehicle leasing in Adelaide, keep these tips in mind.
- Think long-term: What happens at the end of your lease? With a novated lease through Alliance Leasing, you can choose to sell or trade in your car and start a new novated lease. If you sell, you get to keep the surplus earnings—and you get to keep them tax-free. Alternatively, you can refinance to continue leasing the car at a lower rate or pay out any residual value and own the car outright.
- Think about convenience: The convenience of a novated lease often makes it preferable to any other type of car lease in Adelaide. You get fuel cards to take care of your gas expenses, and you get to turn over your maintenance and service bills to us. You only have to make one payment to cover everything. Finally, you don’t need to meet typical lease requirements such as keeping your travels under a certain number of kilometres.
- Consult with your employer: With any novated lease, your employer must be willing to enter into the agreement. Employers can get benefits, too, such as fleet discounts on all makes and models of vehicles, fuel, tyres, servicing, and more. Discuss these benefits with your employer to see if they will become a part of your novated lease agreement.
Why Customers Should Use Alliance Leasing
Too many consumers spend money on leases each year without unlocking the value that they would get out of buying a car. A novated lease is one way to win some of that value back. Contact us today to enquire about a novated car lease in Adelaide.