Salary Package Car Lease
Save Money and Drive with Convenience Using a Salary Package Car Lease
Most businesses that provide company cars for their employees haven’t heard of the benefits of a salary package car lease. As a result, both the business and its employees are paying too much for the car and its maintenance. Alliance Leasing has a better way of handling these agreements, called salary packaging or a novated lease.
Key Questions to Ask Alliance Leasing about Salary Packaging Car Arrangements
Many people are unaware of how salary packaging works when it comes to employer-employee car leases. We’ve compiled several common and important questions that we think you should know before signing up for this kind of agreement:
- How does a package car lease save money?
When we create a salary package lease, the employee saves money by paying entirely with pre-tax income. The employer agrees to pay for a portion of the salary package and directly pays Alliance Leasing for the vehicle’s costs. Whatever portion of the car’s cost and upkeep that the employee responsible for comes entirely from their gross salary as an employee contribution.
- Who is responsible for paying for the car’s maintenance?
We are the first payer for all maintenance and fuel that the car needs. No longer will the employee or employer need to provide payment and seek reimbursement or pay out-of-pocket from profits. Instead, we receive the bills and pay the costs, with the entirety of your expenses built into the lease agreement.
- Do I need to keep detailed logs?
No, we take care of the logistical tracking for you so that you can focus on your job and enjoying the comfort of the car. This easy form of maintenance tracking is a great benefit that comes from using salary packaging for your lease.
Benefits of a Salary Packaging Car Lease
There are many positive aspects of salary packaging, so we’ll highlight several of the most important opportunities for savings and convenience:
- We don’t require a deposit for the leased vehicle. Instead, the company directly leases the vehicle from us, then works out the employee contribution via payroll. All fuel and maintenance costs are handled through the regular lease payment structure, so it simplifies accounting for the business and saves money for the employee.
- The savings specifically work out to 10% on the initial lease due to there being no need for the employee to pay the GST. Additionally, we secure discounts on the vehicles and maintenance, so both the company and employee save more by spending less on fuel and car service.
- Salary packaging arrangements are also incredibly convenient. You no longer have to worry about paying for the maintenance costs or even fuel – Alliance Leasing takes care of that for you directly. There’s no logbook and no limitations on the kilometres you travel, which makes things better for everyone.
About Alliance Leasing
We’ve been providing salary package leases since 2015 and have developed an effective system with a network of service providers. Our business centres on our customers, so we ensure that our service is top of the line. We use only the most reliable vehicles and ensure that you stay moving wherever you go. Contact us to learn more about salary packages and novated leases.