Cost of living hike shows now is a good time for a novated lease

Does it ever feel like each year inflation rises quicker  than your pay packet does? The cost of living is one of the most pressing issues in modern society. After all, if more people are able to afford fewer essentials, their lifestyles become less comfortable, and that's not a sign of a society moving forwards.

According to a February survey from Essential Report, 71 per cent of Australians think the cost of living has gotten worse than they did 12 months previously – only 7 per cent said their position was now better overall.

Novated leasing is one of the few things you can do to improve your lifestyle while also paying less.

While we wait for policymakers to help out the average Australian family, there are things families can do to even the keel, like looking at a novated lease. Household budgeting is fine, as is cutting back on your luxuries, but novated leasing is one of the few things you can do to improve your lifestyle while also paying less.

Essentially, it means paying less for a new car because you're doing so through your pre-tax earnings, saving 10 per cent on the initial price tag and potentially lowering your income tax bracket.

Once your car is out of the dealership, novated leasing also helps Australians with some of their biggest car costs, such as…

1) Fuel

Essential Report asked whether Australian households are paying more or less for certain necessities, such as fuel, than they did two or three years ago. Overall, 48 per cent say they are paying more for petrol, while only 25 per cent spend less today – and that's despite fuel costs reportedly going down.

With a novated lease, your car's fuel is packaged into a pre-tax payment, saving you money.

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2) Insurance

Another ongoing cost that is bundled into your novated lease savings is insurance.

Cover in general is costly, and it's proving to be a headache for the great majority. Sixty-two per cent of Australians say their insurance costs have gone up in the past 12 months, while a mere 4 per cent have seen a reduction.

3) Servicing

According to Fixed Price Car Service, the average cost to get a Hyundai i30 checked out ranges between $357 to $812 for a 60,000-kilometre service. No small amount of money, and one that – like everything else – can creep up with the cost of living.

It's something else that can be discounted by your novated lease provider, saving you money every three to six months or a year, however often you take your car into the garage.

Want to reduce the cost of buying a new car? Novated leasing is incredibly popular in Australia – and it's easy to see why. Give Alliance Leasing a call on 1300 22 55 82 if you'd like a helping hand.