Will a Novated Lease Save Me Money?
Driving a novated lease vehicle is not a bad idea if you have the option. Many people can bring their employer into the mix when leasing a new car, and the savings are significant. Even if you’re not sure how you save money with a novated lease payment rather than a traditional lease or purchase option, it’s easy to figure out and understand when you take a few moments to weigh the pros and cons.
Your Employer Makes Your Payments
You’re not getting a free car, however. Your employer might be making your payments, but that money is coming directly from your income. The good news, however, is this money is coming from your pre-tax income. This means you’re saving money and potentially bringing home a bigger paycheck. How? It’s a simple process.
When your pre-tax income is used to make your car payment, your taxable income is lower. This means you’re being taxed on less money, so you’re paying fewer taxes. If that change affects the tax bracket in which you fall into, you might even save more money. Most people who choose to go through the Stratton Novated Lease process at https://www.strattonfinance.com.au/novated-lease with their employer not only pay fewer taxes, they bring home more money in every paycheck because of fewer taxes being taken out.
You Get Discounts
Car manufacturers and dealers are more willing to offer vehicle discounts to corporations and companies than they are to regular buyers, so you’re saving more than just your pre-tax dollars. You’re also saving yourself a lot of money because of these discounts. You’re getting the same vehicle as other people driving down the same roads every day, but you’re paying less for it because you get to take advantage of the discounts offered by the fleet provider.
Your Financial Situation Improves
Do you have a problem making payments on time each month? Do you struggle with a budget? It’s hard for some people, but wouldn’t it be nice to know your novated lease payment is always being made on time and your credit benefits from it? That’s what happens when your employer is using your pre-tax dollars to make your car payment. It’s not late, you never miss a payment, and your financial situation improves because of it.
If the idea of getting into a novated lease is terrifying to you, do the math and figure out what you’re saving versus what you’re spending. You’ll find a novated lease can save you thousands of dollars each year compared to traditional financing. All you need to do is allow your employer to get into the mix.