A novated lease electric vehicle is an excellent way to get on the road while being environmentally friendly. Not only can you save on fuel costs, but you’ll also reap all the rewards of owning a car and paying less tax!
A novated lease is an ATO-approved vehicle finance solution that enables employees to purchase cars using their pre-tax salary. It helps lower taxable income and boost the value of their remuneration package.
Save on fuel costs
Electric vehicles offer an eco-friendly alternative to petrol cars. Not only do they save fuel costs, but they’re much cheaper to run due to having fewer mechanical parts. So as well as cutting down on emissions, electric cars also save money in terms of servicing and upkeep – saving money both ways!
If you’re searching for a vehicle that will last you years, an electric vehicle novated lease is worth considering. They provide drivers with excellent value for their money.
A novated lease electric vehicle is a car financing arrangement involving you, your employer and a finance company.
All three parties agree that you will pay them a fixed amount each month for an agreed-upon term. In exchange, they will take care of everything related to your vehicle – insurance, servicing, fuel, registration, roadside assistance and tyres.
You may use a novated lease to obtain either a new or used vehicle, though be aware that the residual payment at the end of your lease is determined based on the ATO’s valuation of your car, not what you paid for it.
Due to this development, novated leases are expected to become one of the most cost-effective vehicle acquisition methods. As a result, they’ll be ideal for drivers seeking to positively impact the environment while saving money and reducing their taxable income.
Enjoy all the benefits of owning a car
One of the significant advantages of owning a car is having the freedom to go where and when desired. This independence can be especially advantageous for those with hectic schedules who may find their daily routines disrupted due to a lack of transportation options.
Another great advantage of owning a car is that it helps you save time. This freedom allows you to travel at your leisure and choose which route you take when going somewhere, which is especially beneficial if your job requires frequent relocations or you work from home as a freelancer.
Owning a car makes travelling and exploring new areas much simpler. It can be especially advantageous when planning holidays or visiting another city and for families with children who wish to bring their parents along on the adventure.
If you’re searching for an eco-friendly vehicle, novated lease electric vehicles might be your best bet. These cars are considered highly eco-friendly and more cost-effective than petrol cars.
Furthermore, they require less expensive to repair and maintain. It can be advantageous for those with hectic schedules or tight budgets.
Electric vehicles (EVs) are eligible for the Electric Vehicle Discount, which offers considerable tax savings to drivers who use them. Drivers can deduct the cost of a vehicle from their pre-tax income, leading to significant tax reductions over the life of the lease and more disposable cash for other purchases.
By opting for a novated lease, you are working with your employer and vehicle financier to create an arrangement that includes all running costs associated with owning and running your car – such as petrol, insurance, registration and maintenance – taken from pre-tax salary. Doing this can result in substantial tax savings over the life of your lease.
Save on tax
Are you considering switching to an electric vehicle (EV)? A novated lease electric vehicle can be an attractive option for getting on the road without breaking your budget. With this type of financing, you can reduce emissions while using thousands of dollars in savings from decarbonising transport.
With a novated lease, all car payments and operating costs associated with owning and running an electric vehicle (EV) are combined and taken out of your pay before tax by your employer – hassle-free. It means fuel, maintenance costs, registration fees and insurance are included in the repayment amount.