The benefits of a novated lease are by no means a new thing. The significant tax savings available are generally the reason why drivers are interested in knowing more about what novated leasing has to offer.
Combined with easy-to-manage payments and access to a great car for less, it’s easy to see why leasing a vehicle has become such a practical, cost-effective option. But the benefits go well beyond the already fantastic tax savings and additional perks, it can help you budget multiple vehicle costs. Here are some of the bonuses of a novated lease you probably haven’t thought of yet:
Car Registration Costs
Picture this: You’ve worked hard to get the approval for a bank loan or saved up your money to buy that new ride you’ve been dreaming about for months. You finally get those new car feels (and boy, does it feel great). The initial costs of forking out for your new car even covered the 12 months registration, so no need to worry about that for a while. Fast forward down the track and re-registration is due, along with your yearly insurance premiums, your rent (or mortgage) and a pile of other bills that need to be paid – urgently. It’s not a pretty picture, but one we’ve all experienced at one point in our lives.
Bills – and car registrations – never come at a good time. And there’s nothing worse than scraping funds together or worse, letting it lapse only to be slapped with more additional costs and penalties. The solution? A novated lease. Besides the tax savings, one of the biggest benefits of taking out a novated lease is these dreaded expenses are covered. You still pay the bill, but instead, it’s consolidated into your regular monthly novated lease payments.
It’s the extra running costs to keep your car on the road that work out expensive. But when they’re included in your payments, you’re paying for the registration costs using pre-tax dollars, which ultimately puts more spending money in your hand and eliminates the nasty bills at the end of the year.
Other vital operating costs, like car insurance, can also be included in your novated lease payments to help budget the essentials and reap the pre-tax dollar rewards. When you purchase a car, most dealerships won’t let you leave the car yard until you show proof of vehicle insurance. It’s one of those expenses that’s necessary to take out, but combined with all the other bills, it can work out expensive too.
By taking out a novated lease, you have the added benefit of budgeting for these costs and including them in your monthly payments. This eliminates the end of year bill or forking out money on top of your car payments each month to cover car insurance too.
The Need for New Tyres
Eventually, your new car will need a new set of tyres too. Whilst it’s not usually a cost we think of when we first purchase a car, it’s definitely one that creeps up on you when you least expect it. And boom – you’re slammed with more running costs to keep your ride on the road. The benefits of paying for big-ticket items with pre-tax dollars also comes into play when purchasing tyres for your car too. Making sure your tyres are safe is imperative and unfortunately, it can be easy to skimp on when funds are running tight. With a novated lease, however, there’s no excuse not to spend the money to keep your car safe on the road.
Regular Vehicle Maintenance and Servicing
You owe it to you and your family to have a safe car and a novated lease helps in making sure servicing remains up to date and tyres are roadworthy. With a fully maintained lease, you have access to regular car maintenance and servicing with pre-tax dollars. Some leases enable you to go with your chosen or current supplier or they’ll give you access to qualified mechanics. Service costs are pre-authorised and packaged under your lease. You can also get your car cleaned and detailed to keep things in top shape. Making sure your car remains in good condition and the maintenance books are up-to-date are essential when the time comes to trade your car in. Thus, these added benefits help you stay on top of everything and budget the costs so you don’t fall behind.
A fully maintained novated lease includes vehicle-related expenses such as fuel, registration renewals, insurance renewals, maintenance and repairs, car washes, tyres and roadside assistance. All these benefits, including the pre-tax savings that come with a novated lease, make it a viable option for many drivers. For more information about how Easifleet can help you with your novated lease, chat to one of our staff today.