Many people have misconceptions about Novated Leasing that prevent them from reaping the benefits of packaging a motor vehicle; so, we are helping you understand the common myths!

  • Myth 1 – I don’t drive enough kilometres
    Reality – There is no minimum target to reach and there can be tax savings received regardless of the number of kilometres driven.
     
  • Myth 2 – Only new cars can be salary packaged
    Reality – A new, demo, used or your current car can be salary packaged and the car can be under lease until it is 15 years old.
     
  • Myth 3 – Accessories cannot be added to the car
    Reality – Finance is arranged for the total cost the vehicle including any desired accessories.
     
  • Myth 4 – The car is handed back at the end of the lease term
    Reality – There are three options at the end of a Novated Lease:
    • 1) Refinance the residual balance and continue to package the same vehicle.
    • 2) Sell/Trade the car, pay out the residual and get a new car.
    • 3) Pay the residual and keep the car.
       
  • Myth 5 – It’s too good to be true!
    Reality – The Australian Tax Office has approved Novated Leases and many employers across the country offer this as a benefit to their staff.