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.