A novated lease is a three-way agreement between you, your employer and the leasing company. It’s a great way to save money on your new vehicle.
Fleet discounts for fuel, tyres, servicing and registration, and one monthly payment covers everything. It’s also possible to save extra through fringe benefits tax exemption on eligible low and zero-emission vehicles. For more information about the car leasing Adelaide agency, click here.
Novated Lease
A novated lease is a three-way agreement between you, your employer (if a novated lease is part of your employment package) and a finance company. It’s a form of salary packaging that allows you to run a car from pre-tax earnings and save on GST.
If you choose a fully maintained novated lease, you’ll receive a monthly payment that bundles all of your vehicle expenses, such as fuel, servicing, registration, tyres and breakdown assistance. It’s important to seek tax advice to understand how a novated lease will impact you and your employer.
You can also choose a non-maintained novated lease where you only get the monthly leasing payment. This option can be more flexible, but you must fund any shortfall yourself.
Finance Lease
Car leasing in Adelaide involves an employee and their employer agreeing to a lease that the company will financially back. It is an excellent option for those who do not have the budget to buy a new vehicle or may need a temporary solution for their transport requirements.
All novated lease payments are made from pre-tax salary, which can help reduce your tax payable. Additionally, your employer will cover GST on the car costs, which can further reduce the vehicle’s purchase price. For more information about the car leasing Adelaide agency, click here.
Benefit from convenience with a finance lease, as all vehicle costs, including registration, insurance, servicing, maintenance and roadside assistance, are covered by one fixed payment. You can get fee-free fuel cards and discounts on other services and parts.
Myfleet
A Myfleet package includes all the benefits of a novated lease plus before-tax savings on most running costs. These include fuel, tyres, servicing and maintenance, rego, CTP (NSW), insurance, roadside assistance, and more.
My fleet offers fleet management software that tracks vehicle dashboard data in real-time. It helps managers understand driver behaviour, implement Electronic Work Diaries and manage the Chain of Responsibility.
This car finance option allows you to claim all of the GST in your lease payments, so it’s a great choice for small businesses. It’s also an excellent alternative to purchasing a vehicle outright. However, it’s essential to consider the upfront costs and long-term expenses. Talk to us for advice on the right choice for your business.
Commercial Hire Purchase
Hire purchase is a popular finance option for businesses looking to buy newer cars. Funding vehicles and equipment is cost-effective because repayments are deducted before tax, and the assets can be removed on your business’s next BAS. However, there are some disadvantages to this type of loan: You do not own the vehicle, and you must pay for gap insurance if it is stolen or destroyed before you have paid off the total balance. For more information about the car leasing Adelaide agency, click here.
A commercial hire purchase in Adelaide involves a financier purchasing the vehicle on your behalf and hiring it back to you for a set fee. This allows you to claim the annual investment allowance and may help you avoid a capital gains tax liability in the future.
Chattel Mortgage
A chattel mortgage is a form of financing used to purchase vehicles, machinery and equipment. It can be a good option for businesses that need to claim GST on their purchases.
It also makes sense for manufactured homes fixed to piers, wooden pillars, and heavy equipment, such as tractors. This type of finance can often offer lower rates and shorter terms than conventional loans.
It’s essential to consult a business-oriented broker when choosing a chattel mortgage, as they will be familiar with the best packages and products. They can help you find a lender that offers competitive repayment terms and quick approvals. They may even be able to save you money through tax deductions and other benefits.
