If you are looking to get a tax deduction on your car repayments and running costs, then the first question you need to answer is …… do you earn a salary?
If the answer is YES, then you need to have a discussion with your boss.
1. Does your Boss agree to salary packaging your car?
If you are self employed and pay yourself a regular wage, then we guess you can ask yourself if you can salary package 😊
If you work for someone else, then you will need to speak to your employer if they will salary package of your car.
We will speak with your employer to cover off any of their questions prior to proceeding with your novated lease.
See this LINK for a Guide for Employers about Salary Packaging Cars.
2. Choose the car that suits your lifestyle
You may already know what car you want to drive, if so then this speeds up the process.
If you are at a loss as to what may be a car that suits your lifestyle and budget our consultants will assist you with the decision process including arranging a no obligation test drive of a suitable car.
If you prefer to do some online research, we recommend the following sources:
Once you have found the right car, you secure it via a contract subject to finance
3. Calculate your cash flow savings!
As an example, here is the cost of a $25,000, 3-year secured car loan through a Big 4 bank compared to a salary packaged novated lease.
- 3-year secured car loan $789 per month #
- Salary packaged novated lease $478 per month *
- Cash flow savings $3,732 PER YEAR
# Secured car loan rate – 8.49%, $12 administration fee per month and $250 application fee.
* Assumes $60,000 annual pre-tax salary. Residual due at end of lease is paid via sale / trade-in the car.
This is the savings for just the finance on the car. There are even more savings by salary packaging your running costs such as fuel, registration, insurance, servicing, tyres, roadside assistance and even car washes.
4. Apply for finance
The application for finance on a novated lease is quite straight forward.
Our consultants can take the application over the phone or we will send you an application for your completion.
Accompanying your application, you will need to provide a privacy consent, divers licence, recent payslip, and recent bank statement.
Once the finance is approved, we finalise your salary package for the full running costs of the car.
5. Settle the finance and pay the supplying car dealer
The finance documents are signed by you and your employer and we then submitted to the finance company.
Upon settlement of the finance the dealer is paid for the car.
Now enjoy your new car and the cash flow savings through salary packaging 😊
Need further information?
Check out of FAQs which we are sure will help answer allot of your questions.