If you’re in the market for a new company car, either for yourself or on behalf of an employee, it’s understandable that you may not want to spend the money outright on a new or used car. But if you’re opting for finance through your dealership, which option is right for you? At Nissan financial services, one of our most popular options is novated leasing which maximises tax benefits and minimise out of pocket expenses. Let’s take a closer look!
What is a novated lease?
A novated lease is a three way agreement between an employer, employee and the finance service. With this type of finance, the employer is the one who formally takes responsibility for the lease and the payments. The employee then provides the finances for the payments through a salary packaging arrangement with the employer. The amount on the lease, the running costs and Fringe Benefit Tax (FBT) will be deducted before tax from the employee’s pay. If an employee decides to shift job, the novated lease can shift from the employer to the employee or the lease can be moved to a new employee.
What are the benefits of a novated lease?
One of the best things about a novated lease is that the related expenses, including the lease, the running costs and Fringe Benefit Tax (FBT), are all take from your pre-tax wage which can then lower your overall tax rate for real savings. Although your employer takes responsibility for the lease, the vehicle is yours to be used as you wish. While some arrangements mean you can only use your vehicle for work reasons, you won’t have these types of restricted with a novated lease. Because the vehicle isn’t part of a fleet, you can choose which vehicle you like for the perfect fit for your lifestyle. Flexible lease terms are available, usually between one and five years, so you and your employer can find the best option.
The benefits aren’t just for the employee – employers also benefit from the novated lease arrangement. Offering a novated lease to your employers means you’re giving them an attractive incentive to have access to a new vehicle will little cost to your business. It also avoids the hassle of you having to organise a company fleet of vehicles, and the lease is transferred to the employee if they terminate their employment so you won’t be stuck with an extra vehicle that you don’t need.
Novated lease through Maddington Nissan
If you’d like to learn more about Nissan finance deals, speak to the experienced team at Maddington Nissan. We offer a range of finance options, both for individual and commercial customers. Our fully maintained novated leasing and salary packaging arrangements help you to minimise costs and get the vehicle of your choice.
For more information about Nissan finance rates, contact Maddington Nissan today on (08) 6444 6673.