Novated Leasing with Clearlease: A Clear Advantage for Your Car and Finances
Are you considering purchasing a new car and looking for the best financial option? Look no further than a novated lease with Clearlease. Not only does it offer a range of benefits and income tax savings, but it also allows you to package your vehicle into your pre-tax income. In this blog post, we’ll guide you through the world of novated leasing, helping you understand how it works, the tax advantages it offers, managing running costs, and the end-of-lease options available to you.
Understanding Novated Leasing: A novated lease is a three-way financial arrangement involving you, your employer, and a lender. It can last between one and five years and presents a win-win situation for you and the taxman. By making most of your repayment costs from your gross income, you can potentially pay less tax. Additionally, novated leasing allows you to choose the car you desire, whether it’s new, used, or even your existing vehicle, as long as it’s within 7 years of age.
Tax Advantages of Novated Leasing: One of the primary benefits of a novated lease with Clearlease is the reduction in taxes. As your lease payments come from your pre-tax income, you’ll likely have more disposable income, which can be used for family holidays, dining out, or indulging in your favorite hobbies. Furthermore, when you buy a new car through a novated lease, you won’t have to pay the Goods and Services Tax (GST). While the government imposes Fringe Benefits Tax (FBT) on lease payments, Clearlease can help you offset it through the Employee Contribution Method (ECM), resulting in potential FBT savings.
Managing Running Costs: Novated leasing offers the advantage of predictable and evenly spread running costs. Your regular payments cover various expenses, including car registration, insurance premiums, fuel costs, servicing and maintenance, tires, and even regular car washing. By estimating your annual fuel and running costs in advance, Clearlease ensures that there are no bill shocks or unexpected expenses throughout the year. You can also make adjustments if your driving situation changes, maintaining a consistent payment amount throughout your lease.
End-of-Lease Options: When your novated lease term comes to an end, there are several options available to you. You can trade in your vehicle and use the money to make the lump sum residual payment, then start a new lease for a new car. Alternatively, you can enter into a re-novated lease, paying the residual lump sum while keeping your current vehicle. If you have savings, you can use them to cover the residual payment and keep your beloved car. Finally, selling your car and utilizing the proceeds to make the lump sum residual payment is another viable option.
Choose Clearlease for a Clear Advantage: Clearlease stands out as a leading provider of novated leasing, offering a larger panel of lenders, comprehensive insurance products, and competitive deals. With Clearlease, you gain access to a wide range of financing options and benefit from their negotiation skills to secure the best price for your desired car. Their expertise and experience in the industry ensure that you receive exceptional service throughout the process.
Novated leasing with Clearlease presents a compelling opportunity to drive your dream car while enjoying financial advantages and tax savings. By understanding how novated leasing works, its tax benefits, managing running costs, and the end-of-lease options, you