Frequently Asked Questions
How is a novated lease paid for?
The vehicle and the running costs are paid to the leasing company by your employer who makes these deductions direct from your salary.
A simple annual budget to manage all your running costs including fuel, maintenance, service, registration and insurance is established avoiding being hit with any lump sum costs.
How does a novated lease compare to a car loan?
There are many ways to save with a novated lease:
Pay less tax – with a novated lease you could pay less tax because part of your payments come out of your pre-tax. With a regular car loan your payments come out of your after tax income so you could miss out on these savings.
Save on GST – When you source a new car from CarBundleit you don’t pay GST on the purchase price up to a maximum of $5224.18.
Reduce your running costs – Your leasing company will have national relationships with suppliers nationwide and can assist you to get competitive pricing.
Why should I choose a novated lease?
Your leasing company will manage the administration of your novated lease including booking your car in for a service, tyres and maintenance, you will have a fuel card, and your insurance will also be taken care of. No extra hassle for you.
Your running costs are broken down into monthly manageable payments rather than large lump sum amounts.
You can choose the car you want to buy. New Used or even your existing car can be novated.
What happens if I Change jobs through my lease term?
If you have a novated lease, its ok to change jobs during your lease term. Your options will be
Pay the amount owing and buy the vehicle outright
Continue paying the lease rental yourself
Transfer the novated lease to your new employer (subject to new employer approval)
What happens at the end of the lease?
A novated specialist from CarBundleit will contact you 3 months before the end of your lease to talk you through your end of lease options:
At the end of your lease, you may be able to:
Keep your car: payout the remaining balance owing
Refinance the car
Upgrade to a new car
Do I earn enough to benefit from a novated lease?
You don’t have to earn a high income to benefit from a novated lease.
Lots of people believe that novated leasing is for high income earners but this is not the case.
For example, an employee with a salary of $60,000 could save $2500 a year on a novated lease.
With a novated lease you could even get a car that you otherwise couldn’t afford, this is because of the tax benefits and the lease repayment being less than a traditional personal loan.