Novated Car Leasing Sydney

Want to lease a car in Sydney? Yeah you do! A novated lease is the best way to drive a brand new car, and save you a bundle in income tax. If you’re looking for a reliable vehicle to get around Sydney but you’re not quite sure how to finance it, talk to Clear Lease! We can guarantee we’ve got the perfect lease package to get you out on the road. Read on to find out more about how it all works and how you can go about securing a novated lease in Sydney.

How does a novated car lease work?

A novated lease is an agreement where your employer finances your car lease through salary packaging. Put simply, every pay cycle your employer deducts a fixed amount from your pre-tax salary, which goes towards paying for the vehicle as well as insurance, rego and maintenance costs.

This might not sound particularly life-changing, but novated leasing actually offers a number of unique benefits you won’t get with any other financing options. Firstly, since the payments are taken pre-tax, you’re left with a lower taxable income. This can save you loads of money and is one of the main reasons people are attracted to novated leasing.

Additionally, all the payments are dealt with by your employer and Clear Lease, meaning everything is out of your hands. This can be a big stress-reliever for many people who just don’t have the time to keep on top of all of the repayments, rego, insurance and vehicle expenses. Even though the process is relatively hands-off for the customer, you’ll still be in the drivers seat for all the decisions.

At the end of the lease, you can even choose to buy the car by paying off the residual outlined by the ATO. This isn’t the only option though – you can refinance, look for an upgrade, or even continue for another term of your novated contract.

Drive your Dream Car Without Owning It

Your dream car can become a reality with our car leasing services. Novated leasing offers a much more affordable way to finance a vehicle than paying for it upfront or via more conventional means.

That being said, when your novated lease term finishes, you’ll be able to buy it by paying off the residual amount. This is a great option if you’ve fallen in love with your car and don’t want to part ways just yet. We can easily arrange to refinance the residual over a new loan term or you can pay it out in a lump sum, it’s up to you. Most often we find that our clients are keen for an upgrade and end up trading their car in for a newer model and continuing with a new novated lease. Once you get a taste for the savings, you won’t want to go back.

Comparing Finance Lease costs

Monthly Payment

With a novated lease, the cost of the vehicle is taken care of through regular (typically fortnightly or monthly) repayments. These payments are meticulously calculated and estimated, so customers always know exactly what they’re paying for. At Clear Lease, transparency is one of our core values.

The actual size of your repayments will depend on a number of factors, such as the cost of the vehicle, estimated annual kilometres and the balloon size (dictated by the ATO). You’ll also have the choice to include a range of insurance and maintenance costs, which can all be paid for via your pre-tax salary.

Servicing & Roadside Assistance

At Clear Lease, we offer both fully maintained novated leases and non-maintained leases. With a fully maintained lease, all of your vehicle expenses will be included in your repayments. This can be a big money saver, since you never have to worry about unexpected breakdown charges or maintenance costs.

If you’d prefer to take care of the costs yourself with your post-tax income, then a non-maintained lease is the way to go. The majority of people opt for a fully maintained novated lease because the tax savings are often significantly higher. Whatever you choose, Clear Lease will work with you to help get the most out of your novated lease.

Fees and Charge

Clear Lease typically includes a small management fee in the monthly lease payments. However, this fee will be quickly made up thanks to the impressive savings that are tied to a novated lease

As always, all the costs will be made fully transparent before you commit to anything and you’ll never get hit with any nasty charges. The admin fee depends on a number of factors and is always provided clear as day in our quote, we pride ourselves in being transparent every step of the way.

Running Costs:

Here are some of the running costs that can be included as part of a novated lease plan:

  • Car registration
  • Insurance premiums
  • Fuel costs
  • Servicing & maintenance
  • Tyres
  • Regular car washing

FAQs

A car lease is a great benefit for employees, as not only do they get to enjoy a brand new car, but the reduction in taxable income means they get to keep more cash in their pockets!

At Clear Lease, there are plenty of finance terms available to suit every budget and lifestyle. Novated leasing is a straightforward and streamlined way to drive your dream car for less.

From a financial standpoint, getting a car lease is worth it in the long run – you’ll be saving money and you can typically afford a more expensive vehicle on the same income.

It can come with some limitations that are not an issue when you finance a vehicle through other means – but the pros definitely outweigh the cons. If you’re still not sure, our team are happy to talk you through how it all works.

In recent years, novated leasing has become a widely popular choice for employees. As car prices continue to grow exponentially, lease payments are a preferred option because you don’t have to pay a deposit, nor do you pay GST on the purchase price on the vehicle. And importantly, you get to pay for the car with your pre tax income, giving less money to the tax man and putting more back in your pocket.

Those who sign up for a novated lease also have the option of including the maintenance and operational costs in their repayments. This can prove extremely cost-effective, especially considering that the payments are made pre-tax in one easy payment from your usual payroll cycle for the term of the novated contract.

What’s more, a car on a novated lease can be bought out at the end of the lease term by paying off the residual amount outlined by the ATO. In many ways, novated leasers get the best of both worlds!

This varies with each car lease company – our monthly lease expenses are determined by a number of things – the price and age of the vehicle, kilometre allowance, length of your car lease and which operational and maintenance costs you wish to include in your novated lease. You’re in the drivers seat in terms of what you would like to include in your contract. To get an accurate quote, see our novated lease calculator or for a more detailed quote contact our team for a full cost breakdown.

Employees aren’t the only ones who’ll have access to attractive novated lease benefits. Employers can also appreciate some of the big advantages that are on offer:

  • Remove work vehicles from your balance sheet
  • Your staff can choose a range of insurance, maintenance, and servicing extras to be included in their monthly repayments
  • There’s no need to worry about the risk and workload associated with owning a fleet of vehicles
  • If an employee leaves you won’t be left with a car you no longer need
  • Your staff get some amazing benefits from novated leasing and by offering this option, it in turn helps with staff retention.
  • You can negotiate with your staff to brand the vehicle with your business logo