Are you looking for a new car in 2023? Will it be an EV? A lot has happened in the last 12 months that makes novated leasing a more attractive way to get into a new car.
In 2022 Australians elected a new Federal Labour Government and one of their first policy announcements was to provide an FBT exemption on zero emission vehicles to encourage the adoption of electric vehicles by business fleets.
It was approved by the Parliament late in the year and it applies to novated leases which means you don’t need to pay Fringe Benefit Tax if you buy an EV or PHEV. This significantly reduces the cost to lease an electric vehicle and will allow more people to experience silent, zero emission motoring.
Inflation and interest rates were the other big news of 2022. Everything costs more including new and used cars. One way to get more money in your pocket is through a novated lease. It’s like a pay rise because you pay all of your car expenses from pre-tax dollars and benefit from a range of savings.
This makes 2023 the year to investigate the benefits of salary packaging a new or used car and stop the squeeze on your household budget.
You may be able to finance your current car which will deliver a lump sum now without the hassle of finding a new car. Or you can trade up to something new that’s safe for your family, and packed with technology to make your daily commute more enjoyable.
Flick through the pages and see how we’ve grouped the cars. They’re categorised based on how they can be used. Then sorted by make and model. In the electric vehicle section, we’ve listed them from cheapest to dearest so you can see the most affordable options if you want zero emission motoring.
Looking at cars this way will let you match one to your lifestyle, and then help you narrow down the choices using the monthly rental. (The monthly rental is the cost to own and operate the car over three years. It includes fuel, maintenance, tyres, finance costs and depreciation.)
If you haven’t used finance to buy a car before, it’s not as complicated as you think because of salary sacrificing, where you pay for the car before you pay tax, it can be a lot cheaper to buy a car this way.
There’s lots of jargon – PAYG, GST and FBT. Though if you take the time to understand how it works, it will make sense. Still unsure? Talk to friends or family that have a novated lease. They’ll be the ones getting a new car every three years.
