– By Nigel Malcolm –
At first glance salary sacrificing sounds like an odd idea. You work hard for your money, so why on earth would you want to “sacrifice” any of it?
Well read on, because salary sacrificing is the smart way to get that new or used vehicle you’ve always wanted while keeping more money in your hands. In simple terms salary sacrificing is an agreement between you and your employer where you give up a portion of your pre-tax income for other benefits provided by your employer, such as a car.
By taking some of the expense of car ownership out of your pre-tax income, rather than your income after it’s been taxed, you get to hang onto more of your hard-earned dollars.
Salary sacrificing through a novated lease is the ideal way to maximise those benefits, bundling up all the expenses of running a car into one tax minimising package. There’s no difficult paper work for you to worry about – your lease provider should take care of all that for you. In fact the hardest thing about it is choosing your new vehicle.
Once you’ve made your choice your lease provider will source your vehicle and find you a finance package. Most providers can offer a fully maintained lease with fuel, registration, maintenance and insurance costs all included. Once you have decided upon the lease details there are a few more simple steps and the process is complete.
Choosing the right novated lease is all about looking out for the ongoing aspects of the deal. Yes, vehicle price is important, however there are other aspects which can and will have a big impact your novated lease experience.
These include;
- Was the quote based on realistic usage of your vehicle? Improper quotes can cost you down the road, so be sure the provider bases your installments on real usage figures.
- The fuel/maintenance network the provider has to offer.
- Phone and email customer support.
- Online access to your lease.
- Reminders and alerts for registration, servicing and other important aspects of your vehicle.
- Can you adjust your plan during the lease?
There are so many things to consider when looking at a novated lease for the first time. And like most transactions in life a cheap price doesn’t always equate to good value.
Nigel Malcolm is the CEO of Fleetcare which can provide a range of novated leasing solutions for any business.
