Do you already have a novated lease for your work vehicle or considering getting one? You may be able to novate a car for your spouse or children as well. Each employer has different rules regarding this, however, most employers will allow more than one vehicle to be purchased under a novated lease. And the savings can be significant.
Arranging a new lease with a longer term allows you to pay for multiple cars through a novated lease, without losing money to tax. Novated leases already come with some serious rewards, including GST and tax savings, but why should you consider having two? Here are the benefits of novated leasing the family car for your wife/husband/spouse or children:
Invest in a Safer Car for Your Child
When your teenager is ready for his/her own car, you want to trust they’re driving something reliable. Cheap cars are cheap for a reason. Whilst it may look like a great bargain, dodgy replacements and other issues associated can cause costly headaches later.
Leasing an additional car ensures your child has access to one that lasts the distance. Invest in better peace of mind, by investing in a vehicle with airbags, safety features and a warranty included, all under a novated lease. This arrangement allows you to get them a new car, without the hefty price tag attached.
Car Requirements Change
As your family grows, your car requirements change. If you need a bigger car urgently and don’t have the funds to purchase one that fits your needs, leasing another vehicle with your current novated lease can be a smart financial move.
When you have one, two or more kids, space becomes a necessity – not a luxury. Little humans need a lot of stuff, despite their size! And budgeting for a family car that caters to them (and you) is hard. Funds aren’t always readily available. When you add the additional expenses to the mix, like registration, insurance, fuel and maintenance, a novated lease makes sense to pay for everything from your pre-tax dollars.
All-Round Cost Savings
With all these running costs included in a novated lease, the all-around cost savings are huge. Because all expenses are put through as the one payment, it contributes to improved savings from your pre-tax income. You won’t just be saving money on your car, but all the vital expenses that go with it too, making it a beneficial option for employees and families.
Easy to Manage Expenses
Novated leases are consolidated into one easy-to-manage payment which it makes it easier for employees and families to manage their expenses. Buying a new car, as well as all the additional (but necessary) costs that go with it, isn’t something every family can afford. Novated car leasing makes it possible, providing flexibility, payment ease and substantial cost savings.
Novated leases can be put under the highest income worker in your family. Not only does this maximise the tax benefits, but it enables other people within your household, like your spouse or children, to utilise a new car under the agreement too. Plus, you – and your immediate family – gain access to a newer and more reliable vehicle than you would be able to if you had to pay for it outright with cash.
Throughout novated leasing, you will still be able to switch jobs and transfer the lease to the new employers too. You’ll also be able to choose the model and make of the car you wish to lease, providing the lease repayments can be made on the vehicle with your current paycheck.
Author: Jayde Ferguson
Founder of Toward Music, Jayde is a scripturient with a consuming passion to write. With 12 years experience as a freelance music journalist, she’s also a dedicated writer in the business industry with an undying love for typewriters & street press.