Is a novated lease right for you?
If you’re looking to buy a car, you may have heard about novated leasing, an arrangement between you, your employer and a finance company to use your pre-tax salary to purchase a car. Find out some of the things you need to consider when deciding if a novated lease is suitable.
Generally, there are a few steps to setting up a novated lease arrangement:
When deciding whether novated leasing is right for you, it could be useful to understand the costs and benefits, and what they could mean for your financial situation.
Speak to your employer to see if they offer novated leasing as an employment benefit and if you qualify. If you’re leaving your current employer and have an existing lease, discuss with your new employer whether you can transfer it to your new employment.
Additionally, check the finance company’s eligibility criteria to ensure that you meet the requirements.
Review the lease to ensure that it meets your needs. For example:
While potential savings on the price and running costs of a car can make a novated lease an attractive financing option, you’ll need to look at your requirements and situation to ensure that it’s suitable. You should seek professional, independent advice to determine any tax impacts novated leasing may have on your personal circumstances.
You should seek independent, professional tax advice to determine any tax impacts a novated lease arrangement may have on your circumstances.
Westpac’s products are subject to terms, conditions, fees and charges; and certain criteria may apply. Before making a decision, read the disclosure documents for your selected product or service, including the Product Disclosure Statement and T&Cs; and consider if the product is right for you.
The information in this article is general in nature and does not take your objectives, financial situation or needs into account. Consider its appropriateness to these factors; and we recommend you seek independent professional advice about your specific circumstances before making any decisions.