Having recently looked at novated leasing options for RiotACT staff members, we quickly discovered the amount of misinformation that is running rampant throughout the industry. We turned to Phil Harvey, General Manager at Autovate
Novated Lease, for some advice and to dispel the common myths associated with leasing a vehicle.
“Novated lease doesn’t work anymore,” says Phil. “You hear this misguided comment far too often nowadays.”
“The truth is there are few tax-deductible items for the regular worker and novated lease is available to most people earning a salary.”
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Q. Don’t you have to travel a high number of kilometres to make it worthwhile?
A. No. The misconception is you need to live in your vehicle to get the real benefits of a novated lease. With changes to FBT legislation last year, just about anyone who running a vehicle will benefit by putting their car through a tax-effective arrangement.
Q. Don’t you need to be on a high salary to afford repayments?
A. With the inherent tax savings through competitive leasing rates, anyone who’s employed and running a vehicle will benefit from a novated lease, regardless of your annual income.
Q. Why does information from leasing providers vary so drastically?
A. The problem with most novated lease providers is they only focus on the tax savings, without giving their clients the full spectrum of advice. At Autovate, our point of difference is we thoroughly explain every aspect of the leasing agreement to our clients, ensuring they’re presented with all the facts to make an informed decision.
Q. It sounds too complicated, why should I bother?
Novated lease is simple. You’ll receive huge discounts on new cars, fuel, servicing, maintenance, tyres, and insurance specifically designed to cover you for any unique circumstances you encounter under a leasing arrangement. Combined with Autovate’s personalised service and competitive rates, you’ll be amazed at how you can reduce your motoring costs and keep more money in your pocket as a result.
Q. How do I find the right provider?
It’s important to find a provider that understands your needs. At Autovate we pride ourselves on a low-pressure, education approach that clearly explains every aspect of the leasing arrangement to ensure you’re always up to speed. Our team of staff have a wealth of industry experience to help answer any of your questions.
We’re certain there are more questions relating to this topic so we’ve arranged with Phil to answer your questions in the comments section below.