The 2023 Car Leasing Guide is now available from Fleet News Group. You can download a copy here, or email us to get a hard copy.
Inside you’ll find 40 pages of information on novated leasing including detailed information on 224 vehicles explaining the monthly rental and the annual savings with salary packaging.
Some people say it’s like getting a pay rise when you buy a car (new or used) using novated leasing because the amount of money you take home each month increases.
Yes, buying a new car can help you save money! How? By using a salary sacrifice arrangement to pay for your car before you pay tax.
The Australian Tax Office website describes it like this;
“Salary sacrificing is also known as salary packaging or total remuneration packaging. You and your employer agree for you to receive less income before tax and in return your employer pays for certain benefits of similar value for you. This means you pay less tax on your income. A salary sacrifice arrangement reduces your taxable income, meaning you may pay less tax on your income.”
There’s also an example showing how the amount of cash you take home each year increases by salary sacrificing a car. It spells out that someone earning $65,000 per year can take home an extra $149 per month when they purchase a $35,000 car.
And now, there’s no FBT payable on electric vehicles so you can own an EV sooner than you think.
The top 10 most popular novated lease vehicles in 2022 were:
- Ford Ranger 4X4
- Mazda CX-5
- Toyota RAV4
- Mitsubishi Triton
- Hyundai Tucson
- Tesla Model 3
- Mitsubishi Outlander
- Toyota Landcruiser Prado
- Hyundai i30
- Isuzu Ute D-MAX
