Benefits of a Novated Car Lease

So what other benefits are there? To start with, the lease itself can be cheaper than taking out a regular consumer loan. This is because it is a commercial arrangement and banks tend to offer better rates and lower fees on these types of loans than consumer loans. For example, many lenders charge consumers $5-10 a month on consumer loans. This means that fee alone can cost you between $300-600 over a standard 5 year term. Other benefits that you get can be:1)    Fleet pricing on new cars2)    Discounted fuel3)    Discounted servicing and parts4)    Save the Goods and services tax on purchases and lease paymentsFleet pricing on new carsSome manufacturers will give the dealerships extra discounts on new cars that they can then pass onto the purchaser. These discounts may be tied to the size of your employer or just to the fact you are salary sacrificing to pay for a car. Either way, you can only get these discounts by proving you are doing a Novated Lease. This usually means supplying a copy of the signed Deed of Novation when you pick up the car. You cannot get these discounts as a retail customer.Discounts on fuelIf you are doing a Fully Maintained Novated Car Lease, you will be provided with a fuel card to make your fuel purchases. These cards can attract a small discount on the pump price that you pay for fuel. This is usually applied when your fuel card bill is processed by your management company. Discounts on maintenance and repairesYour fuel card may also be authorized to allow you to pay for servicing and repairs to your car. Some suppliers will offer you a discount when using these cards.Goods and Services TaxWhen you salary sacrifice for a Novated car lease, your employer can claim the GST in the purchases and lease payments against their business. They then pass this on to you by way of lower deductions. So as well as being a convenient way to pay for your car and its running costs, a Novated Car Lease can offer special savings that make it a great way to pay for your next car.