Need a new car? Our car finance expert explains a novated lease.

Salary sacrificing of a car, using a novated lease, is a great way to upgrade or change your car without the need for a large upfront payment.

A novated lease is a three-way agreement between you, your employer and a finance company. Under this agreement, you enter into a finance lease with a finance company (like us, Auto Car Finance); then a novation agreement is used to transfer some of the obligations of the lease to your employer (if you’re a Bookssorted contractor, Bookssorted acts as your employer).

Once a novation agreement is in place, your employer – not you – is considered to be the leasee of your car. This means that your vehicle can be treated as a company car which gives you access to significant income tax and GST savings.

With a novated lease, an agreed amount will be deducted from your salary regularly and used to pay your lease and vehicle running costs.

(At Auto Car Finance, we monitor your car expenses and provide regular reporting throughout the life of your lease to ensure you’re tracking in line with your budget.)

A novated lease is a tax-effective way to finance your car and have your employer pay for it using a combination of your pre and post-tax salary. That’s right, you get to pay some of the lease with what you would have paid to the tax man. Effectively, you reduce your taxable income and maximise your pay.

Some extra benefits you get working with Bookssorted and Auto Car Finance are:

Save on GST

Because Auto Car Finance purchases your car on your behalf, GST is excluded from the sale price when you buy with a novated lease. You’ll also save on GST for all running costs including fuel, servicing and tyres.

Access better pricing

Our car buying service provides you with competitive pricing on the new or used car of your choice – any make, any model – Australia-wide.

Enjoy peace of mind

Auto Car Finance’s repair assist program takes the hassle out of scheduled servicing, maintenance and repairs. Our repair specialists offer fleet discounts on parts and labour, and we check every job to ensure you’re not overcharged.

Save on fuel

Choose from a Shell or Caltex fuel card, allowing you to pay for fuel at more than 90% of suppliers across Australia. Or, you can save your receipts and get us to reimburse you.

Stay on budget

We’ll help you to budget for the cost of your car’s finance and running expenses throughout the life of your lease and monitor your costs to ensure you’re tracking in line with this budget.

Contact us

Give me a call on 1300 547 226 / 0414 799 577 or email me at cam@autocarfinance.com.au to find out more and chat about your unique wants and needs when it comes to a new car. I work closely with the Bookssorted team to set up your novated lease and together we can have you on the road in your new car in no time!

By Cameron Robertson, Auto Car Finance.