There is something about the EOFYS that makes us all sit up and pay attention. Maybe it is the rush of big-ticket deals or the temptation of upgrades we have been eyeing all year. But here is a little secret, if you are considering a new car, pairing those EOFYS discounts with a novated lease could be the smartest financial move you make this year.
EOFYS isn’t just about potentially scoring a flash new ride, it’s your ticket to big savings. With a novated lease, you could lower your taxable income and roll your car’s costs into one simple payment, all while cashing in on dealer discounts that only come around once a year. Let us show you how to take full advantage before the financial year wraps up.
When it comes to buying a car, timing is everything, and EOFYS is prime time. Here’s why it is the smartest moment to get behind the wheel:
Car dealers want to hit their financial year targets and clear out current stock to make room for new models. That means you will often find discounted prices, added extras, or reduced drive-away deals that you simply won’t get any other time of year.
You will also see a lot of ex-demo and fleet cars released into the market around the EOFYS and they are often packed with features, low in kilometres, and come at a fraction of the new car price.
Businesses may be able to claim deductions for vehicles used for business activities, potentially reducing taxable income for the financial year. It is advisable to consult with a tax professional to understand the specific benefits applicable to your situation.
EOFY deals are everywhere, but a novated lease gives you more than just a discount; it can reshape your finances. Here’s how novated leasing can get you a better deal:
Lease payments are made from your pre-tax salary, lowering your taxable income. This can result in significant tax savings over the lease term, especially for higher-income earners.
Novated leases can include running costs like fuel, insurance, registration, and maintenance. Paying these from your pre-tax salary simplifies budgeting and can lead to further tax efficiencies.
Finalising a novated lease during EOFYS not only lets you take advantage of sales but also aligns with the financial year, potentially maximising your tax benefits for the year ahead. This timing can be strategic for tax planning and budgeting purposes.
At the end of the lease, you typically have options, upgrade to a new vehicle, extend the lease, or purchase the car at its residual value. This flexibility allows you to adapt based on your needs and financial situation.
One of the big perks of a novated lease is the GST savings. Since GST is not applied to the financed amount or running expenses, you could see a noticeable cut in your vehicle costs, particularly handy when purchasing a new car.
EOFYS is when the smartest drivers make their move. If you are eyeing a novated lease, now’s the time to get in before the financial year wraps up. Take note of the following tips to grab the best EOFY novated lease offer.
Not all novated lease providers are created equal. Some will throw in bonuses like free servicing, others might negotiate a better purchase price with the dealer.
The Australian government offers Fringe Benefits Tax (FBT) exemptions for electric vehicles (EVs) under the luxury car tax threshold of $89,332. This means you can lease an EV without incurring FBT, leading to further savings. For example, leasing a Tesla Model Y under these provisions can result in significant cost reductions compared to traditional financing methods.
While the monthly lease payment is a crucial factor, don't overlook the total cost of ownership. This includes fuel or charging costs, maintenance, insurance, and registration. Novated Choice understands the importance of transparency and comprehensive planning. Our running cost calculator allows you to input all your current car-related expenses to determine your actual costs.
Don’t let those EOFYS pass you by without exploring a smarter way to drive. A novated lease with Novated Choice means you could enjoy serious savings on tax, car costs, and even dealership deals, without the usual hassle. Even if you had your eye on a fuel-efficient EV or a brand-new SUV, we will help you lock in a great price before the financial year ends.
The clock’s ticking, but the road’s wide open. Chat with our team today and we will guide you through every step, simple, fast, and fully tailored to what you need. Let’s turn EOFYS into your next big win.