Novated leases offer an exceptional financial option that outpaces traditional loans and other car-buying methods. They involve a legally binding contract between an Australian employee, their employer, and the finance company.
This type of Tesla novated lease involves a salary sacrifice arrangement, where the lease repayment and running costs are deducted from your pre-tax earnings. These deductions reduce taxable income and the amount of income tax you owe.
Benefits
If you’ve always wanted a Tesla but can’t justify purchasing one outright, novated leasing might be your perfect solution. There are numerous advantages to using a lease, such as lower monthly payments and more manageable upfront costs.
The only drawback is that you’ll pay more for insurance if you own the car outright. On average, Tesla owners pay around $2,115 annually – higher than most conventional cars, which could add up over time.
Before you decide to lease a vehicle, it’s essential to determine your budget and needs. It will help you select the ideal vehicle and prevent overspending on your lease agreement.
Owning your own electric vehicle (EV) can be wise, as they are generally seen as more sustainable options than gas-powered cars. It is especially relevant in areas with high gas prices and environmental damage.
No Deposit
Tesla novated leases are an ideal solution for those seeking to drive a new electric vehicle without the hassle of traditional financing. A legally binding contract between an employee, their employer and the financier allows them to purchase or lease a Tesla at a low cost and pay it off over time.
Electric vehicle (EV) drivers who want to save on taxes and make their commute more eco-friendly often opt for a novated lease. However, there are some things you should be aware of before signing up for such a deal.
One major disadvantage of a Tesla novated lease is that you’re locked into the same car for three years, regardless of your life situation or whether or not it meets your needs. It makes it difficult to switch your mind and go with another model.
No Credit Check
Tesla novated leases are an innovative financing option that allows employees to acquire a new car while working for their employer. It is an ideal option for those who need a vehicle but lacks the credit score required to qualify for traditional loans.
A novated lease works by placing an employee’s money in the hands of a third party who provides financing, enabling them to drive a car while paying it back. Furthermore, this financing could help build credit if they don’t already possess good credit.
If you decide to purchase the car outright after your lease period ends, a financing process like a credit check must occur. It involves providing a lender with all relevant information – date of birth, registration address, social security number, employment and income info.
Once your application is submitted, a decision usually follows within 48 hours. However, some lenders may take longer to review your request.
Once you’re ready to purchase, the lender will provide a quote, including your down payment and monthly payments. This amount depends on the amount of the down payment, loan term, and annual mileage.
The Tesla model offers the lowest lease package of up to 10,000 miles annually. Additional mileage fees may apply if you exceed this limit or damage your car; these costs would typically be added to your monthly payment unless you select a lower-mileage lease option.
Tax Savings
Tax savings opportunities abound with Tesla novated leases. This salary sacrifice arrangement takes your vehicle’s repayments and running costs from pre-tax pay, reducing taxable income and reducing taxes significantly.
Nominated leases can be tailored to fit your financial circumstances, whether you need a vehicle for leisure or business use. Repayments will be taxed at a low rate and GST-free – meaning you could save thousands on your electric vehicle purchase price.