Myth 1: "I don't drive enough kilometres to benefit."

FALSE! You could benefit with a novated lease – no matter how little you drive.

Consider this example: Frank leases a car worth $34,000 on a four-year lease term. As he works close to home he only drives his car around 15,000 kilometres each year. Based on his $80,000 annual salary Frank could receive a fortnightly saving of $115 – or $2,994 each year. That’s an estimated benefit of up to $14,970 for the term of the lease.*

Imagine what you could do with an extra $14,970!

These potential tax savings are only possible if you enter into a novated leasing arrangement.

Myth 2: "I can only lease a new car."

FALSE! You can enjoy the same potential tax savings and budget convenience on a used car or even your existing car.

You can choose any second-hand make or model you prefer (subject to your employer’s policy), provided it meets the age requirements. It is subject to eligibility criteria and you can find that out by speaking with the Maxxia team.

If you’d prefer to hold on to your current car but keen to explore the benefits of novated leasing? Good news: you could still enjoy the convenience of a novated lease. Basically, if you own your car, or still have it on finance, you could choose to sell your car to one of our financiers and then lease it back. This type of lease gives you all the benefits of a regular novated lease while allowing you to free up any equity you have in the car to spend on other things, such as renovations or a holiday.

Myth 3: "I can only benefit if I have a high salary."

FALSE! You don’t have to earn a high salary, or work in management to enjoy the potential benefits of a novated lease. Regardless of how much you earn, if you pay tax, you could benefit from a novated lease.

Note: When you apply for your lease, the financier will assess your application based on your financial circumstances before you make any commitment. One of our dedicated leasing consultants can help explain how this could apply to your circumstances.

Consider this example: John’s annual salary is $50,000. He leases a car valued at $34,000 on a five-year term. He pays for his car and its running costs with a combination of his pre-tax and post-tax salary through a novated lease, rather than a personal loan.

By salary packaging his car through a novated lease, John could save $105 each fortnight or $2,726 each year. When you add this up, John could save up to $13,630 in five years!*

That’s a big potential tax saving that he could put towards his household bills – or even a well-deserved holiday.

Myth 4: "I am better off if I add the car to my home loan."

FALSE! A novated lease offers you what an ordinary loan doesn't – the complete package.

Let's recap the potential benefits of a novated lease.

• Save with no GST payable on the price of your leased car (that’s a potential 10% saving upfront) if purchased through a dealership.
• No deposit needed if your car is arranged through Maxxia’s dealership network.
• You could reduce your taxable income by paying for your lease and running costs with a combination of pre and post- tax dollars.
• Competitive pricing with our nationwide buying power.
• Fuel cards – so you don’t need to pay with cash at the service station.
• A flexible budget for your car expenses is prepared for you upfront (and regularly monitored) by our dedicated consultants.
• Update your budget at any time.
• Expert support of our maintenance team who will ensure you don’t pay any more than is needed at service time.

Alternatively, if you were to finance your car through a personal loan or your home loan:

• You have to source your own vehicle as an individual buyer.
• You may need to pay a deposit to secure finance.
• You have to source your own finance approvals.
• You can only pay using post-tax dollars and there are no extra discounts or potential tax benefits – like saving GST on the vehicle purchase price and running costs.
• You still have to budget (outside your loan) for your car’s running costs, including fuel, maintenance and roadside assistance.
• You may have to repay more interest over a longer period if you add your car to your home loan.

Myth 5: "Novated lease cars are company cars."

FALSE! If you leave your employer, you can take the car with you and remain responsible for its payments. If your next employer doesn’t offer novated leasing, you can take over the finance using post-tax repayments and continue using the vehicle.

Myth 6: "The car has to be used for business purposes."

FALSE! The car can actually be 100% for personal use, and you can still enjoy the potential tax benefits.

How to get started.

Our experienced team can guide you through the application process, answer your questions and provide you with a no-obligation quote.

Complete the form below or phone us on 1300 123 123.