What Cars are Available on a Novated Lease?
You may have heard about novated leasing and even considered that it might be right for you. The potential tax effectiveness of this popular salary packaging benefit could be beneficial, but that’s not all that matters when it comes to running a car, is it?
Choosing a car is a big decision and also a very personal one. Many people like their cars to reflect their own personality or personal brand – and having a wide range of vehicles from which to choose is important when making this decision, whether you’re seeking an upgrade to the family SUV, a more economical sporty number to get around the city in, or making the switch to electric.
Novated Lease Car Options
But what exactly are your options when picking out a car for your novated lease?
Good news — there are very few restrictions. In fact, not only can you get into most makes and models on a novated lease, but we can even help find the vehicle for you. Thanks to Maxxia’s huge buying power we can source vehicles from a nationwide network of dealerships – so you could have access to a wider range of vehicles than what may have been locally available to you buying privately.
But the good news doesn’t stop there – our buying power also means that we could help you complement the potential tax savings of novated lease with a great price on the vehicle of your choosing!
But before you rush off and get a novated lease – let’s quickly run through the restrictions.
You can get a novated lease on:
Under government legislation, a car is defined as “a motor vehicle (except a motorcycle or similar vehicle) designed to carry a load of less than one tonne and fewer than nine passengers.” So, as you can see, while that does exclude trucks and some vans and utes – you’re free to choose from a wide range.
One other restriction that applies is around the age of the vehicle – generally the car cannot be older than 12 years at the end of the lease term. There is, however, an exception to this rule for the classic car lovers out there – prestige and collectable vehicles that retain their value over time. In these situations, a chat with your Maxxia consultant will help you determine if the vehicle in question fits under this exclusion.
The Electric Car (EV) Discount
On the topic of cars that are eligible for novated lease, electric vehicles have potentially become a whole lot more affordable as a result of the government’s Electric Car (EV) Discount. This exempts payment of Fringe Benefits Tax (FBT) on eligible battery electric, plug-in hybrid and hydrogen fuel cell vehicles both held and used for the first time on or after 1 July 2022 – up to the Luxury Car Tax threshold for the applicable year ($89,332 for the 2023/24 year).
So, if you were thinking of joining the EV Revolution, there’s never been a better time, or better way, than through a novated lease with Maxxia! Ready to learn more about how a Maxxia novated lease may be making your money work for you? Give Maxxia a call on 1300 123 123 or get in touch with us online.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.