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How a novated lease could put cash back into your pocket

Drive.com

That’s a novated lease, and it has become a popular choice for many Australians looking to drive their dream car. There are currently around 350,000 novated leases in Australia^. Between fuel, registration, insurance, servicing, tyres and other bills, keeping your car on the road can be a lot to manage separately.

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9 Smart Tips for Financing Your Next Car Purchase In Australia

Car Examer

Fortunately for new car owners, most car dealers provide flexible payment terms to help you spread out your payments over time and make the repayment cost more reasonable. This allows buyers to get either a better deal or better payment terms for their purchase. For used cars, there’s also the used car loan.

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Tax Benefits of Leasing a car vs Buying a Car: Business Owners

Your Car Buying Advocate

But first let’s discuss the tax benefits of leasing a car vs buying a car as a business owner. Depreciation Tax Benefits: While purchased cars may be subject to depreciation limitations, they still offer tax benefits through depreciation deductions over the vehicle’s useful life, contributing to long-term tax savings.

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What is novated leasing, and how does it work?

CarExpert

This means payments are bundled with running costs such as insurance, servicing, fuelling or charging, tyres, and registration. It also means the costs are part of your salary sacrificed payments, boosting the tax benefit. A single payment at predictable intervals, with no surprise rego or insurance bills.