frequently asked question
Answer:
A novated lease is a three-way agreement between you, your employer, and a lender. It allows you to pay for the car and its running costs from your pre-tax salary which can reduce your taxable income and potentially save you thousands in comparison to owning the car outright.
Answer:
- You choose your car and OptIn can source the vehicle to ensure you obtain the best price.
- We create a budget for all of your running costs like fuel/charging, servicing, tyres, registration and insurance.
- We then spread these costs evenly across the lease term in-line with your payroll so you know exactly what will be deducted.
- Once we have organised the delivery of your new car, we coordinate with your employer to have the deductions taken from your salary, which in turn reduces your taxable income and can save you thousands in tax.
Answer:
You can have as many leases as you like as long as your salary supports it
Answer:
No, the car can be used for personal use and/or business use.
Answer:
No, these no minimum amount of kilometres you need to drive each year to make it worthwhile. We tailor the lease deductions to match your actual usage so that you can still save on what you are spending on your car.
Answer:
A novated lease has a residual (ballon) amount due at the end of the lease. Typically the longer the lease the smaller the residual. At the end of your lease term you have a couple of options;
- Pay off the residual and own the car outright
- Extend the lease to continue the tax savings with your existing car
- Sell your car and use the proceeds to pay off the residual and upgrade to a newer car.
Option 3 tends to be the most popular as if you sell the car from more than the residual the difference is yours to keep tax free. In addition, you can move into a newer car with potentially lower maintenance costs and warranty covered car.
Answer:
The amount that has been set aside for your running costs are budget and are based on the type of vehicle you are purchasing and the kilometres you drive each year. If you end up driving less and therefore have a surplus of funds in your novated lease account we can reduce your deductions to match what you spend or even return the surplus via payroll. However, if you ended up driving more we would need to increase the deductions to match what you are spending
