Can I Run My Own Novated Lease?
Yes, it’s possible to run your own novated lease through a self-managed arrangement. This option provides more flexibility and control over the process, allowing you to tailor the lease to your specific needs. Here’s how it works and what you need to consider. If you’re looking for more customization in your lease, check out our blog on Novated Lease Transfer Options.
What Is a Self-Managed Novated Lease?
A self-managed novated lease lets you organise the financing of your vehicle independently from your employer’s preferred salary packaging provider. You have the freedom to shop around and find better finance deals, which could potentially offer more savings than a fully maintained lease provided by your employer. To learn about how novated leases work, visit How Novated Lease Works in ATO.
How Does It Work?
Choose Your Vehicle:
Start by selecting the vehicle you want to lease. This could be a new or used car, or even your current vehicle if you choose a sale-and-leaseback arrangement. You’re not limited to any specific dealership or vehicle type, giving you more options. Explore your vehicle options in our blog on Top Car Brands for Your Novated Lease.
Set Up a Lease Agreement:
Next, you’ll enter into a lease agreement with a finance provider of your choice. The benefit of a self-managed lease is that you can find a lender offering favourable terms and competitive rates that suit your financial situation. Compare finance options in our blog How Novated Lease Monthly Payments Work.
Salary Sacrifice Arrangement:
Work with your employer to establish a salary sacrifice arrangement. Your lease payments will be deducted from your pre-tax income, just like a traditional novated lease. This reduces your taxable income, which can lead to significant tax savings. Learn more about the tax benefits of salary packaging in How Novated Leases Work.
Ongoing Management:
While you are in charge of selecting the finance provider and managing the lease setup, once the arrangement is in place, your employer or their salary packaging provider will typically handle the ongoing administration. This ensures that payments are made correctly and the lease runs smoothly. Find out more about managing novated lease payments in our blog How Novated Lease Works in ATO.
Benefits of Running Your Own Novated Lease
Greater Flexibility:
By choosing your own finance provider, you can potentially secure better deals, lowering your overall lease costs. You also have the flexibility to choose the exact vehicle you want. If you’re looking for flexibility, check out our blog on Novated Lease Transfer Options.
Enhanced Control:
A self-managed novated lease gives you control over the terms of your agreement, including lease duration, repayments, and customer support, making it a more personalised experience. For insights into optimising lease terms, visit Novated Lease vs Car Loan.
Tax Advantages:
Just like with a standard novated lease, you’ll benefit from tax savings by reducing your taxable income through salary sacrifice. Learn more about salary sacrifice benefits in our blog Is Salary Sacrifice Worth It in Australia.
Conclusion
Running your own novated lease is a viable option that offers more control, flexibility, and potential savings. As long as your employer agrees to facilitate the salary sacrifice arrangement, you can manage the lease independently while enjoying the same tax benefits.
Interested in running your own novated lease? Contact us today to find out how you can get started and enjoy the benefits of a tailored, self-managed lease arrangement.