BMW iX3: Your Complete Guide to Novated Leasing

The BMW iX3 is not only a stylish electric SUV but also a smart choice for those considering a novated lease in Australia. A novated lease allows you to use your pre-tax salary to cover the lease payments, which can lead to significant tax savings. This financial arrangement is beneficial for both individuals and employers, making it an attractive option for many.

With the growing popularity of electric vehicles, the iX3 stands out as a practical and eco-friendly choice. By opting for a novated lease, you can enjoy the advantages of driving a luxury vehicle while managing your costs effectively. Whether you are new to leasing or looking to upgrade your current deal, understanding how novated leases work with the BMW iX3 can enhance your driving experience and financial strategy.

Understanding Novated Leases in Australia

Novated leases are an effective way for you to finance a vehicle while enjoying tax benefits and savings. This arrangement involves you, your employer, and a financier, making it a popular choice among Australian citizens.

Benefits of Novated Leasing for Australian Citizens

A novated lease offers several advantages. You can pay for your lease from your pre-tax salary, allowing for potential income tax savings. This practice, known as salary packaging, reduces your taxable income, which may lower your overall tax bill.

Additionally, novated leases can provide significant GST savings. If the vehicle price is below a certain threshold, you might save on GST, assisting with your upfront costs.

Another benefit is that if you change jobs, you can usually transfer your lease to your new employer. This flexibility means you can keep your vehicle without starting over with new financing.

Novated Lease Calculator: Estimating Your Savings

Using a novated lease calculator can help you understand your potential savings. These tools allow you to input your salary, the car cost, and other variables to see how much you can save on tax.

Key factors include:

• Monthly lease payments: This is the amount taken from your salary.

• Fringe Benefits Tax (FBT): Know how this tax may affect your savings if your employer is liable for it.

• Lending criteria: Different lenders may have varying requirements, so check before making decisions.

By adjusting variables in the calculator, you can estimate your net savings and see how a novated lease could work for your financial situation.

The BMW iX3's Features and Value Proposition

The BMW iX3 offers a blend of advanced features, excellent electric range, and impressive safety measures. Its design combines luxury and functionality, making it a compelling choice for those considering a novated lease.

Electric Range and Efficiency

The BMW iX3 provides a solid electric range, making it suitable for daily commutes and longer trips. It offers approximately 460 kilometres on a full charge, which is competitive within its class.

Charging the iX3 is straightforward. You can use standard wall outlets or fast chargers. When using a fast charger, you can achieve 80% battery capacity in around 34 minutes. This efficiency aligns with your needs, whether commuting or travelling longer distances.

The iX3 also employs advanced technology, providing energy-efficient driving. It optimises energy usage based on your driving style. This feature not only extends your range but helps you save on running costs, enhancing its value proposition.

Safety and Autonomous Emergency Braking

Safety is paramount in the BMW iX3, equipped with various advanced safety features. One key element is the Autonomous Emergency Braking (AEB) system. This system detects potential collisions and can automatically apply the brakes to prevent or reduce impact.

Additionally, the iX3 includes features like lane departure warning and adaptive cruise control. These elements enhance your driving experience while keeping you safe on the road. The combination of these features not only increases your confidence while driving but also reflects BMW's commitment to safety.

Incorporating these safety measures into the iX3 makes it a reliable option for those who prioritise safety and peace of mind.

Financial Advantages of BMW iX3 Novated Lease

The BMW iX3 novated lease offers several financial advantages for you as an employee. This arrangement can provide tax benefits and flexibility, making it an appealing choice. Here’s an overview of some important financial features.

Full Circle Guaranteed Future Value

With BMW's Full Circle Guaranteed Future Value option, you can enjoy peace of mind regarding your car's depreciation. This feature allows you to know the minimum value of your vehicle at the end of the lease.

• You can choose to sell your car, return it, or buy it outright at the guaranteed value.

• This helps you plan your finances better, knowing what to expect.

This advantage reduces the financial uncertainty of owning a car, making your budget more predictable.

Luxury Car Tax Threshold and Exemption

When leasing luxury vehicles like the BMW iX3, you need to consider the Luxury Car Tax (LCT). In Australia, there’s a specific threshold for cars to be considered luxury. As of now, the threshold is set at $79,659.

• If the car's cost exceeds this amount, LCT may apply.

• Fortunately, novated leasing can help you save on costs in certain situations, especially when it comes to GST savings.

Depending on your vehicle's price, using a novated lease might help you avoid some of the immediate financial impacts of LCT.

Salary Sacrifice and Other Tax Benefits

A key financial benefit of a BMW iX3 novated lease is the ability to salary sacrifice. You reduce your taxable salary by arranging your lease payments from your pre-tax income.

• This can lead to significant tax savings over time.

• You might also save on Fringe Benefits Tax (FBT), especially if your employer has an FBT exemption.

In addition to salary sacrifice, you could potentially save on running costs like registration and insurance, all of which can create a more affordable ownership model. This makes the BMW iX3 a smart choice for many employees looking to optimise their finances while enjoying a premium vehicle.

Administrative Aspects of BMW iX3 Leasing

When leasing a BMW iX3, you will encounter various administrative tasks related to ordering, delivery, and costs. Understanding these elements is crucial for a smooth leasing experience.

Ordering and Delivery from Novated Finance Australia 

To start your leasing journey, you need to place your order with Novated Finance Australia. This process involves selecting your desired model and any optional features. It’s advisable to confirm the specific conditions of your lease.

Once your order is placed, we will provide you with a timeline for delivery. Generally, delivery can take several weeks, depending on availability and customisations. 

Upon delivery, ensure that you thoroughly inspect the vehicle. This includes checking the exterior and interior for any damages. 

Fees, Charges, and On-Road Costs

Leasing a BMW iX3 involves various fees and charges that you should be aware of. These may include:

• Initial Lease Fee: Paid at the start of your lease.

• Monthly Payments: Your employer typically manages these from your pre-tax salary.

On-road costs may also apply, including registration, insurance, and maintenance but these are included in the fully managed novated lease. These costs ensure you can legally drive and keep your vehicle in good condition.

Make sure to clarify who covers these costs with your employer and under what conditions. Understanding all these aspects helps avoid surprises down the line.

Wrapping Up

The BMW iX3 is a smart choice for anyone considering a novated lease. This vehicle offers a blend of luxury, practicality, and advanced technology.

With a novated lease, you can take advantage of several benefits, such as lower taxable income by paying lease payments from your pre-tax salary and flexibility in terms of changing employers without losing your lease benefits.

If you're ready to explore this option, contact Novated Finance Australia now. We will provide tailored advice and help you with leasing your BMW iX3. Taking this step can make your dream car more accessible while enjoying financial benefits!

Frequently Asked Question

• Can I include maintenance and insurance costs in my BMW iX3 novated lease?

  Yes, many novated leases allow you to include maintenance, insurance, and other running costs in your lease package, making it easier to manage expenses.

• What happens at the end of my BMW iX3 novated lease?

  At the end of the lease, you can choose to pay out the residual value to own the car, refinance the lease, or trade in the vehicle for a new lease.

• Are there any additional costs for charging the BMW iX3 under a novated lease?

  Charging costs are typically considered running expenses and can be included in your lease package if your employer allows it, helping you manage all costs under one agreement.

• How does a novated lease impact Fringe Benefits Tax (FBT) for the BMW iX3?

  FBT may apply depending on your salary and employer's policies, but some employers offer FBT exemptions or adjustments, potentially reducing the overall cost.