Top Novated Lease Deals Revealed!

Finding the perfect car deal can be a game-changer, especially when it comes to novated leases. With the right approach, you can secure a vehicle that fits your needs and budget while enjoying the financial benefits of a novated lease.

In this post, we'll guide you through the process of unearthing the best-novated lease car deals in the market, helping you make informed decisions and get the most value from your investment.

Understanding Novated Leases

A novated lease is a three-way agreement between you, your employer, and a lease provider that allows you to finance a car using your pre-tax salary. This arrangement offers significant financial benefits, such as reducing your taxable income and bundling vehicle expenses into one simple payment.

Here's how it works: Your employer deducts the lease payments directly from your salary before tax, lowering your taxable income and, thus, your tax liability. You can include the car payments and running costs like fuel, maintenance, and insurance in the lease, making it a convenient, all-inclusive solution.

One of the biggest advantages of novated leases is the flexibility they offer. You can choose the car that best suits your needs and preferences, whether a brand-new or reliable used vehicle. Additionally, at the end of the lease term, you have several options: you can buy the car, extend the lease, or trade it in for a new model.

Factors to Consider When Looking for the Best Deals

Evaluating several key factors is essential to making a well-informed decision when searching for the best new lease car deals.

1. Budget:

Determine a realistic budget, including lease payments and running costs like fuel, maintenance, insurance, and registration. A clear understanding of your financial limits will help you avoid overcommitting and ensure the lease remains affordable throughout its term.

2. Vehicle Needs:

When selecting a vehicle, consider your personal and professional requirements. Consider the car's size, fuel efficiency, safety features, and suitability for your daily commute or long-distance travel. For instance, a compact car might be ideal for city driving, while an SUV might be better for family use or off-road adventures.

3. Lease Terms:

Pay close attention to the terms of the lease agreement. Key aspects include the lease duration, mileage limits, and end-of-lease options. A typical novated lease term ranges from two to five years. Ensure the mileage allowance fits your driving habits to avoid excess mileage charges at the end of the lease.

4. Residual Value:

Understand the vehicle's residual value, estimated at the end of the lease term. A higher residual value can result in lower monthly payments. However, if you purchase the car at the end of the lease, this might mean a higher buyout cost.

5. Additional Inclusions:

Check if the lease includes additional services like maintenance, roadside assistance, and fuel cards. Bundling these costs into the lease can simplify budgeting and offer peace of mind, knowing these expenses are covered.

6. Employer Support:

Discuss the novated lease options with your employer. Some companies partner with specific lease providers, offering better rates and additional benefits. Understanding your employer's policies and support can help you maximise the benefits of a novated lease.

Best Novated Lease Car Deals in the Market

BYD ATTO 3 Novated Lease

The BYD ATTO 3 is an electric SUV known for its affordability and efficiency. It offers significant tax savings due to its FBT exemption, making it an economical choice for EV enthusiasts. The vehicle has advanced safety features, a spacious interior, and modern tech like Android Auto and Apple CarPlay. The all-inclusive lease package covers registration, insurance, maintenance, and charging costs​.

BMW IX1 Novated Lease

The BMW IX1 is a luxury electric SUV that combines high performance and eco-friendly driving. It features a powerful electric motor, advanced safety systems, and a premium interior with the latest technology. The novated lease for the IX1 offers substantial tax benefits and includes insurance, maintenance, and charging expenses, making it a convenient and cost-effective choice for those seeking luxury and sustainability​.

Tesla Model 3 Novated Lease

The Tesla Model 3 is celebrated for its impressive range, quick acceleration, and cutting-edge technology, including Tesla's Autopilot system. Its minimalist interior features a large touchscreen interface. A novated lease for the Model 3 provides significant tax savings and includes comprehensive coverage for insurance, maintenance, and other running costs, making it an attractive option for tech-savvy drivers​​.

Hyundai Tucson Novated Lease

The Hyundai Tucson is a versatile SUV offering a comfortable ride, ample cargo space, and advanced safety features. With various powertrains, including efficient hybrid options, Tucson's novated lease provides tax advantages and bundles running costs such as insurance and maintenance into a single payment, making it a practical choice for families and professionals​​.

Toyota Camry Novated Lease

The Toyota Camry is renowned for its reliability and fuel efficiency. It features a spacious interior, smooth ride, and strong safety ratings. Available with petrol and hybrid powertrains, the Camry's novated lease includes tax benefits and covers expenses like insurance, maintenance, and fuel, offering a worry-free ownership experience​​.

Mitsubishi Outlander Novated Lease

The Mitsubishi Outlander is a spacious SUV with advanced safety features and the option of a plug-in hybrid powertrain. It is suitable for both city driving and off-road adventures. A novated lease for Outlander provides financial benefits, including tax savings and an all-inclusive package that covers insurance, maintenance, fuel, and registration, making it a reliable and economical choice.

Tips for Negotiating the Best Deal

Negotiating the best-novated lease car deal requires preparation and a strategic approach. Here are some practical tips to help you secure the most favourable terms:

1. Research and Compare:

Research multiple novated lease providers and compare their offers. Look at the lease terms, including services and overall cost. Use online tools and platforms to get quotes from various providers, which will give you a solid understanding of the market rates and help you identify the best deals​​.

2. Leverage Employer Benefits:

Many employers have partnerships with specific lease providers, which can offer better rates and additional benefits. Speak with your HR department to see if your company has any preferred suppliers or special arrangements that you can take advantage of. This could include discounts on the lease price or added perks like free maintenance or insurance​.

3. Timing Matters:

Timing your lease can significantly impact the deal you get. End-of-year sales, model clearance events, and new model releases are great opportunities to find better deals. Dealers are often more willing to negotiate during these periods to meet sales targets or make room for new inventory​​.

4. Understand the Residual Value:

The residual value is the car's estimated worth at the end of the lease term. A higher residual value can result in lower monthly payments, but it also means a higher purchase price if you decide to buy the car at the end of the lease. Ensure you understand how the residual value affects your lease and consider negotiating it if possible.

5. Negotiate Additional Inclusions:

Don't hesitate to ask for additional inclusions in your lease package. This can include maintenance, roadside assistance, fuel cards, or insurance. Bundling these costs into your lease can provide convenience and potential savings, as they often benefit from the same pre-tax treatment as the lease payments.

6. Be Prepared to Walk Away:

One of the most powerful negotiating tactics is being prepared to walk away if the terms are unfavourable. This shows the lease provider that you are serious about getting the best deal and can often lead to them offering better terms to keep your business.

Ready to drive your dream car and save money? Discover the unbeatable benefits of a novated lease with Novated Finance Australia.

Frequently Asked Question

• What happens if I change jobs during the lease term?

  If you change jobs during your novated lease term, you can transfer the lease to your new employer or convert it to a personal finance arrangement, ensuring flexibility and continuity.

• Can I customise the lease term and mileage limit?

  Many novated lease providers allow you to customise the lease term and mileage limit based on your driving habits and preferences, ensuring the lease fits your needs perfectly.

• Are electric vehicle charging costs included in the lease package?

  For electric vehicles like the BYD ATTO 3 and Tesla Model 3, novated lease packages often include charging costs, which are bundled with other running costs for convenience and savings.

• Can I upgrade my vehicle before the lease term ends?

  Some lease providers offer options to upgrade your vehicle before the lease term ends, subject to specific terms and conditions. This allows you to drive the latest models without waiting for the lease to expire.