<h2>As a teacher, you deserve to hold on to every cent of your pay. One way of holding on to more of your hard-earned money is through salary packaging a Novated Lease.</h2>
<p>A Novated Lease allows you to pay for a new or used car from your pre-tax salary. This means that you retain more of your pay. Your employer pays for your car and its running expenses before you receive your pay, so that you get the car you want, while reducing the amount of tax you’re paying.</p>
<p>Novated Leases can be confusing, so the novated experts at Fleetcare have provided answers to their top 8 frequently asked Novated Lease questions&#8230;</p>
<ol>
<li><strong> How does a Novated Lease save me money? </strong></li>
</ol>
<ul>
<li>Pay less tax by paying for your new car and related expenses from your pre-tax income</li>
<li>You’ll receive fleet discount pricing on the vehicle cost, accessories and ongoing expenses</li>
<li>Some Novated Lease providers offer great discounts on fuel as part of their bulk purchasing power</li>
<li>You pay no GST on the purchase price, or ongoing expenses like fuel and servicing – that’s a 10% saving right there!</li>
<li>Smooth your expenses and never have to worry about finding the money for new tyres again &#8211; it’s all included in your fortnightly or monthly payment.</li>
</ul>
<ol start="2">
<li><strong>How do I know if I’m eligible for a Novated Lease?</strong></li>
</ol>
<p>If you’re a salaried employee who has completed your probation period at work and your employer is happy to enter into the agreement, you’re eligible!</p>
<ol start="3">
<li><strong> Can I only take out a Novated Lease agreement through my employer?</strong></li>
</ol>
<p>Yes. It’s a salary sacrifice arrangement, so your employer must be involved. It doesn’t cost your employer anything and is very simple to set up. Your Novated Lease provider will be able to help them through the entire process.</p>
<ol start="4">
<li><strong> Do I have to buy a new vehicle to enter into a Novated Lease agreement?</strong></li>
</ol>
<p>No. As long as your vehicle is less than eight years old by the end of the lease, you can salary sacrifice a second hand vehicle. We’ll even help you source one that matches your specification and then work to get you the best possible discount on the purchase price. Most Novated Lease providers will also let you trade in a vehicle as part of your Novated Lease, however the trade in funds cannot be used to reduce the lease principle.</p>
<ol start="5">
<li><strong> What’s included in a Novated Lease? </strong></li>
</ol>
<ul>
<li>The vehicle purchase price plus any accessories, stamp duty and other on-road costs</li>
<li>Comprehensive insurance</li>
<li>Registration &; CTP</li>
<li>Fuel</li>
<li>Roadside assistance</li>
<li>Servicing</li>
<li>Tyres and maintenance</li>
</ul>
<p>Some Novated Lease providers will also include accident management and Guaranteed Asset Protection Insurance as standard, so be sure to shop around and compare providers.</p>
<ol start="6">
<li><strong> Can I set my vehicle residual lower than recommended?</strong></li>
</ol>
<p>The vehicle residual is determined by the term of the lease and the total vehicle purchase price at a statutory rate prescribed by ATO guidelines and cannot be amended.</p>
<ol start="7">
<li><strong> What happens at the end of my Novated Lease?</strong></li>
</ol>
<p>When you come to the end of your lease you have three options:</p>
<ol>
<li>Purchase the vehicle outright by paying off the residual value.</li>
<li>Extend the lease and refinance the residual value.</li>
<li>Start a new lease by trading in your vehicle or selling it privately. If you’re leaving your employer, you can always transfer the lease to your new employer or set up a straight finance loan.</li>
</ol>
<p>8. <strong>How much can I save on a Novated Lease compared to a car loan?</strong></p>
<p>The largest savings you receive from a Novated Lease are the tax savings. A portion of Novated Lease running costs are taken from your gross salary before tax and before the Medicare levy, which makes a big difference to your take home pay. You also benefit from GST savings and fleet discounts on the initial purchase price, accessories and ongoing expenses.</p>
<p>The best way to find out how much you can save is to speak to a Novated Lease consultant who will give you a customised break down of your expenses and savings to help you find out whether salary sacrificing a car will leave you with more money in your pocket.</p>
<p>If Fleetcare haven’t answered any of your pressing salary sacrificing questions here, give them a call on 1300 777 600 or visit www.fleetcare.com.au and their experienced novated team will answer any further questions you may have.</p>
<h5>This article is an advertorial. </h5>

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