carbar Novated Leasing
- Lease type
- Fully-maintained
- Return car - end of lease
- Optional
Summary
carbar Novated Leasing offers a wide range of vehicles to choose from, benefitting both employer and employee
Novated leasing offers a convenient way for employees to access vehicles and save money on income tax at the same time.
Pros
-
Offers fully maintained novated leasing
-
You can choose between novated leasing and novated subscriptions
-
Reduces the tax you pay
Cons
-
Not all employers offer novated leasing
-
The employee’s income will be lower
How does a carbar novated lease work?
Through carbar novated leasing the employee would choose from its wide range of vehicles based on their budget and their employer would facilitate the car leasing repayments on behalf of the employee.
The lease repayments can be made over a lease term of 1 to 5 years and come out of the employee's pre-tax salary. The benefit of this is that it lowers the amount of income tax paid.
Although the employee's salary will be lower while the repayments are being made, it's very often a more cost effective way of buying or leasing a car through post-tax income.
If you choose a fully maintained novated lease the insurance and service costs will also be included in the monthly repayments.
Main points to consider:
- Lease terms. Lease terms can be between 1 to 5 years.
- Transferable agreement. If the employee leaves, the lease can be transferred to a new employer. Alternatively, the lease may be terminated or the employee will be personally responsible for the repayments.
- Vehicle choice. carbar offers a wide range of vehicle options. Each vehicle make and type will have different costs, so you should choose one within your budget.
- Easy repayment. The repayments come out of the employee's pre-tax salary, which should diminish the risk of missed payments.
- Income tax. Because the payments come out of the employee's pre-tax salary, there is less income tax to pay. But it does mean the employee needs to budget with a lower income.
- Maintenance options. The lease can either be non-maintained or fully maintained. If fully maintained, the repayments will include the costs for service and maintenance as well as insurance.
How much does a carbar novated lease cost?
The cost of a carbar novated lease depends on the make and model of the vehicle you choose, as well as the type of novated lease you choose, e.g. whether it's non-maintained or fully maintained.
Your monthly repayments will also be higher if you choose a shorter lease term.
Aside from the monthly repayments you may also face charges for late repayments.
How do I apply for a carbar novated lease?
If you're an employee wanting a novated lease, the first thing to do is speak to your employer to see if they offer salary sacrificing options.
If you've already confirmed it's an option or if you're an employer looking to offer it, you can head through to the carbar site to get an idea of costs through the novated lease calculator. You can then input your information into the online form to register your interest or sign up to create an account.
Your reviews
Rebecca Finder
Senior writer
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