A novated lease is a three-way agreement between an employee, employer, and a finance company. It allows the employee to lease a car for personal or business use while also enjoying tax savings. The employer deducts the lease payments from the employee’s pre-tax salary, reducing their taxable income and, in turn, their tax liability. The finance company provides the lease financing and manages the lease agreement.
A novated lease is an arrangement between an employee, their employer, and a finance company where the employee leases the car and deducts the lease payments from the employee’s pre-tax salary. In this article, we will dive deep into the novated EV Tesla novated lease, including what it is, how it works, the benefits, and how to get started.
How does a Novated EV Tesla Novated Lease work?
A novated lease for a Tesla EV works just like a regular lease but with additional benefits. Firstly, Tesla EVs are exempt from luxury car tax, which can save you thousands of dollars. Secondly, electric cars have lower running costs than traditional petrol or diesel cars, which means you can save money on fuel and maintenance.
To start with a novated EV Tesla novated lease, you need to choose the Tesla model you want to lease, agree on the lease terms with the finance company, and then enter into a novation agreement with your employer. The novation agreement specifies that the employer will deduct the lease payments from your pre-tax salary.
Benefits of Novated EV Tesla Novated Lease
Tax Savings
One of the outstanding benefits of a novated lease is tax savings. Because the lease payments are deducted from your pre-tax salary, you reduce your taxable income and, in turn, your tax liability. It can result in significant savings over the life of your lease.
Lower Running Costs
Electric cars have lower running costs than traditional petrol or diesel cars. Electric cars don’t require oil changes or engine tune-ups and have lower maintenance costs. Additionally, electric cars have lower fuel costs because electricity is cheaper than petrol or diesel.
Tesla EVs are Exempt from Luxury Car Tax
Tesla EVs are exempt from luxury car tax, which can save you thousands of dollars. A luxury car tax is imposed on cars that cost more than a certain amount. Because Tesla EVs are priced well above the luxury car tax threshold, they are exempt from this tax.
Environmentally Friendly
Electric cars are environmentally friendly because they do not emit harmful pollutants like petrol or diesel. Choosing a Tesla EV contributes to a cleaner environment and reduces your carbon footprint.
How to get started with a Novated EV Tesla Novated Lease
The first step in getting a novated EV Tesla novated lease is to choose the Tesla model you want to lease. Tesla offers several models, including the Model S, Model X, Model 3, and Model Y. Consider your budget, driving needs, and lifestyle when choosing a model.
Agree on Lease Terms with the Finance Company
Once you have chosen your Tesla model, you must agree on the lease terms with the finance company. The lease terms include the lease period, the monthly lease payments, and any fees or charges associated with the lease.
Enter into Novation Agreement with Employer
After agreeing on the lease terms, you must enter a novation agreement with your employer. The novation agreement specifies that the employer will deduct the lease payments from your pre-tax salary. It also specifies the terms of the novated lease, including the lease period and any obligations or responsibilities you have as the lessee.
A novated EV Tesla novated lease can be a smart financial choice for several reasons. Firstly, the tax savings can be significant over the life of the lease, as the lease payments are deducted from your pre-tax salary. Secondly, electric cars have lower running costs than traditional petrol or diesel cars, which means you can save money on fuel and maintenance. Finally, Tesla EVs are exempt from luxury car tax, which can save you thousands of dollars. By choosing a novated EV Tesla novated lease, you can enjoy all these benefits and drive an environmentally friendly car while maximizing your financial savings.