With the prices of electricity, petrol, groceries, rent and mortgage payments continuing to rise, Australians are starting to feel budget pressures in their everyday lives. The recent rate rise has only added to cost-of-living anxieties, with many now having to stretch their budgets for the first time in years.
The Reserve Bank of Australia (RBA) recently lifted the cash rate to 1.35% and is now expected to reach between 2.5% to 3% by the end of 2023. If banks pass on the hike in full, the average borrower with a $500,000 mortgage and 25 years left to pay on their loan could see their monthly repayments increase by $652 a month, according to RateCity.
Whether you’re paying $16 for a head of lettuce, struggling with recent interest rate rises, or paying an average of $2.00 per litre for fuel, many people are now looking for ways to cut costs or find cheaper solutions.
One way to cut down costs is through a novated lease – an easy and cost-effective way to finance a new or used car. It’s a type of salary packaging arrangement that you can make with your employer, where you agree to set aside some of your pre-tax salary to pay for a car of your choice and all the running costs that come with it.
Here’s how it works: by ‘sacrificing’ part of your salary to your employer in exchange for benefits of equal value, you can reduce the amount of tax you need to pay at the end of the financial year, which leaves more money in your pocket.
From day one you reap the benefits. Fleet Network not only gets exclusive discounts on vehicles, but you save on the purchase price by not having to pay for GST. If you’re purchasing a $30,000 vehicle, that’s $3,000 you save immediately! Because your novated lease is on a fixed-rate loan, you have the extra security that your costs won’t rise during your lease term.
Manage your money better in times of uncertainty.
With a novated lease you also save GST on all the running costs of your car, including up to 40% off of fuel. If you drive 20,000 kms per year (11.10 litres of fuel per 100kms) and spend $2.00 per litre on fuel each time you fill up, that equals approximately $3,604 per year. With a novated lease, you can save $1,458 off your yearly fuel costs, effectively bringing down the price from $2.00 to $1.19 per litre.
Need new tyres? Is registration due? Maybe it’s time for a service? All these running costs, and more, are included in your repayments over the term of your novated lease. Not only can this save you thousands, but it takes the stress out of paying unexpected, hefty bills.
From a reduced tax bill to exclusive discounts and deals, find out how much more you could be saving with a Fleet Network novated lease. Contact Fleet Network on 1300 738 601, email contact@fleetnetwork.com.au, or complete our Get A Quote form online for a response within 4-business hours.
