Oly busts the five biggest novated lease myths

Novated leasing, eh? It’s an awesome concept – who wouldn’t like the idea of being able to lease a car by partially using pre-tax dollars? But it also comes with its share of misconceptions and misunderstandings. Good thing Oly is here to talk facts, not myths. Read on to discover the truth behind five of the biggest myths that come with novated leases.

Myth 1: You need to drive heaps to make novated leasing worth it

Not true! Even if you don’t rack up the kilometres, a novated lease can still be a smart move.

Why? Because novated leasing isn’t just about mileage it’s about how you pay for your car. Using pre- and post-tax dollars (or 100% pre-tax dollars for eligible EVs) can reduce your taxable income, meaning your lease could be more affordable than buying outright or taking a traditional car loan.

Plus, your car budget is flexible: you can tailor payments to your lifestyle and make adjustments anytime. So low mileage doesn’t mean low benefit, it just means you get to enjoy the perks without needing to drive a lot.

Myth 2: Novated leases only cover the cost of the car

Believing this myth could mean you’re missing out on saving stacks on tax. Why? Because while novated leasing does indeed include the cost of financing a car, it also includes pretty much all the associated expenses that comes with running a car. This means big-ticket items like registration, insurance and maintenance are all covered, as well as petrol and even charging. When these are paid for with pre-tax dollars you could save more tax than just paying for the finance pre tax.

Aside from all the possible tax savings that you could be enjoying, there’s also the convenience of only having to worry about one regular payment. No surprise bill-shock here.

Myth 3: You can only get a new car on a novated lease

Novated leases are a lot more flexible than you think. So, while yes, you can absolutely, get a new car on novated lease, you can also get a used car if that’s more your style. Oly can also source one through a nationwide dealer network or, if there’s a particular used car (no more than 7 years old at the end of the lease) that you’ve got your eye on, you can get behind the wheel of it through a novated lease.

Even better. You can also novated lease your current car. Sounds a bit bizarre, but this way, you can enjoy all the benefits of novated leasing like possible tax savings and budget convenience. Oly will work with you to figure out an agreed upon price, pay off any finance you might have on the car, then lease the car back to you.

Oh, and if you have any equity in the car, you could receive cash back from Oly for that equity.

Myth 4: It’s only for those with the big bucks

This one’s a common misconception. But the truth is, novated leasing and its associated possible tax savings are for everyone, if your employer offers it. Say you find the car of your dreams, Oly can help you figure out your budget that is uniquely suited to you. Plus, you have the flexibility of choosing a lease term of one to five years, as well as a car that works for your budget.

The great thing about a novated lease is that it packs pretty much all the costs associated with a car into one easy payment. Insurance? Sorted. Rego? All part of your regular payment. Maintenance? Oly’s got it covered.

And because of its unique kicker – the ability to use pre-tax dollars for payments – the savings possibilities are there for anybody to take advantage of, not just high earners

Myth 5: You need to own a business.

This myth is false – you don’t need to be a business owner to access the perks of novated lease. However, you do need to be employed by a company that offers novated leasing, but you might be surprised at the number of places that offer it. And if you’re working somewhere that doesn’t offer it yet, it might be time to drop the hint to your boss that Oly can help. Just make sure to tell them there’s a lot less paperwork and admin than they might expect. Or tell them to visit www.oly.com.au/employers.

So, now you know the truth behind novated leases, it’s might just be time to speak to one of Oly’s experts and get one for yourself.

Ready to drive?

You don’t need to work for a big company to get big benefits, but to be eligible for an Oly novated lease you do need to be:

- Employed full-time, part-time or self-employed

- Earning a set salary (AKA not unemployed, retired, or a ride share driver)

- Looking for a car for personal use

Fill out this form to kick things off, then check your inbox for a link to create your Oly login to apply online (hint: check your spam/junk folder).

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