Novated leases are ever-increasing in popularity. Instead of forking out a heap of cash upfront to buy a car, or paying larger monthly repayments on a car loan, people are turning to leases to save themselves the hassle of this and, instead, drive around their dream car without technically owning it. And the best part? The repayments, services, insurance and rego can all be paid from your pre-tax wages!

So, when it comes to servicing, surely there’s a catch, right? Surely it’s one of those situations where you have to service the car at this super expensive place that makes it not even worthwhile to enter a novated lease. Well, let’s find out.

Service it at whichever mechanic you like

Nope. You can actually service your own car at whichever mechanic you like. All you have to do is let your novated lease provider know where you’re taking your car for a service, and let your mechanic know that your car is on a novated lease, and it’s incredibly easy to tee up from there.

Benefits of servicing your car on a novated lease

The single best thing about servicing your car on a novated lease is that the cost of the service can be paid with your pre-tax wages. This means, when it comes to tax time, you can deduct the cost of the service (along with the cost of insurance, rego and repayments) from your payable tax.

This is especially handy if, on the off-chance, your car experiences an issue that is slightly more pricey to repair. The cost of this repair comes out of your pre-tax wages, rather than directly out of your pocket.

Other perks of a novated lease

There are plenty of other perks about getting a car through a novated lease, other than reducing your payable tax at the end of the financial year.

  • Lower monthly repayments than a car loan
    Novated lease repayments are cheaper than car loan repayments – and why wouldn’t they be? With one option, you’re leasing a car and with the other option, you’re buying it. If you don’t want to be stuck paying the hefty monthly repayments of a car loan, then a novated lease could be the best option for you.
  • Easy to update
    It’s super easy to upgrade your car when you’ve got a novated lease. Let’s say, at the end of your lease, you want to upgrade to the latest model of your car – you simply sign a new lease and you’re good to go.

Keen on a novated lease? Talk to the experts at Fingo, and they’ll help you find one for your dream car! Fingo are Australia’s team of car finance experts, offering smart car advice and helping you find the best novated lease possible. They have a database of over 2,000 dealerships across the country, using this to compare the market on whichever make and model you’re after. Get in touch with the specialists at Fingo and step into your new ride today.

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