Pitch Engine

The benefits of salary sacrificing your car

  • Written by Stratton Finance

Salary sacrificing your car has a certain ring to it that speaks of business people that drive company cars. However, this is a convenient and tax-saving form of finance that is open to practically anyone in gainful employment. But what exactly is salary sacrificing and do the benefits make it worthwhile? Let’s take a quick look.

Salary sacrificing your car also goes by another name, one which you may be quite familiar with – the novated lease. What happens in this kind of financing arrangement is that you, the employee, use part of your salary to pay for your new car. All you need is an employer who is willing to offer salary packaging and these days most companies are happy enough to do so. Once your boss in on board, you take a look at a novated car lease calculator, figure out how much you can afford to spend, and then start shopping for a new car.

Sacrificing part of your salary to pay for a new car sounds pretty reasonable, right? After all, it’s what you do every month when you pay your rent, buy your groceries, and pay your light bill; you sacrifice part of your income.

The difference here though is that the part of your salary that you ‘sacrifice’ for your car is taken out of your pay packet before you pay any tax.

Wait, what?

Okay, you’re interested now so let’s just get straight to the benefits, shall we?

You pay less tax

It’s a big one so let’s get to it right away. With the novated lease (salary sacrificing your car) any monthly or weekly payments come directly from your wages before you pay any tax. That means that this portion of your salary in untaxed. Yes, we did say untaxed – the finest word in the English language.

It’s convenient

If you ever find yourself fretting on certain days of the month about whether your account has enough money to pay the car loan, then this kind of deal is perfect for you. With a novated lease the lease payments, running costs, and fringe benefits tax (FBT) come directly out of your salary saving you a lot of stress.

You have buying power

As the novated lease is NOT a lease for a company car, you are free to choose the car of your choice. Once you have calculated your novated lease payments, you can head out shopping for any car within your budget and not the standard model in the company fleet.

It’s yours

Yes, as we mentioned, this is not a company lease but a personal finance product. This means that when you opt to salary sacrifice your new car, you don’t have to remain in the job until you finish your lease term.

It’s flexible

Most financiers who offer salary sacrificing products such as the novated lease are willing to allow you to choose terms of anywhere from 12 to 60 months.

The car is cheaper

With salary packaging, the financier applies an input tax credit which removes the GST from the amount needed to finance the car. This means that in the long run, you pay less for your car as you borrow a GST-free amount.


We’re sure you’ll agree, the benefits of salary sacrificing are hard to ignore, and while it may not be the perfect option for everyone, it’s certainly worth asking your employer about it. Take a look at this novated car lease calculator, and you’ll get a good idea of just how much money you could save using this method to finance your new car.

A new car, less tax, lower repayments? What more could you ask for.

As Australia's largest car finance broker, Stratton Finance know a thing or two about loans and finance. With over two decades of experience in the field they are one of the most trusted authorities in the industry. 



More Articles ...

  1. Cooking in Your Brand-New Caravan: Safety Tips
  2. Forex strategies and their uses
  3. 5 Principles to Guide You When Building Your Business Brand
  4. Things that you should about forex trading platform
  5. Could the Equifax Breach Have Been Prevented?
  6. Latest digital video streaming technology
  7. Motorhome Terminologies for the First Time Buyer
  8. Take all the help you can get in trading
  9. Australia Is a Terrific Value Destination
  10. A Solution for the Trucking Industry
  11. Difference between day trading and swing strategy
  12. How Much Does It Cost to Buy a Good Model Essay?
  13. Save Cash Roadtripping In Auckland
  14. Use the market volatility in your favor
  15. 4 Advantages of Buying a Used Motorhome
  16. Queenstown's Quirkiest Road Trip Destinations
  17. RVs, Caravans & Campervans: The Differences
  18. Free websites builders market and highlights that you need to know
  19. Exploring New Zealand on a Budget
  20. Online Gaming Trends For 2017
  21. Crowdfunding and its Economic Benefits
  22. San Francisco Dazzles and Delights: Holiday Lights, Sights and Decorations
  23. How to improve your salary by getting more qualifications
  24. Binary options: Future-proof recipe for a fat wallet?
  25. Renting a Vehicle for Your Holiday Can Make It More Fun and Unique
  26. Connecting Clients and Providers in the Beauty and Wellness Category
  27. Termite control Perth to obliterate termites naturally from your business zone
  28. Pokies and More with Casino Apps Galore
  29. Ska Brewing’s Hop Ivy is Now Available in Cans
  30. Aris Hursey announces mixtape “I’m Sorry I Should’ve Been Put This Out”
  31. Penn Mutual Collegiate Rugby Championship Rhino Rugby Partner with ATAVUS Football for Free Clinics for Coaches Student Athletes on the ATAVUS Tackling System Powered by Rhino
  32. Grundéns Expands Marketing Team with Ozzy Delgado
  33. Mitchell Prime Properties Founder and CEO John-Mark M. Mitchell featured on Bravo as Guest on Hollywood Live
  34. Asia and North Africa Critical Care Equipment Market worth 2.61 Billion USD by 2021
  35. Particle Size Analysis Market by (Laser Diffraction, DLS, Imaging) 2016 to 2020
  36. Mattsson Group President Sussi Mattsson featured on A E as Guest on Hollywood Live
  37. Downtown Smooth Esthetics in Knoxville is An Exclusive Center of Excellence for the OxyGeneO™ 3-in-1 Super Facial Treatment from DermaMed Solutions, the Most Advanced Facial Technology in the Market
  38. Steve Renner Featured on NBC as Guest on The Brian Tracy Show
  39. Michele Nami-Von Hoven Signs Publishing Deal With CelebrityPress To Co-Author New Book
  40. Balega Presents Retailer Design Contest
  41. Wearable Fitness Technology Market is expected to reach 12.44 Billion USD by 2022
  42. Service Laboratory Market is expected to reach 5.45 Billion USD by 2020
  43. Alarm Monitoring Market is expected to reach 54.46 Billion USD by 2020
  44. Castle’s Diane Wilmot Named one of 100 Outstanding Women of Broward County - The Eighth Annual Event will be held on May 12, 2016 at the Signature Grand in Davie, FL.
  45. Security Cameras Market (IR Illuminator) is expected to reach 2.68 Billion USD by 2020
  46. United States 2021 Interventional Cardiology Market Pipeline Products
  47. The Smart Water Metering Market worth $5.51 Billion USD by 2021
  48. Wind River Country Summer Vacation Deals - Mix and match our adventures for your dream vacation
  49. Medical Lifting Sling Market Worth USD 706.0 Million by 2020
  50. American Sentinel University Celebrates Nursing Students’ Accomplishments with #NotANumber Video for Nurses Week 2016
  51. The 6,500+ mile journey to commencement
  52. American Sentinel University Nurses Week Daily 10 Profiles Top 10 Responses to Use When a Nurse Co-worker Gets Nasty
  53. Eden Specialty Ciders ready to grow with working capital from the Flexible Capital Fund
  54. Jax Fish House debuts patio with Canned Beer and Crab Boil on May 17
  55. Current and past CUW profs to host fourth annual creation conference
  56. MEDIA ADVISORY: Men’s Rugby 7s Squads from Army and Navy to Meet in Exhibition Demonstration at Battleship New Jersey, Tuesday, May 17 in Advance of 2016 Penn Mutual Collegiate Rugby Championship
  57. POC Bolsters Triathlon Roster, Signs Lagerstrom, Tisseyre
  58. Partnership Grants $532,000 for More Equitable Bike Share
  60. Re/Max Titanium CEO Rudy Lira Kusuma Featured on NBC as Guest on The Brian Tracy Show
  61. Sean Tepper Featured on NBC as Guest on The Brian Tracy Show
  62. Germany 2021 Cardiovascular Surgery Devices Market Analysis
  63. Spain 2021 Cardiac Assist Devices Market Forecast
  64. Global Paclitaxe Market Growth, Demand and Forecasts Report 2016-2021
  65. Overview Of Global Empty Capsules Market
  66. Polygiene Announces Three New Partners and Products for Spring
  67. Orange County’s Southland Ballet Academy students sweep Youth America Grand Prix finals in New York City
  68. Thermacell Joins Forces with ScoutLook on New Mosquito Alert App
  69. Riverton Museum to host "Dance in Unlikely Places"
  70. Denver School of Nursing Students Give Peruvian Midwives, Villagers Healthcare Support
  71. Giggle Yoga Project Creator David Strauss featured on NBC as Guest on Success Today.
  72. Incomparable Strength
  73. Women Who Code Launches Network in Taipei
  74. Doctor Jose Gomez, Inc. President Jose Gomez, M.D. Featured as one of the National Association of Experts, Writers, and Speakers® Trendsetters in Forbes!
  75. United By Blue Klean Kanteen® Team Up For Clean Water
  76. Celebrate Summer and American Icons with Macy’s Culinary Council Chef Nancy Silverton!
  77. Mobile Marketing Market Global Forecast to 2021 With 28.1% CAGR Led by Asia-Pacific Region
  78. Deckorators Launches New Website to Help Pros Go Beyond Ordinary
  79. New Jersey Celebrates Victor Davson and Aljira's Milestone Achievement in the Arts
  80. Wheelchair Medical Equipment Market 2006 to Current Industry Share, Analysis, Growth and Forecast
  81. Dental Implants And Prosthetics Market to Grow at 5.35% CAGR By 2021
  82. First Bethesda College students to graduate Saturday
  83. Champlain’s Special Collections Program To Host Water Meets Land: Commerce, Recreation, and Preservation of Burlington’s Waterfront on May 25
  84. Fuse Alliance Launches The Spark Awards For Organization's Network Members
  85. Crowdfunding Kick-Off for "Hearts of Glass," a JenTen Productions Slow Food in the Tetons Documentary Film Collaboration
  86. Product Information Management Market Outlook to 2021 With 25.3% CAGR Led by Asia-Pacific Region
  87. PeopleForBikes’ National Protected Bike Lane Week Kicks-Off Today!
  88. NA Leads Production Printer Market Growth at 5.5% CAGR to 2022 Propelled by Publishing Application
  89. Video Streaming Market Trends to 2021 With 18.3% CAGR: Led by APAC Region
  90. Ska Caps Off Huge Week of International Wins With Brewers' Holy Grail, a Medal at the World Beer Cup
  91. UHY Names Brad Baer Managing Director
  92. Wave Therapy Opens Arizona’s First Acoustic Pressure Therapy Location at Pinnacle of Scottsdale Shopping Center
  93. HPV Testing and Pap Test Market Or cervical cancer screening market worth 4,523.1 Million USD by 2020
  94. European Injectable Drug Delivery Market worth $207.3 Billion by 2020
  95. Particle Size Analysis Market worth 256.1 Million USD by 2021
  96. Tourism Growth an Important Piece of Wyoming Economy
  97. 'What man was meant to do': Joseph Gray is hungry to three-peat at Superfeet Trail 10K-ish at 2016 GoPro Mountain Games
  98. Nina Paolicelli to perform at Jersey Battered Women's Service (JBWS) Grand Tastings XXI Event on May 16th
  99. Miele presenta la nuova enoteca compatta da incasso
  100. Linee senza maniglie per un design originale e raffinato. Nasce ArtLine.