Owning an electric vehicle (EV) is already a great step toward a sustainable future, but did you know it can also save you thousands of dollars? With a Sell and Novated Lease Back, EV owners have a unique opportunity to unlock the value of their cars while enjoying significant tax savings. Let’s explore how this works and why it might be the smartest financial move for EV owners.
What Is a Sell and Novated Lease Back?
A Sell and Novated Lease Back is a financial arrangement where you sell your vehicle to a leasing company, ie WhipSmart through it’s finance partner, and lease it back through your employer using a novated lease. This allows you to:
- Receive a lump sum payment upfront for the value of your vehicle.
- Lease the car back using pre-tax income, significantly reducing your taxable salary.
This arrangement is especially attractive for EV owners due to the tax benefits tied to sustainable vehicles.
The Benefits for EV Owners
1. Immediate Cash Flow
Selling your car upfront provides you with cash that can be used for investments, paying off debts, or funding other life goals—all without giving up your vehicle.
2. Significant Tax Savings
One of the biggest advantages of a novated lease is that it’s paid using pre-tax dollars, lowering your taxable income. Depending on your income and the car’s value, you could save $10,000 or more over the life of the lease.
3. Continued Use of Your EV
You don’t lose access to your car. You’ll still drive the same vehicle you love, but now in a way that’s more financially efficient.
4. Additional Savings on EV Benefits
Australia has specific tax incentives for EVs, including exemptions from Fringe Benefits Tax (FBT) for eligible vehicles. This makes a Sell and Novated Lease Back even more appealing for EV owners.
Why Consider This Now?
With EV adoption on the rise, many owners are sitting on vehicles that have retained significant value. If you’re looking to free up cash or simply make a smarter financial choice, there’s never been a better time to explore this option.
Is a Sell and Novated Lease Back Right for You?
This arrangement is ideal if:
- You’re looking for a quick influx of cash.
- You want to reduce your taxable income.
- You value the convenience of driving the same car while saving money.
It’s worth noting that a novated lease involves financial commitments, so it’s important to understand the terms and consult a professional to ensure it aligns with your long-term goals.
How to Get Started
At WhipSmart, we specialise in helping EV owners navigate financial solutions like Sell and Novated Lease Back. Our team can guide you through the process, ensuring you get the best value for your car and maximise your savings.
💡 Ready to unlock cash and start saving? Contact us today to learn more!
Or simply give us a call on (07) 2100 0123.
