With price of petrol hitting the $1.35 per litre, I starting looking at various options for reducing out running cost on a car. We currently drive a 4WD, and its fuel economy is not very friendly to our wallets. Its weight, constant all wheel drive, and lack of any aerodynamic in its design are the enemies of any good fuel economy. One of the options considered is novated leasing a car, in particular a smaller, more fuel efficient car.
The guys at privatefleet has a good explanation on what a novated lease is. The two main benefits that I saw was
- Financing of the vehicle is paid with pre-tax dollars.
- The vehicle may be leased for 100% private use.
Before we leap into a novated lease agreement, the following questions need to be answered.
- Do we really need another car?
- What kind of car do we need?
- How much do we need to borrow?
In the coming months, these questions will hopefully be answered.