Don't sacrifice cash for your salary sacrifice
"This is great, I thought. I get to deduct the lease and running costs of my personal car from my pre-tax salary". Broadly speaking Natalie is spot on, these benefits are very tax effective and worthwhile taking advantage if your employer offers these services.
Natalie was also looking for a mortgage and during our discussions I suggested she let me run the car numbers to check she was getting as good a deal as she thought.
Although Natalie was buying a new Mazda CX9 our own, very special, proprietary system - a.k.a. the amazing Sharon was able to find a better deal on the car saving several thousand dollars. Still a new Mazda CX9 in the right colour and with all the options, just a better price from a dealer who was keen to meet their bonus quotas. Sharons has been finding clients cars and saving them thousands of dollars for over twenty years. She has great relationships with just about every car dealer on the eastern seaboard.
Then we looked at the finance rate. Again, (as we expected) we were able to get a much better finance rate which again saved Natalie several thousand dollars. In this particular case we even used the same finance company, Macquarie Leasing, but just a better rate. Unlike car finance brokers and car dealers, mortgage brokers like Blue Zinc are covered by the National Consumer Credit Act, which means we have to act in the clients best interests. Strange that car dealers and car finance brokers don't do the same?
To provide a little background - most large businesses outsource their salary sacrifice programs to third party companies. These companies usually earn commissions or from the car dealer as well as the finance company. Many employers have a clause in their agreement with the salary sacrifice company that their employees are able to source their own car and/or finance if they choose.
Any way, Nat now has her new CX9 and the costs are coming out of her salary (before being taxed at a lower rate). Just that the car was about $3,000 cheaper and her lease rate is very competitive. Please feel free to contact us to discuss your car options regardless of your circumstances - salary sacrifice, business use, or just a flashy sports car.