- A Ford novated lease allows you to bundle your car and its running costs into one simple payment from your pre-tax salary.
- Salary packaging your Ford significantly reduces your taxable income, leading to substantial tax savings.
- Your monthly lease payments are fixed, helping you budget effectively without the surprise of unexpected car expenses.
- The cost depends on the vehicle model, lease term, and annual kilometers, letting you customize a package for your needs.
- You can save on the upfront cost of a new Ford, as the GST on the purchase price is covered for you.
- Electric models like the Mustang Mach-E can offer even greater savings through a Fringe Benefits Tax (FBT) exemption.
Introduction
Looking for a smarter, more affordable way to drive a new Ford? Novated leasing could be your solution. This option lets you finance a Ford novated lease and running costs with your pre-tax salary, offering significant tax benefits. This guide explains how it works, what it costs, and how it can help you get behind the wheel of your dream Ford.
Understanding a Ford with a Novated Lease in Australia
A Ford with a novated lease in Australia is a three-way agreement between you, your employer, and a leasing company. Payments are deducted from your pre-tax salary through salary sacrifice, lowering your taxable income and reducing your tax. The lease covers the car’s purchase price and running costs.
This arrangement improves your finances. For electric vehicles, you may qualify for a fringe benefits tax exemption, increasing savings. The Australian Taxation Office provides clear guidelines, making it an efficient way to finance a car. All expenses—insurance, registration, fuel—are bundled into one predictable payment, simplifying ownership.
What is a novated lease, and how does it work for Ford vehicles?
A novated lease is a simple way to finance a Ford vehicle. Your employer pays for your car through salary packaging, deducting repayments from your pre-tax income. This lowers your taxable income and boosts your take-home pay.
All costs—purchase price, insurance, registration, fuel, and servicing—are bundled into one regular deduction. Unlike a standard loan, you also save on the car’s GST. The leasing company handles the purchase, whether it’s a new or used Ford, like the Everest SUV.
At the end of the lease, you can buy the car, trade it in, or refinance the final payment. A financial advisor can help tailor this option to your needs and provide an accurate quote based on your chosen model and annual mileage.
Main Factors Impacting the Cost of a Ford with a Novated Lease
Several key factors determine the final cost of your Ford with a novated lease. The most important thing is the purchase price of your chosen model—a pricier car means higher payments. The lease term and the vehicle’s estimated residual value at lease end also matter.
Your estimated annual running costs, plus any additional fees, are included in your regular payments. Choosing between a petrol model and an electric vehicle can affect costs, especially with possible tax exemptions in Australia for certain Ford vehicles. Let’s look at these factors in more detail.
Vehicle model, year, and specifications
The type of car you choose is the main factor affecting your lease cost. Ford vehicle prices range widely, from budget hatchbacks to high-end SUVs like the Everest. More expensive models or premium variants mean higher monthly payments.
Choosing between a new or used car also impacts costs. New cars from dealerships cost more upfront but offer the latest technology and full warranties. Used cars are cheaper to buy but may have higher running costs over time.
Your choice of fuel—petrol, diesel, or electric—also affects expenses. Electric Fords usually cost more upfront but qualify for tax exemptions and save you money on fuel and GST, leading to lower overall payments.
Lease term length, annual kilometers, and residual value
The length of your lease term affects your monthly repayments. Shorter terms, like one or two years, mean higher payments since you’re paying off the car faster. Longer terms, up to five years, lower monthly payments, but may increase the total interest paid.
Your estimated annual distance (kms) also matters. More driving raises running costs for fuel and maintenance, and impacts the car’s residual value, which is its agreed value at lease end.
The residual value, set by the ATO as a percentage of the original vehicle purchase price, influences your payments—a higher residual lowers monthly costs. Consider your financial situation and usage to find the right balance for maximum savings and manageable payments.
Typical Monthly Payments for a Ford with a Novated Lease
Calculating your exact monthly payment for a Ford novated lease depends on your situation, but payments are meant to be predictable. Your repayments combine the vehicle cost and all running expenses into one pre-tax salary deduction, making budgeting easy.
Use a novated lease calculator or request an accurate quote for a full Ford novated lease package. This will factor in your chosen vehicle model, lease term, salary, and other details to show your exact payments and potential tax savings in Australia.
Examples of monthly repayments for popular Ford models
Your monthly payment for a Ford novated lease depends on the vehicle model, lease term, and your personal circumstances. For example, leasing a larger Ford Everest SUV will cost more than leasing a smaller model. The table below gives sample costs—get an accurate quote for your situation.
A typical Ford novated lease package includes the purchase price (with GST savings), registration, third-party insurance (CTP), comprehensive insurance, and allowances for fuel, servicing, tires, and maintenance. Choosing an electric vehicle may also qualify you for a fringe benefits tax exemption, increasing your potential tax savings.
How salary packaging influences your take-home pay
Salary packaging, or salary sacrifice, is the main way a novated lease delivers tax savings. By paying for your car and its running costs with pre-tax income, you lower your taxable income. As a result, the Australian Taxation Office (ATO) calculates your income tax on a reduced amount.
This means you pay less tax each pay cycle, increasing your take-home pay. For example, if you earn $90,000 annually and your lease costs $15,000 per year, your taxable income drops to $75,000. You’re then taxed on the lower amount, so you keep more of your earnings.
This is a key tax benefit of a novated lease, especially for higher earners. It can make buying your next car easier and improve your overall financial situation, saving you thousands every year—a smart choice for many Australians.
Running Costs and Inclusions with a Ford Novated Lease
A Ford novated lease combines all your vehicle running costs into one regular, pre-tax lease payment, eliminating surprise bills for major expenses. A typical package covers comprehensive insurance, annual registration and CTP, fuel, scheduled servicing, maintenance, and new tires—all paid with pre-tax dollars for extra tax savings, including GST. This makes car ownership simple and hassle-free, with all costs managed in a single predictable payment.
Conclusion
In summary, understanding the costs of a Ford with a novated lease can improve your financial planning. Factors like model, specs, lease terms, and running costs require careful research. A novated lease offers potential tax savings and flexible expense management. While the overall novated lease process is similar across most car brands, Ford may offer specific deals, incentives, or preferred rates through certain providers, and running costs for Ford vehicles may differ from those of other brands, depending on model and maintenance requirements. Ready to secure your Ford? Contact us for a free, personalized consultation—your smarter vehicle financing starts now!
Frequently Asked Questions
Are there online calculators to estimate Ford novated lease payments and savings?
Yes, you can find a novated lease calculator online to get a quick estimate of your potential repayments and tax savings for a Ford novated lease. For a precise figure tailored to your situation in Australia, it’s always best to request a detailed, no-obligation quote from a leasing specialist.
Does a novated lease on a Ford include all running costs?
Absolutely. A key benefit of a Ford novated lease is that it can include all your vehicle’s running costs. This typically covers comprehensive insurance, registration, fuel, scheduled servicing, and other maintenance costs. You also save the GST on these expenses, adding to your overall savings.
How does the model of Ford chosen impact the overall cost?
The vehicle model is a primary factor in the cost. More expensive Ford vehicles will have a higher purchase price, leading to higher monthly repayments. The model also affects ongoing running costs like insurance and fuel consumption, all of which are factored into your total lease package.
