Novated subscriptions have truly changed the way we think about car ownership. Before they came along, the idea of changing cars every month with just two weeks' notice seemed impossible. And paying for that flexibility through your pre-tax income with a single, all-inclusive deduction? It wasn’t even on the radar. Novated subscriptions have completely flipped the script, bringing a level of convenience we’ve never seen before.
Curious about how this works for you? This article will walk you through why the Novated Subscription experience is one you’ll definitely want to explore.
What is a Novated Subscription?
You might be familiar with a Novated Lease—it's a salary sacrifice arrangement where you make car payments, including subscription and running costs, through your employer. Your employer deducts the payments directly from your payroll and sends them to a financing institution of your choice. This setup simplifies your payments and helps reduce your taxable income.
But a Novated Subscription takes things a step further with some key differences:
No Lock-In Contracts: Unlike traditional leases that last anywhere from 3 to 7 years, a Carbar Novated Subscription gives you the freedom to drive a car for as long as you need or want. Need a change? You can cancel or swap cars with just two weeks' notice.
Flexible Weekly Payments: Instead of a monthly payment, a Carbar Novated Subscription offers the convenience of one simple weekly payment, giving you more control and flexibility over your budget.
All-Inclusive, No Hidden Costs: Your weekly payment covers everything—your car, maintenance, registration, insurance, and running costs. No hidden fees, no surprises, and no exit costs.
Employer Benefits: For businesses, a Novated Subscription simplifies accounting. Employers aren't required to report these subscriptions in their financial reports, which lightens their workload without affecting their bottom line.
5 Simple Steps to Get Started:
Already picturing your adventure—whether it's a thrilling getaway or a rugged wilderness journey? Getting started with a Novated Subscription is easy. Here's how to make it happen:
- Choose Your Car: This is the fun part! Head over to carbar’s online platform and find the car that speaks to you—whether it’s a sleek Tesla, a diesel camper van, or a classic Ford, we’ve got something for everyone.
- Consult the Experts: Once you’ve got your eye on a car, our Novated Subscription experts are ready to assist. Reach out for a free, no-obligation quote. We're here to guide you through the process and answer any questions you have along the way.
- Finalise the Agreement: When you’re ready to move forward, just have a quick chat with your employer to set up the payment structure through your pre- and post-tax salary. If you'd prefer, connect us directly with your HR team, and we’ll take care of the details for you.
- Enjoy the Ride: Once everything’s set, simply pick up your car and hit the road! Your employer will manage the payments, so all you need to do is enjoy the drive.
- Stop or Swap Anytime: If you fall in love with a new ride, no worries! Just give us two weeks’ notice, and you can swap or cancel your Novated Subscription whenever it suits you.
It’s that easy—flexible, hassle-free, and ready whenever you are!
What if you never want to give up your car?
Sometimes, you just know you’ve found the one. We’ve seen it with people, and we’ve seen it with cars. If your current car has won your heart, you might just want to make it yours for good. No worries—our flexibility still applies, even if you want to stick with the same car long-term.
Want to buy? If you’re ready to make your car a permanent part of your life, just ask! We’ll work with you to determine the purchase price and help you figure out if buying makes sense for you.
Need more time to decide? Not quite ready to make the leap to ownership? No problem. You can convert your Novated Subscription to a Novated Lease and keep enjoying the car a little longer while you decide.
Either way, we’re here to help. We can compare the costs of buying, leasing, or continuing with your subscription—without impacting your credit rating. This way, you can make an informed decision on what works best for you.
