Discover a sale and leaseback
Explore how a sale and leaseback can offer cash now while you stay on the road.
With a novated lease you could be saving thousands of dollars a year. Not just, that, at Inside Edge, we find your perfect car, so you don’t have to.
Discover sale
and leaseback
Explore how a sale and leaseback can offer cash now while you stay on the road.
Release
equity
Leverage your car’s equity.
Gain
cash
Sell your vehicle to receive a cash injection.
Keep driving
your car
Start a lease to continue using your car.
With a novated lease you could be saving thousands of dollars a year. Not just, that, at Inside Edge, we find your perfect car, so you don’t have to.
Discover sale and leaseback
Explore how a sale and leaseback can offer cash now while you stay on the road.
Release
equity
Leverage your car’s equity.
Gain
cash
Sell your vehicle to receive a cash injection.
Keep driving
your car
Start a lease to continue using your car.
What is a sale and leaseback?
If you own a car that’s less than ten years old, you could be benefiting from the value of your car in cash. A sale and leaseback occurs when you sell your car to a lender who then leases it back to you. It’s a way to gain a novated lease with the car you already own. Essentially it means you release the equity in your car and can put that cash towards things you need now.
How it works
1
If your car is being paid off, then they’ll pay for your existing finance agreement.
2
Your car is put on a novated lease with fixed monthly payments.
3
Payments operate through salary sacrificing. Your employer, then, will make payments on your behalf through pre-tax income.
Gain tax benefits
Beyond receiving a potentially much-needed cash injection, a sale and leaseback offers the tax benefits of a novated lease.
Lease payments are made from your pre-tax income paid by your employer. This means you have a lower taxable salary and, therefore, pay less tax.
Who qualifies?
You could be a good fit for a sale and leaseback if:
- You currently own a car (even if you’re paying it off)
- Your car is ten years old or less
- You require cash in your back pocket
- You’re currently an employee with a pay-as-you-go salary
What happens when the lease ends?
When your car lease comes to an end, you can either:
- Pay the balance difference and buy it back
- Trade your current car with a new car and begin a new novated lease
- Sell the car and keep any profits.
A comparison: sale and leaseback vs buying outright vs a car loan
| COMPARING A $40,000 CAR OVER 5 YEARS: | SALE AND LEASEBACK VS | OWNERSHIP VS | CAR LOAN |
| Gross Salary | $100,000 | $100,000 | $100,000 |
| Claimable purchase and running costs (pre-tax) | $5,683 | $0 | $0 |
| Table Income | $94,317 | $100,000 | $100,000 |
| Income tax payable | $22,056 | $24,187 | $24,187 |
| Net income | $72,261 | $75,813 | $75,813 |
| Post tax loan and running costs | $7,489 | $13,568 | $15,300 |
| GST paid | $0 | $1,648 | $1,648 |
| After-tax cash available | $64,772 | $60,597 | $58,865 |
| After-tax cash available (over 5 years) | $323,860 | $302,985 | $294,325 |
| Residual (balloon) | $15,411 | $0 | $0 |
| After-tax cash available after payment of residual | $308,449 | $302,985 | $294,325 |
| Cash lost as a result of not having a novated lease | $5,464 | $14,124 |
Ready to explore a sale and leaseback with Inside Edge?
Chat with our friendly team today
Ready to explore a sale and leaseback with Inside Edge?
Chat with our friendly team today.