Massive GST discount on the initial purchase price
Include car running costs in your lease for extra savings
Pay using pre-tax salary (saving you $1000s)
Pay $0 fringe benefits tax on eligible PHEV models
Shopping around for the right novated lease can save you thousands of dollars in interest and fees.
In our Mitsubishi Outlander novated lease guide:
Mitsubishi's Outlander has always been an extremely popular car in Australia, successfully staggering the line between family car and rugged off-roader. Refreshed styling on the latest models will only increase the appeal.
And now with the introduction of the Outlander PHEV (plus the Eclipse Cross PHEV), Mitsubishi is offering drivers an option to upgrade to an electric vehicle, while retaining the reassurance of having a petrol 'fallback'. It's likely to appeal to those not quite ready to commit fully to an EV.
Importantly, the Mitsubishi Outlander PHEV is eligible for the massive tax incentive available on an electric car novated lease. You see, until 2025 the fringe benefits tax exemption extends to plug-in hybrid electric vehicles (PHEVs), including the Outlander, as well as all-electric vehicles.
This incentive makes a novated lease on a Mitsubishi Outlander PHEV an extremely economical prospect relative to other Mitsubishi finance options.
|Vehicle||Estimated drive-away price||Up-front GST saving||Weekly novated lease cost||Total tax saving during lease|
Mitsubishi Outlander (PHEV ES 5-seat)
Mitsubishi Outlander (PHEV Aspire 5-seat)
With a novated lease, you'll be able to pay for your Mitisubishi Outlander plus virtually all of your running expenses using your pre-tax salary.
This means paying less in income tax.
This arrangement is sometimes referred to as salary sacrificing a car. Essentially you forego some of your take-home pay and use it to pay for your car instead, while saving money in tax overall.
You also get a GST discount on the car's purchase price and packaged running costs. The process is managed by a novated lease company who will help you find a Mitsubishi Outlander to buy and arrange for the salary deductions to be made by your employer.
Your Mitsubishi Outlander novated lease can include most running costs. This boosts the tax savings, as you pay for them from pre-tax salary and enjoy a GST discount on packaged costs:
Please note that certain related costs can’t be included. For instance, the cost of installing a home battery or fast charger if you opt for the Mitsubishi Outlander PHEV.
Based on current estimated pricing from Mitsubishi, the following variants will be eligible for the novated lease fringe benefits tax exemption on low- and zero-emission vehicles in FY 2023/24.
This is because the pricing comes in under Australia's luxury car tax threshold.
If you're eligible, the FBT exemption makes a novated lease on a Mitsubishi Outlander considerably cheaper than a car loan, or even buying the car with cash.
When the novated lease term on your Mitsubishi Outlander ends (usually after 5 years), you will have three main options:
The novated lease company you work with will help facilitate the next steps, whichever option you choose.
The residual payment on your Mitsubishi Outlander novated lease will be a percentage of the the purchase price of the vehicle. The exact percentage will depend on the duration of your lease (between 1-5 years).
The longer the lease the lower the residual amount.
As an example, the residual payment on a Mitsubishi Outlander PHEV ES (estimated purchase price: $61,440) with a 5-year novated lease would be around $17,283 (inclusive of GST) or 28.13% of the purchase price. This is based on the minimum residual value rates set by the ATO.
This is just an example estimate. Be sure to get a personalised novated lease quote based on your situation and the exact vehicle you have your eye on.
Compared to a car loan, your credit score generally does not have as much of an impact on your ability to get a novated lease. This is because the arrangement is made through your employer who will make the payments on your Mitsubishi Outlander to the lease company on your behalf.
But the finance provider will likely still do a credit score check when assessing your application for a novated lease. Your credit score could impact the interest rate on the finance.
Novated lease guides and resources
Find out more about the possible savings, benefits and things to watch out for, plus your range of options with a novated lease in Australia.