If you drive a car, you’ll no doubt be aware of the substantial increases and fluctuations we have seen in fuel prices over the past 12 months.
These have been blamed on a range of things like covid, shipping challenges, and most recently the Russia-Ukraine conflict, and while none of these are within our ability as consumers to affect, if you have a novated lease with Prosperity Smart Drive, you need to be aware of the impact of this rising cost on your pool of funds.
In some cases earlier this year, fuel prices rose over a dollar per litre for fuel compared to early 2021. That represented an additional cost of 50 – 70% over what you will have budgeted for in your fuel cost plan with us. Of course, in many cases you will have accumulated funds that will help you to cover these additional costs – however it is important to note that additional non-budgeted fuel expenses will eat into your pool of funds that is being accumulated, ready to reimburse those larger and annual expenses like Registration, insurance, and maintenance. So, although your account may be able to sustain the higher petrol prices for now, you should periodically check your account balance through the Smart Drive online portal to ensure your balance is increasing sufficiently to cover these expenses, as well as fuel.
There are a couple of things you as a driver can do to help manage this fluctuating landscape of fuel prices. Firstly, you can touch base with our team to review your spend against your budget. Increasing the payroll deductions for fuel from your pre-tax now will mean not only ensuring you have enough funds to reimburse all of your expenses as they occur, but also increases the tax savings you make through your lease.
You also might consider is ensuring you’re getting the best fuel efficiency from your vehicle. Did you know that slow smooth take offs vs hard acceleration can make a big difference in your fuel usage, as can ensuring your tyre pressure is within optimal range, and ensuring your vehicle is regularly serviced. The other thing we recommend is using a fuel price app like the NSW government’s “NSW FuelCheck” app to show you where the best prices are to get your fuel from as fuel prices can vary significantly from site to site. Note – always ensure the site accepts the Motorpass card before filling up.
So, while fuel pricing may be beyond our ability to control, there are steps you can take to ensure you are managing your balances and getting the best value from your fuel that are straight forward and easy to manage. Safe driving!
