What is a novated lease?
A novated lease is a form of salary packaging through a three-way agreement between you, your employer and the finance company. Your employer is responsible for the lease repayments while you essentially compensate through fixed wage deductions. The great thing about a car lease under a novated agreement is that the vehicle is not restricted to business use – if you want, it can operate as your own personal car.
Due to the direct involvement of your employer, you need to check up on their approval before thinking about entering this particular car lease. There should be no problems there though as employers typically favor it for being a low-cost, low-risk employee benefit due to negated penalties, outsourced administration, and no accounting liability. On your end, significant cuts on both upfront and ongoing costs add up to thousands saved.
Once you have confirmed that your employer is on board, you have basically done all the work needed on your part so you can begin reaping the benefits of our tailored novated leases.
What happens when the novated lease ends?
Our service to you does not end upon the lease’s retirement – we will be there to help you decide on the next step to take.
You may choose to own the car after the lease by paying a residual amount at the end of the term. Alternatively, you can refinance this residual and keep your existing car. However, while this offers great savings on paper and the convenience of not having to arrange selling or trading, re-leasing equates to an ageing vehicle which is more prone to mechanical issues. That could rack up some hefty maintenance fees. It is the little details like this that we do not scrimp on covering.
Thinking of buying a new vehicle at the end of the novated lease? You might need a more spacious car for a growing family, or perhaps you just fancy a change – in any case, we make refinancing a new car cost-saving and easy.
Why choose us for your novated lease?
Our novated leases provide you with a greater choice of vehicles compared to the standard company car finance options, and sweet discounts on purchase prices. We can even arrange for you to trade in your current vehicle to help offset the cost.
Have an existing car which is already under a personal car loan, dealer package or current novated lease? We can help you refinance it into a new novated lease, so you do not miss out.
As an industry expert, we are aware of the risk of unregulated providers withholding information that can affect your total finance paid. That is why we conduct in-depth negotiations with financiers and make sure the rates offered are explicit, not indicative.
We take care in monitoring and eliminating administrative costs and insurance wherever possible as these can diminish your savings.
As a novated lease is a non-cash income employee benefit, it is subject to Fringe Benefits Tax (FBT). While your employer pays the FBT directly to the Australian Tax Office (ATO), the cost is often routed back to you through additional pre-tax payments. We work to plan a package that helps offset this liability and ensure that your FBT does not exceed your income tax on pre-novated lease terms – so that as a whole, you still save big.
We take the hard work out for you by negotiating between you and your employer’s needs, and the lease provider, and customise the novated lease to suit your budget and lifestyle. We take out the time-consuming paperwork, and make the application fast and easy.
Managing the loan is a breeze under our supervision. No lump sums and surprise fees – just convenient fixed repayments through salary packaging plus discounts on petrol, maintenance, and all other car ownership expenses.
In the event that you have to leave your job, we have finance protection schemes in place to take the worry and work off your shoulders. Leave it to us to transfer the lease to your new workplace, or convert it into a finance loan.
Some loans offer the option of a balloon payment. This is the last repayment at the end of your loan term which is a relatively large sum. This can reduce your periodic payoffs and help you afford a more expensive vehicle model. However, whether a balloon payment is suitable or not highly depends on your circumstances as well as future plans for selling or upgrading. We value attention to the little details like these as they can play a big part in negotiating the right loan.
We have your best interests in mind. Hence, it is important for us also to assess if a car loan stays affordable throughout your term and does not risk posing any financial hardship in the future.