What type of cars can be leased?
Novated Leasing can be arranged for passenger or light commercial vehicle, subject to your company’s fleet leasing policy. However, motorbikes and heavy commercial vehicles are excluded. Used vehicles can be novated, provided they are not older than eight years old or more than 200,000km on the odometer at the end of the lease term, valued at more than $10,000 (exc. GST), are currently roadworthy and current registration papers for the vehicle can be supplied. For quality well maintained ex-lease vehicles click here.
What happens if I leave my employer during the lease term?
The novation agreement ends with a full reconciliation of the running costs. Then there are three options:
- Continue to pay your monthly lease rentals (excluding running costs).
- Pay out the lease and purchase the vehicle.
- Pay out the lease and return the vehicle to FleetPartners.
- In some instances you can arrange a novated agreement with your new employer.
In all instances you’ll need to complete a Fringe Benefits Tax Declaration form, stating your vehicle’s odometer reading before you leave your current employer. Please contact our Novated Leasing Team on 1300 88 22 66.
What happens at the end of the lease?
You will be contacted by a FleetPartners representative four months before lease expiry. At this time you will have a choice of extending the lease (subject to conditions) or make an offer to purchase the vehicle.
Where do I get the best price from?
You can seek quotes from your own dealer or utilise FleetPartners preferred dealer pricing network which passes on the purchase price cost savings to you.
Can I have a non-maintained lease i.e. pay for vehicle lease only?
This is subject to your employers leasing policy; however we recommend that you consider a fully maintained lease for potential tax benefits.
The dealer I sourced my quote from is asking for a fleet letter. What is this and where do I get one?
This is a letter from your employer confirming that you are entitled to a novated lease. The dealer should contact FleetPartners directly for the letter as we can arrange this on your behalf.
Can I put a lump sum of funds into the lease to reduce the monthly repayments?
No. Equity cannot be put into a novated lease.
Does my employer pay the Fringe Benefits Tax?
FleetPartners will provide a quote with an estimate of FBT using the statutory percentage method to give you the total costs to your salary package. Your employer will collect FBT for you out of your salary and forward this to the ATO at the end of the FBT year.
I have a rating one with my current insurer and would like to insure my novated lease vehicle through them. Is this possible?
In most cases yes, however this maybe subject to your company’s vehicle insurance policy.
Can I put non-standard options through the maintenance budget?
No. The maintenance budget is for servicing and repairing mechanical components of your vehicle only. Adding options or features to your vehicle will increase its value and its FBT cost. These can be paid for from your novated lease and we’ll adjust the lease payments accordingly
Who pays for my registration / CTP / insurance renewal?
Where registration, CTP and insurance are included in your lease, FleetPartners will make automatic payments. If you inadvertently receive renewal notices please contact FleetPartners immediately to change the mailing address.
Who can have Employer Contribution Method (ECM)?
ECM is available to all Novated Leasing customers, where your employer can administer this payment method.
Can I transfer a traditional Novated Lease to ECM?
Yes, as long as your employer can administer this payment method.
How do I compare a traditional Novated Lease with ECM?
Please visit the FleetPartners Novated Lease Calculator.
How do I check correct deductions are being made?
Upon commencement of your Novated Lease, FleetPartners will advise your employer of the pre and post tax salary deductions. Please check your employee pay slip.