FAQs Heavy Commercials
Still have questions? Read through our helpful FAQ's
or Contact Us and we can help find your answer.
How much will leasing a vehicle save me over owning it?
-
There are two parts to this answer.
Firstly there is hard cash savings. As we purchase, service and sell tens of thousands of vehicles across Australia and New Zealand we buy at great prices, which means when you lease a vehicle from us you are spreading a lower cost over the life of the vehicle. This leaves your own cash or credit facilities intact and ready to invest back into your business to get a return. Taking this into account leasing could save you thousands per vehicle.
The second area of saving is that a Fully Maintained Operating Lease takes away the hassle and administration of running vehicles. Buying, selling, servicing, managing and fuelling a vehicle is simplified freeing up valuable time for you to focus on your business.
Ask us how much we can save for your own personal circumstances by calling 1300 666 001 or click here to enter an enquiry.
How much of the day to day management of a vehicle or a fleet can you take away from me?
Some customers simply tell us their plans and vehicle needs and we do the rest, even down to speaking directly with their drivers.
With registrations, safety certificates, fuel cards, infringements, tolls, manufacturer recalls, service intervals, accidents, tax and new legislation, there are so many things to contend with even we have to work hard to keep on top of them. We have an infrastructure, a system and skilled staff dedicated to taking care of your vehicle or fleet.
So if you or your workforce need to stay safe, compliant and mobile, why would you do it yourself when you have a business to run or services to provide?
How do your rates and fees compare to my bank?
Leasing is highly cost effective - we actually lease vehicles to banks.
Interest cost and fees are competitive however you should note that these are only a small part of the whole life cost of a vehicle. Depreciation and running costs are big elements which if the fleet is chosen carefully can be minimised.
We can help you with this choice. Margins and administration costs represent less than 10% of the overall running cost of the vehicle. What your bank can't do is help you reduce the other 90% of cost associated with running a vehicle and we can.
This is the added value that sourcing your vehicle from FleetPartners can provide.
Why shouldn't I just give my drivers an allowance and let them get on with it?
It may cost you more in both cash and management effort.
A vehicle used for business purposes is effectively an extension of the workplace. You need to ensure that your employees purchase a suitable vehicle, maintain it properly and insure it for business use.
In the last 7 years, over 20% of all fatalities at work involved a vehicle (Safe Work Australia 2012).Legislation (Commonwealth Work Health Safety Bill) came into effect on 1st January 2012, and you could be exposed to substantial fines if a vehicle incident occurs at work and you don't report it to the regulator or cannot prove you have taken all reasonable steps to ensure your drivers are qualified or permitted to drive on your behalf in a suitable vehicle
What happens if I need to extend the term?
We have flexibility in our lease terms.
Before the end of your contract you'll be asked whether you want to replace the vehicle or extend the contract. If you would like to hold on to the vehicle because the kilometres are low or you're undecided we'll recalculate your rental and reduce your ongoing cost over the extended life of the lease.
Why would I want to have my maintenance costs budgeted?
Because we set a fixed budget that will be lower than you current variable costs and take away the risk of you having to pay more than you expected. This helps with cash management, avoids surprises and you also know you're benefiting from lower labour costs and higher parts discounts.
As long as the vehicle is serviced (and we'll book it in for you with our OneClick service) the costs are taken care of.
What happens if I need to return the vehicle early?
Let's say you tell us you want the vehicle for 36 months and you decide after only 22 months you don't need it..
Just tell us when you want to return it and where it will be. We then work out what you would have paid us over the 22 month term that you've actually had the vehicle for and you pay us a balancing amount. You are no worse off than if you'd told us you only wanted the vehicle for 22 months from day 1 of the contract or indeed if you bought the vehicle outright
What happens at the end of the contract and I've done more or less kilometres than I thought?
This shouldn't happen because we monitor your usage for you and let you know when you are under or over your contracted kilometres. We then adjust your contract to ensure you get back on track. If you accept our recommendation, you will not receive a charge for being over - even if you are.
If I have an accident do I have to sort it out?
This is a traumatic event and with one phone call we can take care of everything from advising the driver on the scene and handling all the necessary documentation, to the repair process and handing the keys back to the driver.
We even liaise with the insurance firm and arrange the repair estimates as well as manage the repair agent to ensure the downtime is kept to a minimum.
If the vehicle breaks down what am I covered for?
Call the breakdown number and we will arrange for someone to come out to either repair your vehicle on the roadside or tow it to an agent who can get you on your way again.
If the vehicle has to stay at the garage we can arrange for you to carry on to your destination or return home. Should you need a temporary vehicle we provide you a temporary vehicle service to keep you mobile.
I use the vehicle as a tool of the job so what condition are you expecting it to be returned in?
In a condition that is appropriate for the use of the vehicle.
The condition of a returned vehicle can vary and we understand that a level of wear and tear occurs throughout the working life of a vehicle and we allow for this.
In our two Fair Wear and Tear guides - one for cars and one for commercial vehicles, we detail the level of wear and tear that we think is appropriate. We want you to order your next vehicle from us, so we want this to be as transparent and fair as possible.
What costs can be included in a Fully Maintained Operating Lease?
A Fully Maintained Operating Lease can include all maintenance costs, (both scheduled servicing and any unscheduled repairs), registration renewal, tyre replacements, comprehensive insurance, accident management, roadside assistance, fuel, e-tag management and replacement vehicles in the event of breakdown. Alternatively, the lease can be customized to your preferences by including only the services listed above that you choose.
Is there a minimum required fleet size to be eligible for Operating Leases?
No, there is no minimum fleet size required to be eligible for an Operating Lease. Our customers range in size from sole traders with one vehicle to some of the largest publicly listed companies in Australia with fleets of over 1,000 vehicles.
What ongoing support can I expect if I become a FleetPartners customer?
Every FleetPartners customer is provided a dedicated account manager to assist with any enquiries they might have. In addition, our online portal gives our customers access to up to date reporting and data whenever they want.
How much will leasing a vehicle save me over owning it?
There are two parts to this answer.
Firstly there is hard cash savings. As we purchase, service and sell tens of thousands of vehicles across Australia and New Zealand we buy at great prices, which means when you lease a vehicle from us you are spreading a lower cost over the life of the vehicle. This leaves your own cash or credit facilities intact and ready to invest back into your business to get a return. Taking this into account leasing could save you thousands per vehicle.
The second area of saving is that a Fully Maintained Operating Lease takes away the hassle and administration of running vehicles. Buying, selling, servicing, managing and fuelling a vehicle is simplified freeing up valuable time for you to focus on your business.
Ask us how much we can save for your own personal circumstances by calling 1300 666 001 or click here to enter an enquiry.
How much of the day to day management of a vehicle or a fleet can you take away from me?
Some customers simply tell us their plans and vehicle needs and we do the rest, even down to speaking directly with their drivers.
With registrations, safety certificates, fuel cards, infringements, tolls, manufacturer recalls, service intervals, accidents, tax and new legislation, there are so many things to contend with even we have to work hard to keep on top of them. We have an infrastructure, system and skilled staff dedicated to taking care of your vehicle or fleet.
So if you or your workforce need to stay safe, compliant and mobile, why would you do it yourself when you have a business to run or services to provide?
Why shouldn't I just give my drivers an allowance and let them get on with it?
It may cost you more in both cash and management effort.
A vehicle used for business purposes is effectively an extension of the workplace. You need to ensure that your employees purchase a suitable vehicle, maintain it properly and insure it for business use.
Two thirds of fatalities at work involve a vehicle (Safe Work Australia 2014). Legislation (Commonwealth Work Health Safety Bill) came into effect on January 1st 2012, which could expose you to substantial fines for unreported vehicle incidents or where you cannot prove you have taken all reasonable steps to ensure your drivers are qualified or permitted to drive on your behalf in a suitable vehicle.
Why would I want to have my maintenance costs budgeted?
Because we set a fixed budget that will be lower than you current variable costs and take away the risk of you having to pay more than you expected. This helps with cash flow, avoiding surprises, lowering labour costs and increasing parts discounts.
As long as the vehicle is serviced (and we'll help book it through our OneCall service) the costs are taken care of.
What happens if I need to return the vehicle early?
Let's say you initially want the vehicle for 36 months and you decide after only 22 months you don't need it.
Just tell us when you want to return it and where it will be. We then work out what you would have paid us over a 22 month term and you pay us a balancing amount. You are no worse off than if you'd told us you only wanted the vehicle for 22 months from day 1 of the contract or indeed if you bought the vehicle outright.
If the vehicle breaks down what am I covered for?
Call OneCall and we will arrange for someone to come out to either repair your vehicle on the roadside or tow it to an agent who can get you on your way again.
If the vehicle has to stay at the garage we can arrange for you to carry on to your destination or return home. Should you need a temporary vehicle we provide you a temporary vehicle service to keep you mobile.
What’s the best way to transition my fleet to fully maintained Operating Leases?
A transition to leasing can be achieved either via a Sale and Leaseback, where we purchase your current vehicles from you and lease them back on operating leases, or a more gradual roll on/roll off strategy. If you are interested in receiving a tailored solution from us for the transition of your fleet please feel free to get in touch.
Do you only operate in Australia and New Zealand?
FleetPartners has offices In Perth, Melbourne, Sydney and Brisbane as well as Auckland, Hamilton, Wellington and Christchurch.
However, as part of our international alliance we have global partnerships with ALD and Wheels, covering over 30 countries, and managing over 1.3 million vehicles worldwide. This means that we are able to assist our customers who have operations in other countries that need local knowledge and advice. Our partners are well placed to provide the highest levels of service and together we're able to supply an overview of your global fleet on a single consolidated report.
What is the statutory method of calculating Fringe Benefits Tax (FBT)?
Formula: Taxable value = ((A x B x C) - E) / D
Where:
|
A |
the base value of the car |
|
B |
the statutory percentage, which in most cases is 20% |
|
C |
the number of days in the FBT year when the car was used or available for private use by employees (private use days) |
|
D |
the number of days in the FBT year (365 or 366 in a leap year) |
|
E |
the employee contribution |
What does the term “grandfathered” mean?
In 2011, the Federal Government made a change to the FBT rate applicable under the statutory method to a flat 20%. The effect of this change meant that any new commitments entered in to from 7.30pm on 10th May 2011 were to assume this new flat rate and any pre-existing arrangements would be 'grandfathered' either until the end of the contractual period or at the point in which a variation to the existing contract occured. In practical terms, varaition means a change in employer, lease extension, refinance, change to terms e.g. residual value, accessories fitted requiring change to lease payment amount.
What exactly do we mean by “days unavailable”?
Here are some examples:
- Parking the car at your employer's premises, handing the keys to your employer (thus leaving your vehicle unavailable for private use) constitutes days unavailable.
- Your car is undertaking major repairs repaired for 3 days or more does constitute days unavailable.
- Leaving your car at the airport whilst on a business trip when you have the keys does not constitute days unavailable.
- Routine repairs or maintenance lasting 1-2 days doesn't constitute days unavailable.
- Being unable to drive your car while convalescing from a work injury does not constitute days unavailable unless you organise for the vehicle to be:
- stored away from your residence, and
- your associates do not have custody or control of the vehicle
Please note that one day is considered 12am - 11.59pm, so as an example if you relinquish custody of your vehicle at 5.00pm on the 5th of March and assume control again at 8.00am on the 7th of March, only one day is considered unavailable.
We encourage you to work with your employer's tax advisor to consider further interpretations of the ATO's consideration for claiming days unavailable.