A Novated Lease is a type of salary packaging arrangement that you can make with your employer, where you agree to set aside some of your pre-tax salary to pay for a car of your choice, and all the running costs that come with it.
A novated leasing provider, such as Fleet Network, works with employers to offer this as a staff benefit. The provider then can source the vehicle, arrange everything you need and manage the lease.
There’s no doubt that there are many benefits to taking up a novated lease. These include:
- Saving thousands by paying for vehicle expenses with your pre-tax income.
- Reducing your taxable income.
- Stressing less – your finance repayment and all running costs are budgeted for and included in one easy payment per pay period.
- Saving on GST on the vehicle and running costs.
- Taking advantage of a provider’s buying power to get the best price possible on your vehicle.
- Plus so much more.
For most Australian employees, a novated lease is a compelling way to pick up a car and save on tax in the process. However, there have been instances in which employees have committed to a novated lease when it hasn’t been in their best interests.
Why should you choose Fleet Network as your novated leasing provider?
As a novated leasing provider, Fleet Network lives by a Statement of Integrity: transparency, responsible practices and member care. The bottom line is, if we don’t think a novated lease is suitable to your situation, we will tell you!
Transparency
- When enquiring about a novated lease with Fleet Network, all employees are provided with a detailed proposal, outlining:
- Finance costs.
- Loan terms.
- Residual values applicable at lease end.
- All vehicle running costs.
- Ongoing salary deductions.
- Employee savings.
- Tax savings.
- Risk protection items.
- Finance costs are clearly itemised to ensure that the applicant fully understands the commitment being undertaken.
- We highlight any pitfalls and risks: such as the impact of breaking the lease, moving employers or underestimating running costs.
- We clearly explain the running costs and residual amount owning to the financier at the end of the lease.
This ensures that our members have a complete understanding of their financial commitment, with no surprises down the line.
Responsible Practices
We are committed to our responsible lending practices. We conduct suitability assessments on all prospective applicants, verifying that the employee will be able to meet the payment obligations of the lease.
We also encourage applicants to seek independent financial advice to ensure they are making the best decision.
Member Care
We are dedicated to providing our members outstanding service. You’ll be given a dedicated novated lease specialist at Fleet Network to guide you through the entire process right from the start. We pledge to always act with fairness and to resolve any issues promptly.
Plus, when you call us, you’ll talk to a real person!
With teams across Australia, we’re as local as you and will respond to your enquiry within four business hours – that’s our promise to you.
Find out more about Fleet Network and novated leasing in Australia
Fleet Network has over 25 years’ experience helping government and private employees across Australia with salary packaging new or used vehicles.
Speak to us and we’ll provide you with more information on novated leasing. With nothing to hide, we will give you all the pros and cons so you can make the right decision for your situation.
We will also provide obligation-free options, tailored specifically for you. Make the call to Fleet Network on 1300 738 601 today.
