Did you know your job could help get you into the car of your dreams, and possibly save you thousands? It is possible with novated leasing, and it is a lot less complicated than you might think. A novated lease is a simple car leasing arrangement between you, your employer and a fleet management company like us, Toyota Fleet Management. And it’s growing in popularity, as more people learn how advantageous it can be, both financially and personally.
Here are our answers to some of the most commonly asked questions about novated leasing and how you can take advantage of the benefits.
1. What’s the difference between a standard car loan and a novated lease?
In short, there are plenty of differences, such as your car lease and running costs coming out of your pre-tax salary. There’s a handy calculator you can use to see how much you can save compared with a standard car loan. It’s also worth knowing that Toyota Fleet Management has the power to lend directly, which means our interest rates are typically some of the lowest in the market.
2. Where do the savings come from?
You don’t pay GST, which means you can save thousands on the purchase price, and all the running costs, including fuel and servicing. Then there’s the fact that the payments come out of a combination of your pre- and post-tax salary deductions, which means your PAYG tax is reduced, potentially saving you even more.
3. Can I choose the car I want?
Absolutely. A novated lease with Toyota Fleet Management gives you the freedom to choose any car, make or model, new or used, whatever suits your lifestyle. You are not restricted to choosing just Toyota Group vehicles.
4. Is a novated lease a form of salary sacrifice?
In a nutshell, yes. Novated leasing is just a simple arrangement between you, your employer and a fleet management company like Toyota Fleet Management. It’s a smart way to get you behind the wheel of a new car, by having your car lease and running costs come out of your pre- and post-tax salary.
5. What about all the extra costs, like stamp duty and servicing?
All the upfront vehicle costs, like stamp duty and registration, are included in the initial quote as part of your monthly payments. All ongoing vehicle maintenance costs are also covered in your monthly payment – even your fuel usage – so you’ll never be caught out. That means you’ll enjoy complete certainty around all your car costs for the length of your lease, which makes budgeting easier.
6. How do I apply?
Applying for a novated lease with Toyota Fleet Management couldn’t be simpler. Just contact us to get a quote for your chosen car and complete and submit the finance application. If approved*, you will be sent the lease documents that need to be signed by yourself and your employer. Then simply return the documents to us and your car will be delivered. From start to finish, it can take us between two and five working days to process your order and deliver your new car.
7. What happens at the end of a novated lease?
You can choose what happens next. If you want to upgrade to a new car, you can get a new novated lease, or you can keep your current car by extending your current novated lease. Alternatively, make us an offer to purchase your car at its residual value.
8. Want to know more?
To find out more about how a novated lease could work for you, get in contact using the links below.
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The information in this article is for your general information only. It is provided by Toyota Fleet Management, a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536. *Subject to lending criteria and approval of your finance application. Full details available on request.