what is a novated Lease?
A novated lease is a way to purchase a vehicle using salary packaging. Simply, it is an arrangement with your employer for them to pay your vehicle lease and vehicle operating expenses out of your salary package through a combination of both pre-tax and post-tax salary deductions.
A novated lease allows you to drive the new Isuzu you want, one that suit your needs and lifestyle and it also gives you the convenience of not having to pay for fuel, servicing etc out of your pocket as running costs can be built into the novated lease.
Did you know that a Novated Lease can give you great fleet discounts on the purchase of your new Isuzu. We are the experts in Novated purchases- talk to us first to ensure that you get the very best possible deal with Isuzu Fleet under a Novation package. You can even purchase a used vehicle under a Novated Lease if you wish to do so.
Lease Set Up
Choose your vehicle, we price the vehicle under Isuzu Novated Fleet deals applicable and you make your purchase though us as normal. Your novated lease provider then arranges the Novated Lease between you, your employer and financier.
Paying Your Lease
You email your Novated Lease Provider with the Contract to Buy. The Novated Lease is set up and your employer then makes payments to the Novated Lease Provider from your pre-tax salary deductions. Your motoring costs are now covered.
You get a great fleet discount, save on tax and running costs, fuel, servicing, insurance, tyres, car payments are all included in the Novated Lease. You get to enjoy your vehicle with no out of pocket costs as all you vehicle expenses are covered.
Yes, absolutely. It is your choice where you purchase your vehicle from. Most customers want to buy from their local dealer. The Novated Lease Provider cannot force you to have the vehicle supplied by someone else. The best way to purchase under a novated lease is to come in and sign a Contact to Buy with us and supply that to the Novated Lease Provider. We ensure that you get the fleet discounts that you are entitled to.
You also get all the benefits of buying locally such as free service loan vehicles, preferential bookings and discounts.
Novated Leasing is a way of purchasing a vehicle by sacrificing part of your regular salary. Your employer then makes the loan repayments on your behalf. Your loan repayments and running costs built into the lease meaning you have no out of pocket vehicle expenses, they are all included in the lease. This is often the major attraction especially if you have difficulty in budgeting for vehicle operating expenses. However there are taxation and fringe benefits tax implications plus the added costs of paying the Novated Lease Provider management costs.
Also as this is a lease product, you will not own the vehicle at the end of the lease, there will be a substantial residual amount to pay.
Depending on your income and circumstances novated leasing may not be right for you. Novated leases are also more ridged in terms of the distance you travel which needs to be nominated as it affects leasing costs. We recommend you get independent advice before entering into a novated lease.
No, not all employers offer salary sacrifice arrangements and novated leases for vehicles. You will need to ask your HR department if this is available where you work.
Most Public Benevolent Institutions do offer novated leases and have preferred Novated Lease Providers as there are some fringe benefit tax concessions available to employees that work in these institutions. If you do wish to get a quote, come and see us first and we can price the vehicle correctly for you to give to the Novated Lease Provider.
If you leave your employer and your new employer also offers salary sacrifice and are happy to sign a new deed of novation agreement with the Novated Lease Provider your lease can continue as before.
If your new employer does not offer salary sacrifice or will not sign a new deed of novation agreement with the Novated Lease Provider, your lease services will cease and will be required to continue to make the lease repayments from your after tax income. You may also choose to payout your lease or refinance your loan with a consumer lending product.