What information is required by LeasePLUS to setup a
novated car lease?
Setting up a novated car lease is very simple. The basic requirements are a current
driver's licence, a current pay slip from your employer, and a clear credit reference
(CRAA).
The Australian Tax Office dictates the types of vehicles that can be leased through
a novated car lease agreement. Essentially, most cars, wagons, coupes and four-wheel
drives are eligible. For example a Toyota Land Cruiser is not available. In addition,
boats, caravans, trucks and other commercial vehicles including some utilities are
not acceptable. Some employers may also have their own restrictions on vehicle choices.
There is no distinction between private or business use for novated car lease. In
general, novated car leases are better suited for individuals with mainly private
usage needs. Why is this? What about if the company is paying all costs as part
of the salary package?
A vehicle under a novated car lease is regarded as a private car therefore the lease
holder determines who can drive the vehicle. Please ensure you are aware of the
insurance implications and are covered when family members or friends are driving
the vehicle.
LeasePLUS has an extensive network of over 200 dealers across Australia. The purchasing
power generated from this network helps to ensure that the price of your next new
vehicle is the most competitive in Australia.
I want the best rate of interest... how can LeasePLUS
help?
LeasePLUS sources finance from an approved panel of financiers to ensure that the
best possible rate is secured your lease. LeasePLUS is independent from all financial
institutions therefore it does not favour any one particular provider. This independence
ensures we get the best interest rate for you.
Lease terms can be between one and five years. The most common lease terms are between
three and five years. A lease can always be extended after the completion of the
initial lease term and can be rolled over for another term.
Finance approval usually takes 30 minutes. Provided the vehicle is available at
the dealership and the lease contracts are correctly signed the vehicle can be made
available to the driver within 48 hours. Our technology is built to ensure that
there are no unnecessary delays in processing quotes, questions, or applications.
The level of tax benefit depends on three main factors:
- Gross annual income: The higher the income the greater the level of tax benefit.
- Purchase price: The higher the cost of the car, the higher the cost of the total
novated car lease policy and therefore the greater the tax benefit.
- Annual kilometers: The more kilometres driven, the higher the tax benefit.
What is a residual and what happens at the end of the
lease?
The residual is the final balloon payment on the lease, generally due one month
after the final lease payment. At the end of the lease you have a number of options:
- Pay out the residual and own the vehicle.
- Sell the vehicle and pay the residual with the proceeds.
If there is a positive or negative difference between sale price and the residual
payment, the customer will either keep the excess funds or pay the difference.
- Extend the lease to cover another period of your choice under the same novated car
leasing policy.
LeasePLUS encourages its customers to choose their own insurance and roadside assist
policies which we will pay on your behalf as part of the novated car lease policy.
We can also arrange these policies for you through our own excellent service providers.
The Australian Taxation Office guidelines state that tolls, parking and infringement
fines are not eligible to be part of a novated car lease.
Your novated lease agreement will be transferred from your old employer to your
new one. Once you commence work, your novated car lease agreement continues without
any disruption to the policy. It is important to let your new employer know of this
arrangement in order to prepare for this transfer ahead of time.
LeasePLUS provides its clients with online access to their operating account that
provides statements, reports, and other useful tools that allow customers to track
their account.
How can I take action on climate change?
When you measure and offset your car travel emissions with Climate Friendly, you're funding clean energy
projects that save as much greenhouse gas as your car produces. You're also supporting new and accredited
renewable energy projects, which will help the industry grow, having a further impact on global warming.
Ranked Australia’s number one offset provider, Climate Friendly sources the highest quality carbon credits available in the world today.
One carbon credit is equivalent to one tonne of CO2. Therefore, by purchasing a carbon credit, you’re preventing one tonne of greenhouse gas emissions from entering the atmosphere.
Carbon offsetting is the process of measuring your business, car, flight, home or event’s greenhouse gas emissions then compensating for, or ‘offsetting’,
your emissions by investing in projects that reduce the amount of greenhouse gas emitted globally into the atmosphere.
The VCS Program provides a robust, global standard and program for approval of credible voluntary offsets. It is the most commonly used standard used in the voluntary carbon market at present.
VCS offsets must be real (have happened), additional (beyond business-as-usual activities), measurable, permanent (not temporarily displace emissions), independently verified and unique (not used more than once to offset emissions). For more information see
www.v-c-s.org
Climate Friendly's commitment is to fund projects that:
- Address the root cause of climate change by funding renewable energy and energy
efficiency
- Permanently reduce greenhouse gas emissions by keeping carbon in the ground
- Are additional to business as usual
- Are not used to comply with national emissions reduction legislation
- Contribute to sustainable development
- Are independently verified against a high quality international standard
- Have a 'real time' impact by closely matching the timing of emissions reduction
to your emissions