SA Government Employees – “Self Managed” Novated Lease
Vehicle Solutions Australia – “Self Managed” Novated Lease
Vehicle Solutions Australia have provided “Self Managed” Novated Leases to SA Government employees for over 8 years. Now that SA Government have made the decision to contract Salary Packaging services to a sole provider the “Self Managed” Novated Lease is a more competitive option than ever before. But what are the differences between a “Self Managed” Novated Lease and the sole provider’s “Managed” Novated Lease? and where does Vehicle Solutions Australia fit into this process?
What is a “Self Managed” Novated Lease?
A “Self Managed” Novated Lease works in exactly that same way as any other salary packaged car. Money is deducted from your salary before tax and is transferred to SA Governments Salary Packaging sole provider to be managed. It is the sole providers responsibility (“Self Managed” or “Managed”) to pay your lease and all other running costs as per their contract with SA Government. The only difference between a “Self Managed” and “Managed” Novated Lease is;
- You get one fuel card (BP) rather than three (You always have the options to pay for your own fuel with discount vouchers and claim the cost back.);
- You are required to pay for your annual scheduled service, insurance renewal and registration renewal yourself and claim these expenses back through the sole providers online app. These claims are reimbursed to you within 24 to 48 hrs of the claim. From discussion with many SA Government employees this is what they current do on their “Managed” Novated Lease.
- You get the choice of Novated lease provider. (Vehicle Solutions Australia). Always two months in arrears as required by SA Government.
- You get the choice of insurer.
“Self Managed” Novated Lease is available to all SA Government Employees
All SA Government employees have the right to find their car at the best price, get a better deal on their finance (Lease) and organise their own insurance. These choices are available under what the SA Government call a “Self Managed” Novated Lease”. Sounds scary and a lot of work? It’s not and could save you thousands on the car price, lower lease payments, and more affordable insurance. A “self managed lease” simply means that you pay for your service cost at the time of it’s service, pay your insurance and registration renewals as they fall due. Then simple claim these costs back from the provider. Claims are refunded back to you within 24 to 48 hrs. A “Self Managed” Novated Lease reduces your management/salary packaging fees from over $320 a year to $180 a year. That saving is the cost of a vehicle service each year.
Facts about “Self Managed” Novated Lease
- FACT : Your current Salary Packaging provider does not have to sole contract/right to provide Novated Leases to SA Government Employees. This fact is not made clear in many presentations. There is a very big difference between the car finance (the Novated lease) and the Salary Packaging (the Deductions and Administration). The SA Government provider only has the right to the administration of the Salary Package payments NOT NOVATED LEASING.
- FACT : You still retain the right to find your own car (dealership of your choice), finance (Novated Lease) and your choice of insurance provider.
- FACT : This right to choice can save you thousands more over your lease term.
View these facts in a letter from the Premier by clicking HERE.
If you want to save even more try our unique car buying site called Motorbuys. Simple go to www.motorbuys.com.au. This service is free AND will save you thousands off the price of a new car. This means you will save even more on your lease payments.
Vehicle Solutions is South Australian owned and operated. We have been assisting SA Government employees with this choice for over 8 years. Please make sure you get a competitive quote from our accurate online calculator, call us anytime on 1300 990 880 or drop into our office at 288 Glen Osmond Rd Fullarton to discuss this in more detail.