I am a South Australian Government employee – What are my Novated Lease options?
Novated Lease Choice
SA Government employees have a choice when establishing their Novated Lease. Employees could save more every year by understanding the difference between a “Self Managed Lease” and a “Managed Lease”.
A number of years ago the SA Government chose a single provider for all Salary Packaging Administration. However to ensure that all employees have choice over where they find a car, finance that car and insure that car they enforced the need for what has been termed a “Self Managed Lease”. This term sounds scary and daunting, however it is simple and understanding this difference provides choice and competition. Vehicle Solutions Australia have been providing SA Government employees with competitive vehicle pricing, finance payments and insurance premiums for over 7 years. By getting a second quote and understanding the differences in the quotes could save you thousands over your lease term.
Firstly it starts with the best vehicle price.
A competitive Novated lease starts with the best vehicle price. Every vehicle manufacturer (such as Toyota or Mazda) have levels of discount available to companies that purchase a lot of vehicle (leasing companies, fleet buyers and online vehicle buying sites). One of the great opportunities in a novated lease is the ability to take advantage of these discounts. Vehicle Solutions established Motorbuys which is Australia’s only fully automated online vehicle buying website. By automated we mean that when you request pricing on a vehicle the computer system sends your request to every dealership in the region/s chosen (anonymously) and the dealership pricing responses are sent directly back to you (anonymously). Only then do you have a transparent competitive vehicle price that can be used to complete the Novated Leasing quotes.
A more competitive Novated Lease for SA Government employees.
The lease (finance) payments are usually the most expensive part of Salary Packaging a car. To make your lease payments as affordable as possible understand the the following factors that contribute to the payments. 1. Vehicle price; higher the price the more expensive the payments. The residual value; the higher the residual the lower the payments but the more you need to payout at the end. The inclusions in the finance such as insurances. With the right comprehensive vehicle insurance and vehicle choice you may not need insurances such as GAP, extended warranties, Tyre and Wheel, Minor dent, Roadside assist etc… These insurances simply increase the amount financed and thus the payments. *** Always read the product PDS’s and seek independent advise to make sure your personal circumstances are covered.
Agree of the Running Costs
The number of KM’s you travel and the type of vehicle chosen will effect the runnings costs such as servicing, fuel and tyres. Firstly average your weekly km’s traveled, this will give you a good spread of weekday travel as well as weekend driving. Times this figure by 52 weeks. Then factor in any normal holiday trips and you will have a very good estimate. This will then allow for a more accurate estimate to be made on the running costs. We will always use the manufactures capped price services where applicable and tyre data listed on major vehicle review sites. Fuel is estimated from the vehicle average litres per 100 kms and a cost of $1.75. This allows for a bit of buffer between different drivers and driving conditions (freeway vs town driving).
Then you will have a very competitive and accurate Novated Lease quote.
What is the difference between a Novated Lease for SA Government Employees and Salary Packaging. Salary Packaging is simply the administration of the Novated Lease. Prior to the administration all SA Government employees have the right to find a competitive vehicle price, insurance, runnings costs and finance (Novated Lease).
What is the “Self Managed Lease” option.
We have been providing this option to SA Government employees for over 7 years and our leases comply with all SA Government requirements. The “Self Managed” option provides one fuel card; you are required to claim your service, tyres, registration and insurance payments (for most people this is three claims per year). Using the providers online app you will have your claim paid within a few days. The bonus of a Self Managed lease is the lower cost ($180 per year). To have a managed lease where these payments are made by Maxxia you will pay an extra annual vehicle management fee built into your maintenance budget.
The most important part of our service of providing a Novated Lease for SA Government employees is that we are local and can sit down over a coffee and explain the service in detail. With our 7 years experience we know how to get you driving your car within a few days not weeks.
A quick phone call to our office (08 8338 4427 or 1300 990 880) on Glen Osmond rd could save you thousands over the term of the lease.
A great place to start is our online calculator. Choose SA Government in the employer list and see how much you will save.