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Why should I include the vehicle running costs in my Novated Lease?

Why should I include the vehicle running costs in my Novated Lease?

EASY, CONVENIENT AND VERY TAX EFFECTIVE.

Including the running costs in your Novated Lease (Fully Managed Novated Lease) is more tax effective and is far more convenient because everything is paid for out of deductions from your pay. This is no more needing to budget for those big registrations and insurance bills (that inevitably arrive at the same time), no more finding cash or credit for fuel or worrying about how big the service bill is going to be. All of the running costs are budgeted for and paid by us when they come due. It is the Novated Lease providers role to manage your budgets and keep you updated.

  1. We give you a fuel card that you can use at any petrol station and service centre.
  2. Send us your registration and insurance renewals well before the due date for payment.
  3. Book your car in for servicing or tyres and get the workshop to call us for payment.

Adding the running costs to your Novated Lease means that you save income tax and GST on every dollar Salary Packaged (paid before tax).

STOP PAYING MORE TO HAVE YOUR RUNNING COSTS MANAGED

A common question we get asked about Novated Leasing involves the running costs. Some people believe that Novated Leasing companies make money out of including fuel, tyres, registration, insurance and scheduled services. In some cases this is true, there are companies that charge extra to manage these expenses under separate vehicle management programs. We don’t. Vehicle Solutions Australia has a fixed annual fee of $395.00 that covers the lease payments and the management of every vehicle expense. This management also includes changes to your budgets throughout the package term, administration in changing employers or package cancellation before the end of the lease.

YOU GET A FUEL CARD

Vehicle Solutions Australia provides all of its customers with a MotorPass card. MotorPass is accepted at over 15,000 locations Australia wide including every fuel station (except for a few privately owned non-franchise stations), service centres like Ultratune and Repco as well as most tyre retailers. The cards are also accepted in most franchise car dealerships for service and parts. The bill at the end of each month is sent directly to Vehicle Solutions Australia for payment.

REGISTRATION & INSURANCE

When these accounts fall due simply scan and email the accounts to our admin email for a full payment. It is important to allow Vehicle Solutions Australia enough time to process the account so please don’t leave the account until the day before it’s due. With your insurance use the renewal notice to shop your premium to at least one other provider every year. It’s surprising how much you can save.

ESTABLISH THE CORRECT BUDGETS AND CHECK-IN TO YOUR ONLINE ACCOUNT FROM TIME TO TIME

In our online Novated Lease calculator, we use both the vehicle category (ie. small hatch, 4×4, large sedan…) and the annual km’s you travel to estimate your vehicle budgets for fuel, tyres, and schedule services. You always have the option to modify or change these budgets before starting out and at any stage during the Novated Lease term. You can check how your package is tracking by logging into our online accounts system which shows you every transaction in detail and provides a running balance so that you know how much is left in the account.

For more information or a detailed quote contact us on 1300 990 880 or try our Novated Lease Calculator to see how much you could save.