Here we provide you with some of the more frequent questions our team
gets asked. If you still can't find the answer you're looking for, please
feel free to contact us either by phone, e-mail or via our 'Submit an enquiry' option.
Where do I start?
If you choose to enter a Novated Lease, there are a few simple steps you need to take before getting your new car. First you need to check if you are eligible (see the next question for more information). After this, give our Novated Lease consultants a call on 1300 017 137 and follow the prompts to have a chat about your needs. They’ll then guide you through the process until you have the keys to your new car!
How do I know if I’m eligible?
To be eligible for a Novated Lease, you must not be on a probationary employment period and your employer must be willing to enter into the agreement as well. If your employer would like more information, we have a page all about Novated for Employers.
Do I have to do it through my employer?
Yes you do, as the funds are required via a Salary Sacrifice, therefore your employer must be involved.
What documents will I need?
All you need is your drivers license, pay slips and the settlement documents that Fleetcare will supply you with. If you are buying a private vehicle, you’ll also need the registration, inspection certificate and photos of the vehicle. From here, we’ll do the rest!
Do I have to buy a new vehicle to enter into a Novated Lease agreement?
No you don’t. It is more common for people to choose a brand new vehicle to novate, however Fleetcare can organise a second hand vehicle for you as well. As long as the vehicle will be less than 8 years old by the end of the lease, leasing a second hand vehicle is possible (for luxury vehicles, check the age criteria with your Novated Lease consultant).
To find out how much it would cost you, fill out an information request form, or give our Novated Lease consultants a call on 1300 017 137 and follow the prompts.
I have a trade in. Can it come off the purchase price?
Unfortunately the trade-in cannot come off the purchase price of your Novated Lease vehicle. You can however speak to the dealer and organise the trade-in as a separate transaction.
How can I work out what my savings will be?
It’s as easy as heading to our Novated Lease calculator and entering the relevant figures, or taking your Salary Packaging Schedule to your tax advisor and discussing the arrangements with them.
What can I do if the quote is higher than I expected?
The best thing to do is to speak to your Novated by Fleetcare account manager and let them know what types of vehicles would suit your needs and budget. They can then work with you to prepare further quotes.
Can I choose the insurance company? I might be able to get a better deal elsewhere.
This is possible; however it will be subject to Fleetcare’s approval. If you decide to source your insurance from your own provider we will allow for this in your quote so that you can pay for the insurance yourself and then submit a reimbursement through your online account. Please note that Fleetcare’s insurance product is built into your Novated Lease at a competitive rate, saving you the hassle of sourcing your own.
Can I set my residual lower than recommended?
This may be possible; however the Australia Taxation Office prescribes minimum and maximum amounts that the residual can be set at. These minimum and maximum amounts depend on the original purchase price of your vehicle, so please see below for the table on residual percentages.
In order to minimise the chances of having to make up a shortfall, it may be beneficial to set the vehicle residual lower than the expected value at the end of the lease, rather than higher.
What happens if I break the lease early?
An early termination of your lease will incur a fee that will be charged to your Novated by Fleetcare account due to additional administration costs involved. Finance penalties will also apply, however you will need to check your finance documentation for the penalties that apply directly to you.
What happens if I lose my job?
We can transfer your Novated Lease to a straight finance loan with the financier. Fleetcare also offers lease protection insurance which covers your finance expenses for up to 3 months after losing your job.
What happens at the end of the lease?
Fleetcare will contact you to discuss the upcoming termination of your lease. There are several options you have when it comes to your vehicle.
- Refinance it with us provided it is no older than 8 years.
- Pay out the residual & keep the car.
- Pay out the residual & sell the car yourself.
- Get Fleetcare to arrange immediate resale via our partner Pickles Automotive Auctions.
What is FBT?
Fringe Benefit Tax (FBT) is a tax that is paid on certain benefits that employers can provide their employees with (ie- a Novated Lease). FBT is separate to income tax and is based on the taxable value of the benefit you have been provided with.
How does FBT work?
Fringe Benefit Tax is a tax which is based upon the value of the benefit of your private use of (in this case) a Novated Lease vehicle. The calculation of liability is made from the cost of the vehicle and the annual kilometres.
Once I’ve entered a Novated Lease
Can I choose where the car is serviced?
You can choose from one of Fleetcare’s 10,000+ approved repairer outlets Australia-wide, where you can benefit from pre-negotiated labour rates and quality service. To find your closest approved repairer, visit the Fleetcare Finder page.
Can my family drive the car?
Yes they may, however you will remain responsible for how the vehicle is driven and cared for.
I’ve just received my registration papers. What do I do with them?
Simply send the papers immediately to:
Email - firstname.lastname@example.org
Or post to-
GPO Box 9997
Your capital city
We will then do the rest. Easy!
How do I get my reports?
Simply log on to your account through our Client Portal. If you’ve forgotten your password, simply request a new one. In this portal you’ll see everything related to your Novated Lease and will be able to access exclusive tools to help you get the most out of your lease.
I have some expenses that I paid for. Can these get paid back to me?
Yes, provided they are legitimate vehicle operating expenses and you have a valid tax invoice, Fleetcare will reimburse you. Log on to your account through our Client Portal and click on the reimbursement button.
If my vehicle is in for repairs can I get a hire car, and if so who pays for it?
As car hires are not a legitimate vehicle running cost, they are not included in your Novated Lease package and therefore the cost cannot be reimbursed to you. Some insurance companies offer a car hire option as part of their policy, however you will have to contact them with regards to payment as it is not claimable through Fleetcare.
Fleetcare offers discounted hire car rates through Hertz to all its clients. Simply visit our Hertz car hire page or click on the car hire section under ‘Resources’ in the Novated portal for a quote.
What happens if I don’t spend my entire budget?
If your account is in credit, Fleetcare will reimburse the full amount of the credit to your employer, who will then pass this on to you through the normal payroll system. If you decide to undertake another Novated Lease, it is possible for this credit to roll over to your replacement vehicle costs.
What happens if I find I’m travelling more/less kilometres then nominated?
If you find this is happening, contact your account manager to have you salary deduction amended. You can do this at any time throughout your lease.