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Fully Maintained Novated Lease vs. Non-Maintained Novated Lease: What’s the Difference?

Novated Leasing is a popular salary packaging option amongst employees across Australia. It’s a three-way agreement between you, your employer, and a Novated Leasing company like Fleetcare. If you want an easy way to save money on buying and running your next car, then read on! Here’s a breakdown of a Non-Maintained Novated Lease and a Fully Maintained Novated Lease to help decide which is the best option for you.

A Non-Maintained Novated Lease

A Non-Maintained Novated Lease is a salary packaging option that allows you to pay for the finance lease rentals of your new or used* car from your pre-tax salary. You are then responsible for payment of the running costs of the vehicle which are paid post-tax.

A Fully Maintained Novated Lease

Just like a Non-Maintained Novated Lease, a Fully Maintained Novated Lease is a salary packaging option that allows you to pay for the finance lease rentals of your new or used car from your pre-tax salary. However, unlike a Non-Maintained Novated Lease where the running costs are paid post-tax by you, the running costs are included in the lease payment that is paid from your pre-tax salary. These running costs include fuel cards, registration, insurance, tyres, maintenance and more!

Benefits of a Novated Lease

Both novated lease types offer the benefits of flexibility, tax deductions, and access to vehicle specials and dealer discounts. A Fully Maintained Novated Lease will further your savings with discounted maintenance, tyres and fuel whilst further reducing your taxable income by including these running costs in your pre-tax payment. Depending on your employers treatment of GST, you’ll also save GST on all running costs saving you even more!

As far as convenience goes, a novated lease that is fully maintained can be more beneficial as you’re not caught out with out of pocket expenses. All costs are simply paid for in a single deduction before you receive your paycheck allowing you to focus on the finer things in life and never have to worry about finding money for new tyres again.

So, what’s best for me?

A Fully Maintained Novated Lease option provides greater benefits because the finance lease rentals and running costs are taken out of your pre-tax salary saving you a huge amount of money in the long run. You’ll also be eligible to save 10c off every litre of fuel from all service stations as well as half price car washes with a Fleetcare Fully Maintained Novated Lease.

The best way to decide what one will work best for you and your needs is to weigh up the additional costs of maintenance, fuel and everything in between. For more information or to speak to one of our Novated Lease specialists, call Fleetcare on 134 333.

*If you’re looking to lease a used car, there may be restrictions depending on the age of the vehicle (for example, if the vehicle will be older than 10 years at the end of the lease) but all used vehicles are assessed on a case-by-case basis.

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