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Frequently Asked Questions

To help you understand if a novated lease is right for you, we've answered our most common questions.

Your questions answered

How does a novated lease work?

A novated lease is a salary packaging option that lets you pay for a new or used car and its running costs from your pre-tax salary. It’s a three-party agreement between you, your employer, and Fleetcare.

How do I know if I’m eligible for a novated lease?

If you’re a salaried employee, completed your probation period at work and your employer is happy to enter into the agreement with us, you’re eligible.

Can I take out a novated lease agreement through my employer?

Yes. It’s a salary sacrifice arrangement, so your employer must be involved.

What is the difference between a novated lease and a car loan?

With a car loan, the vehicle payments and running expenses are paid for after you’ve been taxed. With a Fleetcare Novated Lease, the cost of the vehicle, finance and running costs are taken from your pre-tax salary leaving you with more money in your pocket.

How much can I save on a novated lease compared to a car loan?

To see how much money you could save with a Fleetcare Novated Lease, check out our Novated Lease calculator.

How do I pick my vehicle for the novated lease?

Fleetcare will source the car of your choice at the best possible price, with fleet discounts on the purchase price and any accessories you’d like. Already sourced your new ride or prefer a used vehicle? No problems! We’ll make sure all the paperwork is done and the vehicle delivered on time and at a great price.

Do I have to buy a new vehicle to enter into a novated lease agreement?

No. You can novate a used car however, there maybe 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. You can even novate your existing vehicle.

I love my car. Can I novate my existing vehicle?

Of course you can! A sale and leaseback allows you to sell your car to Fleetcare and lease it back under a novated lease arrangement. You get the value of your car in cash, so you can put it to better use, and keep using your car as normal. You will also enjoy all the great benefits of a novated lease including potential tax savings, convenience and better budgeting.

I have a trade-in vehicle. Can it come off the purchase price?

With Fleetcare, you can trade-in a vehicle as part of the process for your Novated Lease, however the trade-in funds cannot be used to reduce the lease principle.

How do I know how much I’m going to pay for my novated lease?

If you’ve got a vehicle in mind, you can try our online calculator. Once you’re ready, one of sales consultants can provide you with a personalised quote and talk you through the numbers. Everyone’s situation is different, and we encourage all our customers to seek financial advice before committing to a lease.

Do I get fuel discounts with a novated lease?

As a Fleetcare Novated Lease customer, you pay no GST on your vehicles running costs including fuel – that’s a 10% saving right there. You’ll have access to all major fuel suppliers BP, Ampol, Shell, Coles and Woolworths nationwide. You’ll also enjoy half price car washes and the ability to earn BP Rewards points, available for all Fleetcare customers at BP stations. Try our novated lease fuel savings calculator now!

Is insurance included in my novated lease?

Our comprehensive insurance product is specifically tailored to leased vehicles and is included as standard in a Fleetcare Novated Lease. You can also include Guaranteed Asset Protection (GAP) ensuring you’re never out of pocket in the event of a total loss. We also offer other protection options like extended warranty.

Can I source my own insurance?

Yes. We always try to find a competitive insurance quote on your behalf, but it is possible to source your own insurance. Whether you source your own comprehensive insurance or take out a Fleetcare insurance policy, you do have the opportunity to include our additional protection cover options like Guaranteed Asset Protection and extended warranty. If you're not sure about your insurance options, just speak with one of our friendly consultants.

Can I include accessories in my novated lease?

Of course you can! All Fleetcare Novated Lease customers receive a vehicle protection accessory pack included in their lease package. Our accessory packs provide great value for money and all the protection needed to keep your vehicle’s interior and exterior in great condition. For those that need that little bit more, we offer a range of vehicle protection options designed to enhance the safety and enjoyment of your vehicle. For a full list of options, click here.

If you have additional accessories or add-ons you want to include, Fleetcare can source these, as well as negotiate the best price with our fleet discounts.

How are residual values calculated?

The residual value is set by the Australian Tax Office and depends on the total amount financed and the term of the lease.

Term of Lease  Residual %
12 Months  65.63%
24 Months 56.25%
36 Months 46.88%
48 Months 37.50%
60 Months 28.13%
How does Fringe Benefits (FBT) work?

Motor vehicle Fringe Benefits Tax (FBT) applies where a vehicle is supplied by an employer to an employee or their associate, and is available for private use.

As the employer provides the fringe benefit, they are liable for the FBT payable, however under salary sacrifice arrangements, where the employer should be no worse off than if they had offered remuneration in the form of straight salary, the employer generally charges the FBT payable to the employee’s salary package pre-tax.

You can also make post-tax, GST inclusive employee contributions which reduce the taxable value and in some cases, can result in no FBT being payable at the end of the FBT year. The taxable value of the fringe benefit is calculated using either the statutory fraction or operating method.

Fleetcare's FBT service provides a calculation under each method and identifies the most cost effective method. You should always consult with a tax professional to ensure the best outcome for your personal circumstances.

What happens at the end of my novated lease?

When you come to the end of your lease, you have four options:

  1. Trade in, trade up - Trade in your existing vehicle to Fleetcare (or sell it privately) and upgrade your car with a new lease.
  2. Double down - Double your savings by refinancing your existing vehicle and leasing a new vehicle at the same time.
  3. Refinance - Refinance your residual payout for another lease term.
  4. Payout - Payout the residual amount and the car is yours.

Learn more about what to expect at the end of your Fleetcare Novated Lease.

What is a self-managed lease?

A self-managed novated lease is a salary packaging option that lets you find the best vehicle purchase price, select the financier with the most competitive interest rate, as well as organise your own insurance. Once the lease is set up, your employer’s nominated salary packager will manage the running costs of the vehicle.

Can I have more than one novated lease?

Yes, of course you can! You can double the benefits of a novated lease, by leasing additional vehicles for household. We call this process 'multi-lease'.

I have a novated lease with another provider. Can I transfer my lease to Fleetcare?

Yes, of course you can! This process is also known as a re-novation. It’s important to us that we make the transition for you as smooth and hassle-free as possible. Speak with our friendly team about the process on 134 333, or learn more about a lease transfer here.

My employer already uses a salary packager. Can I still novate a car through Fleetcare?

Yes, of course! If your employer already has an arrangement with a salary packager, you can still access all the great benefits of a Fleetcare Novated Lease. Learn more about novating through a salary packager.