You are responsible for all running costs and maintenance, while Par Leasing is liable for the vehicle’s residual or resale value. A non-maintained novated lease is transparent and provides you with control over your car or car fleet. You only pay for its actual cost.
With a Non-Maintained Novated Lease, you are liable for all servicing, repair, and maintenance costs.
As with a fully maintained lease, you form an agreement between yourself, your employer and the financier. If you choose to set up a non-maintained novated lease, you can have the financier deduct the running costs of the vehicle from your salary.
A non-maintained novated lease offers flexibility. As an employee, you can drive vehicles of your choosing. You can dictate the end-of-lease terms, subject to the guidelines of the Australian Tax Commission.
You get to use the vehicle privately, 100% of the time. The car is yours to use wherever and whenever you wish. You also keep any equity.
Your employer’s balance sheet will not reflect the cost of the vehicle.
A novated lease enables you to pay a lower purchase price for your vehicle. Also, you will not have to bear GST costs, which will save a substantial amount of money. Par Leasing ensures affordable repayments.
If you wish to take complete advantage of what a novated lease offers, it’s best to pay for the full package. A non-maintained contract can represent tax savings but will not reduce operational costs.
A full novated lease can save you a substantial amount of money because your employer subtracts costs from his pre-tax salary. Besides this, you get access to a fuel card, roadside assistance, accident management services, and standard maintenance costs.
To decide which type of novated lease is the best value for you and your company, weigh the maintenance, service, and other expenses.
That depends on your financial circumstances. On average, lessees manage to save about $5000 after tax benefits.
You should be employed. You will qualify if you receive a salary and pay tax through the PAYG system.
Set up a lease with a finance company. Then, estimate the running costs of the vehicle. These include finance payments, fuel, insurance, servicing, and tires. Your employer will pay for these and deduct the amount from your salary.
He will recover the amount from your salary before the application of tax. If he is GST-registered, he can claim the GST amount from the Australian Tax Office. He will pass on the savings to you.
You will first speak to our consultants, who will help you establish your preferred make of car. Then, we will send your financial details for approval. We will seek a go-ahead from your employer as well.
We will then approach our extensive network of manufacturers for suitable cars and prices. Since we will request them from many channels, they will be competitive. Once the vehicle is available, we will prompt you to complete the finance documents.
We at Par Leasing own the vehicle, and you lease it from us.
They cover finance payments, fuel, servicing, tires, maintenance, roadside assistance, and accident management.
You may sell the vehicle and pay off the residual amount. If you sell it for more than this, you get to keep the profit. Extending your existing lease is another option.
Pay off the residual amount of the lease if you wish to keep the car. Doing so is advisable if you are no longer employed.
A non-maintained lease will suit you if you wish to keep your vehicle’s purchase price and operating expenses separate. It also offers you a way to keep track of the latter.