Novated Lease FAQs
How can I salary package a vehicle?
Who is Leasexpress and why has ME Bank teamed up with them?
Who is eligible for a novated lease?
What happens if I leave my current employer?
What is the Fringe Benefits Tax?
Will I receive statements about my lease?
What's included in a novated lease?
What happens when the lease expires?
What is meant by residual value?
How do I apply for a novated lease?
How can I salary package a vehicle?
You can salary package a vehicle using a novated lease.
What is a novated lease?
A novated lease is a great way to get the car you want at fleet pricing. It is an agreement between you, your employer and ME Bank, where your employer makes the lease payments from your salary package on your behalf.
Who is Leasexpress and why has ME Bank teamed up with them?
Leasexpress are specialists in salary packaging in order to obtain fully maintained motor vehicles. Their staff has over sixty years' experience in providing novated leases. ME Bank provides the finance needed for the lease, while Leasexpress manages the lease and ongoing vehicle costs throughout its entirety.
Who is eligible for a novated lease?
If you're an employee employed on a salary package who has the support of their employer for salary sacrificing (i.e. reducing your gross income in exchange for receiving certain benefits from your employer), then you are eligible for a novated lease.
What happens if I leave my current employer?
If you leave your current employer for any reason, you take on all further lease payments. Alternatively, you can choose to pay out the lease, sell the vehicle, or re-novate to your new employer.
What is the Fringe Benefits Tax?
A fringe benefit is a benefit provided in addition to – or in place of – salary and wages, such as a car. Fringe Benefits Tax is the tax payable on this fringe benefit.
While your employer is responsible for meeting the Fringe Benefits Tax, generally the cost of Fringe Benefits Tax is charged against your salary package.
Will I receive statements about my lease?
Yes. Leasexpress will provide you with a monthly transaction statement providing details for the month, including a breakdown of the lease and operating costs for your vehicle.
What cars are available?
You have a choice of any car – new or near-new (conditions apply). A near-new car is a car less than 7 years old at the end of the lease term. For either type of car, the purchase price must be at least $15,000. If you already have a car, you have the option of selling it and leasing it back.
You can have more than one car, depending on your ability to meet the monthly repayments and costs, and your employer's agreement.
Because of Leasexpress's national buying power, you can be assured that your vehicle will be sourced at the lowest possible price.
A list of new car options is available on our calculator.
What's included in a novated lease?
Operating costs, such as servicing, maintenance, tyres, petrol, insurance, roadside care and registration costs can all be included. You also have the option to include Redundancy Cover.
To make it as easy as possible, you will be provided with an expense card.
What happens when the lease expires?
There are a number of options. You can submit an offer to purchase the vehicle. Before the expiry date, you will need to pay out the residual value (including GST), plus any arrears and overdue interest. (Residual value is explained in the next question.)
If the residual value is greater than $5000, you may wish to refinance the vehicle for a further term.
You can also replace the vehicle with a further term, which will require a new agreement.
If you choose to terminate your lease early, you should contact Leasexpress, who will provide you with a lease termination figure together with a reconciliation of your operating costs.
What is meant by residual value?
Residual value is the amount of money you owe on the vehicle at the end of the finance term. This amount is a fixed amount, determined at the beginning of the lease and in line with Australian Tax Office's guidelines. Please note that residual value attracts GST.
How do I apply for a novated lease?
Use our calculator to obtain a quote on vehicles that are of interest to you. Once you have chosen a vehicle, call Leasexpress on 1300 363 630 and request an information pack.
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