Salary packaging - motor vehicles
Motor vehicle leasing arrangements are undertaken by the University's car packaging provider LeasePlan.
There are two types of leasing options available through LeasePlan.
Government CarPlan lease
This allows the employee to build equity into the vehicle and the ability to purchase the vehicle at the end of the lease term for the residual value plus GST. The option is also available for the employee to return the vehicle at the end of the lease term.
This lease is structured for the employee to build equity into the vehicle with the employee purchasing the vehicle at the end of the lease for the residual value plus GST.
Leasing second-hand vehicles
Employees are able to lease second-hand motor vehicles under novated leasing arrangements.
Interested employees need to source the vehicle, then provide LeasePlan with information on the model and pricing. LeasePlan then generate a quote. (Employees can also sell their own vehicle to LeasePlan, and lease it back.)
Important - Vehicles must be:
- no more than four years old at the commencement of the lease (and have travelled less than 100,000 kms); and
- be no older than seven years old (with no more than 200,000 km) at the end of the lease term.
LeasePlan will only finance the vehicle at its assessed market value. This may not be the asking price of the vehicle. The purchase price will be based on market value as assessed by LeasePlan.
If you wish to acquire a vehicle via a private purchase, sell and lease back your existing vehicle, or pay out an existing lease, LeasePlan may require additional information to determine a market valuation (sight unseen) so it must be accurate.
Note: If you source a quote from a dealer or private party on a second-hand vehicle, do not sign or commit to the purchase of the vehicle.
LeasePlan is one of the few lease providers to allow novated leasing of used cars. It must be noted that a processing fee applies. This fee is capitalised into the purchase price of the vehicle and amortised over the term of the lease. The processing fee covers costs associated with additional processes outside of LeasePlan's systems, which support the used vehicle lease.
- Verifying used vehicle pricing
- Establishing operating budgets for vehicle
- Facilitating payment to seller/financier; and
- Administering transfer of ownership.
Interested? Next steps
For further information on motor vehicle leasing, please visit https://www.leaseplan.com.au/nov-federation.