I Work for a Novated Lease / salary sacrifice company (10 Years) and a Licenced Financial Adviser. Ask Me Anything
Yes I have seen all the dodgy stuff that goes around and no I'm not promoting any business. Nothing to gain, just like to educate.
[AMA] I Work for a Novated Lease / salary sacrifice company (10 Years) and a Licenced Financial Adviser. Ask Me Anything
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Is it possible to make money off novated leases, investment-style?
For example, take out a lease on a vehicle, and then once the lease period expires, sell it second-hand for more than you paid over the period of the lease?
Not recommended as you usually get burnt.
The only way it's been done before is if the vehicle was purchased with a very large discount. E.g. Mitsubishi Triton you can get up to $10k fleet discount sometimes and when you sell with consideration everything that has been paid (1 year lease) you at times can make money
But no don't bother to get a novated lease for the purpose of making money.. it'll usually depreciate fast
Are there any cons to salary sacrificing mortgage repayments? Also, what should people look out for?
Yes forget about it if you work for a regular organisation there are no benefits.
If you work for a rebateable organisation like a Sporting club, union or school it can be considered but only worth it if you are on $107k salary
If you work for a charity, do it you can't lose unless you are on a low income like $20k then it's not worth it
Can you please explain the reason?
Main reason is you overall pay more to salary sacrifice the mortgage repayments with fringe benefits tax and fees consider vs just taking normal wages
Again… Depends on the employers tax concessions and your income to evaluate if it is worth it
What do you think of Comminsure for trauma/ Tod / life insurance?
If you need it get it. Generally all the same but you need to assess your needs.
Generally you already have life insurance if you have super unless you got rid of it
If you're rocking your own business do it(Not necessarily comminsure). Otherwise use your sick leave ;)
Interesting. something I have been wanting to know myself
with novated lease, are you allowed to find your own car? say I walk in to a dealer and i know which car i want (options, colour, etc).
for someone that earns say 100K + commissions - would that works for a car that say 60K
seems some NL covers cars, maintenance, petrol etc.
Yes it will work for you but you wouldnt get a good price if you walked in a dealer and priced a vehicle yourself and is a nobody
The NL provider would have far better bargain power and would have fleet discount. However they can be scum. You should work with the price on redbook.com.au and pay not much more than that.
Yes NL include all those running expenses
I've seen the other side. Further info on finding your own car.
Many dealers will service walk in lease customers the same as private, but with fleet pricing. A good sales manager will be able to give you a competitive price with fleet pricing (if applicable). By competitive pricing, I mean often as cheap or cheaper than using the lease company (as they are not charging for the lease company's finder fee). But this is purely up to the good will of the dealership.
If you mention which lease company you are using, you will often add their finders fee to your car. If a fleet manager or sales manager asks, it is because they need to know. Often it is in your best interest not to share this info unless asked and told a reason why (preferred dealer or something like that).
Some dealerships will kick you straight to the fleet manager. You will still get a test drive, but it will literally be, 'here are the keys, have fun'. You might like prefer that, but you will never be taught how to use most of the car's features. They might give you a better price, or just ask you to tell your lease company to use that dealership.
This doesn't apply to you, but retail drive away prices on budget cars are often cheaper than most, if not all, fleet levels.
Redbook shows cost excluding onroad costs for many non budget cars. Redbook price can be an excellent retail driveway price on most $60,000 cars as it is around 10% off in many states. However I would push for a bigger discount when financing by lease as some on-roads are not payable and other on-roads may be covered by your leasing company (you need to figure those out for yourself). 10% off is good, but not great, for most luxury cars.
If you buy your car though a leasing company you will often get no service at the dealership on pick up.
Charuzu's advice is good. Listen to them.
Don't forget you can always be a smartarse and go price match another dealer minus $300-$1000 which is probably what the NL would charge as a finder's fee
Ya fleet discount cars often no fixed price servicing. But then again I've seen logbook services cheaper than fix price servicing.
This partly explains the shxt experience I had with the fleet manager when picking up my car (or he could just be plain incompetent)
I was a walk-in and worked out a deal better than my company's NL could do. On pick up day, found the car was parked at the back of dealer's carpark, not washed and not preped. The fleet manager had no clue. Car had a foldable tow bar which is hidden from view and he thought it wasn't installed and promised to put one in at first service. Should have taken the tow bar off and sell it for parts.
Fleet managers need to focus on multi car deals to make target. They don't have time to do the retail delivery process or even know much about the cars they sell.
It is a poor experience for a private buyer, hence many dealerships are moving these sales to their retail departments where possible.
@This Guy: Yeah I had been dealing with their sales and sales manager right up until the delivery. Apparently the sales guy left a week before
@austrij: That is short sighted.
Your sales manager should have organised another sales person to do the delivery.
They need you to have an amazing experience so you tell all your friends and family that "Tom at Dick's Motors is the best! I love my new Harrymobile!" They won't buy, but their friends and family will (no one trusts a direct referral, but they always trust a friend of a friend's buying decision).
It is insane to see how interconnected car buyers are for a brand/location.
That's what I did. I also organised my trade-in. In both cases I got a better deal but both were "orphan" cars. Traded a 10yr old Golf Cabrio, bought a new Skoda Octavia manual sedan (which weren't selling)
I also had a colleague that needed some ready cash and "sold" his 1yr old SS Commodore ute to the lease company and put it on an NL back to himself.
IIRC, you can also NL used cars up to 5(??) yrs old
Hi, I am on 250k + super. Looking at packaging a $60k used BMW X5 for 3 year lease. Coming to $1900/month for 3 years and 25k balloon at the end. It includes all maint, car insurance, diesel , rego. I think 7% interest rate charged and a $40/month maint fee charged by lease company.
Few questions -
- Given my financials, is it worth it ?
- I am being asked the %split between business vs personal use. What difference does it make ?
TIA
Personally I wouldn't go near a X5 very expensive to maintain but base on your income , who cares haha. A set of disc brakes plus disc is like $2500. You could do it 100% pre tax with no post tax as you are on the highest income tax bracket. Same rate as the FBT rate.
Is it fully maintain or self maintain? I would stay away from fully as you are forced to pay what they tell you to pay e.g. servicing , insurance. While it could be a lot cheaper if you did self maintain. Pay who you want go with who you want and get reimbursed.
If you have choice of 2 providers. Get quotes from both. Illegal to only have one provider unless you work for government.
There are 2 car FBT methods . 99% of the time it is statutory formula because it doesn't matter if you drive it privately or for business, FBT works out at a set rate. But if you do a high amount of business travel then you pay less FBT using the operating expense method which most NL are reluctant to do (too much work). So that's probably why business vs personal was asked.
Personally I wouldn't go near a X5 very expensive to maintain
I thought you said all ongoing costs are pre-tax charged, so why would it matter if maintenance is, say; $2,000 / year? (regardless being on 200k or 100k income)??
Because the more you spend the more you need to salary sacrifice. You don't really load up your expenses to save tax you sacrifice what you need. Otherwise you'll end up having too many money in the account where in the end could end up tax as wages
100k and 200k are on different income tax brackets so it matters
$2000 a year a very low for X5
@Poor Ass: sorry please re-explain.
Example Scenario…..
Person A has a taxable income of 100K, so they pay tax around $30,000 per year.
At a high level, I thought throwing in (high) ongoing/operational car expenses such as maintenance at $2,000 is all pre-tax.
So my understanding is that the $2,000 is factored into the salary sacrifice which means it's reducing the person's overall Taxable income from 100K to 98K?@frostman: if on $100k you save 39c per dollar
if on $200k you save 47c per dollarhigher you earn higher tax you save
yes if it is $2000 it reduces your taxable income by $2000
there is also a post-tax component that funds your lease and running expenses so it won't be all pre-tax unless you work for one of the tax concession employers
It's 100% business use. For sure.
If 100% business then don't get a novated lease
If you got the cash just pay for the car outright and depreciate it on your tax return and claim it on your tax return
NL really for regular non 100% business use drivers
Would you say a finance degree is a good option ?. What are the career oportunities atm ?. What path would you recommend for someone studying business ?
Well it's really all on Google but diploma of financial planning is pretty much the sterling stone you need in regards to study. Then you need working experience.
I have a degree in accounting and fin plan. Accounting more like counting the money fin plan you are making the money.
Look what jobs interest you in seek.. but this industry already too many.
To be honest I would of become a trady if I could go back. The endless studying is not worth it.
2nd Charuzu.
A far cheaper option would be to work at a car dealership as a trainee Finance Manager. They want you qualified quick so they can make money off you, but you still need to push to get your qualifications for them to respect you enough to invest the time and money needed. You will also get your qualifications with their financiers as well (normally at least St George), which can be valuable for certain broker careers.
This will set you up 2.5 years earlier than going to uni, assuming you can find a job in field after graduating. You will be paid from day one, but after six months you should be making decent (and growing) money. You also wont earn a $40k debt.
If you want to try to take this path, ring around to several dealerships until you book an interview. Don't be disheartened if they don't hire you. They are looking for very specific characteristics. Try a few others or try a different path.
The answer to almost any question a dealership asks in interview is either, 'I want to buy a house and pay it off quickly,' or 'I don't care about [working weekends/long hours/my soul], I want money.'
Another path is Trainee Mortgage Broker at a bank/credit union, but an easier path would be car Business Manager then move across after six months and accreditation straight to Mortgage Broker. Money with banks/unions are often lower but hours are better.
I would expect it to be a slog fest going straight into a full finance sales role like at many smaller finance companies, however the pay can be exceptional. A degree will mean nothing to them. Good ones hire on personality and/or proven sales only.
If you want to be an actuary a degree is a must, but from what I hear most graduates burn out in the first year to year and a half. Money is reasonable not as great as anything already listed.
Accounting needs a degree then often chartership (further professional development) for often not that much more than actuary work. If you aren't the best with people (or can't get one of the earlier jobs listed), this is often a good choice.
Many of the stupidly high paying finance roles are boys clubs. If you don't know of these roles you probably don't know the right people to get those jobs.
There are plenty of other roles in finance. These are the careers my friends have choosen. I am not an expert by any means.
The industry is full and competition is high. Showing a want to work, or 'hunger' is a huge advantage.
Yep corrupt people
Well they want to go into finance…
Hello there,
I am looking at options to upgrade currently from my 2003 Fairmont that I have had for about 5 years now. I'm on roughly 60k after tax and I was wondering what the benefits would be on the lease vs the personal loan options.
I am looking at a hilux
Loan = pay everything in after tax
NL = pay using before tax and after tax for lease payments and running expenses
You just need to get a quote from a NL provider of the costs and compare loan + running expenses for the term
Keen to contact you via email or PM to discuss options for my situation…
Sure.. complex?
Oh but you don't pay tax "cashie"
Alright let me know
Thank you for the AMA.
I am also interested to be a Fin Planner but hit the rock when the requirement is work exp with existing AFSL licensee.
How did you overcome this issue given I have never worked in Fin Planner before.
For clarity, assume I have RG146 accreditation.
Well you can be a financial planner once the AFSL licencee makes you an authorised representative even when you don't have RG146. It's so loose.
But to get your TPB licence you need to have experience and part of a financial planning group e.g FPA and a voting member
So if you want to get accredited then you need to start working in a feild of finance
Thank you.
Do you think the incoming Labor Gov't will 'deal' with novated leases?
They tried to get rid of it back in the last election to raise funds but good thing they didn't get in
No they sign a letter saying they will leave it alone but hey…can you trust trust pollys
If you're well into the top tax bracket is there any real point in leasing a car worth less than $25k rather than buying one?
Yes
Rich get richer by salary sacrificing as much as possible as long as it is legit
Just sharing my experience, done a year sell and lease back before.
Basically you sell your car you own to them, get the money, then financing your owned car with them like normal NL. After that all your savings are on the running costs, like fuel, rego, insurance, servicing, tires, etc. So the more you need to spend there the more you save.
But the catch is you need to use in order to save. Say you don't drive a lot or not thinking to buy any comprehensive insurance, your running cost is low, then NL will not save you any money, you may end up paying more than not doing NL at all.
Because NL has a lot of overheads, like admin cost, exceptionally high loan interest rates and your own contribution. Yes you start saving the first dollar you spend on your car, but your saving has to be breakeven with the overhead cost in order to be on positive side at the end.
Say for example the overhead is $3000, you need to save $3000 with your pre tax salary (by spending $10000 with 30% tax) to breakeven, only then you actually start to gain. In my case, I didn't drive a lot, only 10000km a year, so fuel cost was only $1500, I need to spend another few thousands on my car or drive triple kms in order not to lose money. So really, NL is not for everyone.
Agreed. Crap providers don't care about your personal circumstances nor do they have to
All they want to do is write the deal and f off
Cheers for this. My '08 i30 has only just clocked 100000 km's recently. I'll stick with plain and simple.
What makes you choose one finance company over the other e.g macquarie vs st george. What are the top 5 most important things for you from a lender?
If it is a reputable lender then choose whoever is cheapest
MACQ will lend to anyone under the sun criteria more relaxed but peanlities are brutal
STG probably oldest lender, email communication excellent
NAB they have no idea how to make a statement
BOQ cheap but depends on how much the NL loads it up on commission. Far as I know they haven't introduce late fees to date just friendly reminders
Toyota finance probably cheapest. The get there money from Japan which interest rate is 0%. Not sure about service
But you are restricted to who your NL provider uses in finances
NL provider service is more important than lender
Problem with NL is the high interest rate and the required residual value at the end of the lease is usually worth more than the value of the vehicle. Really need to do the sums thoroughly.
Agreed . Main advantage is possible tax savings vs other methods of buying
Don't expect to beat the residual if it's a non common car
Some people at work have made a pretty comprehensive spreadsheet which show that NL is advantageous only if you use your car a lot say more than 12-15k km per year. For the average user this is same as cash purchase. One of the people got a quote from sgfleet and based on the spreadsheet he saves like $45 overall as compared to a cash purchase!!!
A saving is still a saving but depends on person to person and how tight they are lol
You can drive less and still be better off. Really need to factor everything in and no one's circumstance is the same.
I am currently working for a novated lease company in a outbound lead sales role. I am looking to progress myself as a leasing consultant. What do a sales manager look at when employing new staff? I have previous work for a car sales industry for 7 years. Does that help?
There's some tricky word play is the leasing consultant you are referring to got anything to do with sales or just pure managing of NLs?
Sales experience is a bit important but basically if you are talking about a sales leasing consultant not a administrive leasing consultant. Then you just need to meet your quotas or you get the boot.
Thanks been looking into NV for some time.
What brand cars or make models seem to be the best at attracting good fleet discounts and at the same time keeps a good value later on if you were to sell?
I've been trying to sell NL to my employer but payroll says there's too much costs, but from my understanding it's all administrative work, which is also tax deductible for the business for managing such affairs.
I keep reading mixed stories about how the FBT portion is calculated, is it calculated at a rate of 20% per year on the value of the vehicle that you purchased at the time, does the value change each financial year, or it's always the same value from the initial purchase? I've also read somewhere the FBT rate was 49%, seems conflicting.
I have also read that people try to balance it so that some of the costs of the vehicle, e.g. car servicing is done with post-tax which can help to reduce the FBT, is this true?
Also what exactly is the governments motivation for allowing NL, especially the fact that people can use it personally 100%
Good discount would be like Mitsubishi (resale ok if you don't have heaps of KMs), Korean cars (resale not that good).
Good value at end if lease Mazda especially CX5s.
Your employer just lazy, don't want to do extra work and don't want to learn which I can understand in a way. But it is a serious incentive for employee retention.
FBT liability rate is 47% when you don't contribute enough post-tax contributions. You contribute pretax (salary sacrifice) post-tax(after tax pay) to fund the lease and running expenses. Post-tax is 20% of the base value of the vehicle which is purchase price minus statutory charges like rego, CTP and stamp duty. Post tax doesn't change until you reach 4 full FBT years with the same employer and gets revalued down by 1/3 or you change to a new employer you never work with then it is revalued to the market value (bonus) provided they take on the novation.
Running expenses that you pay that you don't seek a reimbursement for can be used as ad hoc post contribution. This usually can happen in the first year when usually everyone has a post tax shortfall due to when the first lot of funds were sent from payroll
Well NL is based on the statutory formula 20% which means as long as there is 20% post tax contributed it satisfies the criteria and they can salary package the rest
Hope this helps mate
Hi,
Curious on what your thoughts are in general for PI, TPD and Life Insurance through super vs dedicated insurance outside of super.
Most times buying inside super is better due to tax savings involved. Also it feels like you have better cash flow because it's not paid from your after tax income but from super guarantee which is also investing for you inside super
Go with inside super it'll be easier and you won't forget to pay it
I'm going through super, for some reason it seems massively cheaper aswell
Well done mate
Wow, normal ozbargain lurker but going through this process right now, cheers for the AMA charuzu!
I would like to ask if there is any benefit in going for a NL if I do significant KMs/year for business with private car ie I would rather drive private car to other offices and sites for business related stuff, estimating around 60% via logbook method.
Current situation: $160k bought a $67k car new going through financing options now. Under normal consumer loan, would claiming 60% back on the interest, depreciation, running costs, fuel etc be more worthwhile than a NL? Trying to clarify cos the FBT @ 20% smashes any benefits from the GST offset ($5.5k max LCT Levy).
Can PM for further details however I think fellow ozbargainers may also be interested in this position! especially with NL agents trying to dodge questions re FBT post tax contributions and car dealers trying to push for consumer finance!
To be honest I can't say because the situation is specific and how the NL charges are specific
But how you will know is if the NL values your business. You will tell them exactly what you wrote above and ask them to compare side by side NL vs Consumer loan 60% business use using a simple to understand table and how (if possible) can benefit you by taking out a NL. If they can explain it then you will get your answers
We do it where we work and if not feesiable we tell it so even if we lose a deal. Note if the NL person you are taking to is sales they usually don't have any idea how to calculate this. So hopefully you can get someone smart and not trying to sell you a deal that might disadvantage you
All the best
Are you currently an authorised representative?
Who's your licensee or last licensee?
My licensee is owned by one of the Big 4. It's currently very tough compliance wise at the moment.
I'm considering leaving the adviser role, still want t9 be in the industry but not in an advising role.
Yes authorised representative
We actually have our own AFSL back in 2013 the process was really hard but we got it at the end
So do you provide normal financial advice or only advice relating to NLs?
I can provide an experienced opinion based on my skill set
Hello, I salary sacrificed my car. I’m in the middle of a crises I might need to leave work for a while. What does this mean for my payments? They are currently deducted through my employer.
It would mean when your account or employer runs out of money, you would need to pay for the lease payments yourself to avoid late fees. You would also have a post-tax shortfall for the period you are not getting paid which you can use the lease payments you made to offset them or contribute cash to your account or employer or combination of both.
This is the biggest problem with novated leases, if your employer terminates you, or you resign 1 year into a 5 year lease, you're up shit creek.
I guess no different if you lose your job and you are face to pay the repayments like a loan
But you can re-novate and transfer the lease to the new employer should they do salary sacrificing. That would be up to the employer though.
Yes it sucks when you can't salary packaging the NL. Is a risk indeed.
@Skramit: yes you can but most likely the value of the car sold cannot pay off the lease and you will be out of pocket for the difference.
it's called a lease but really it's more like a salary sacrificiable hire to purchase
you might as well pay the lease monthly until it matures to improve cash flow
Wondering about a new car that's been already paid for in cash? NV company said I can take a lease on that car, numbers and logic didn't make sense.
redbook value $50K, private use, less than 5000km per year.
so what you are referring to is a sale lease back… you own the lease outright and you selling it to the financier and leasing it back from them
they will book the car on the price they feel right and pay you
then you lease it from them
yes quotes need to be explain well… something that a lot of providers don't do well
own the car outright i mean
the negative balance is due to the NL provider not budgeting enough running expenses… they could of done this make the quote more attractive because it makes it look it will cost you less. it's very scummy and makes competitions quote look bad. You just need to increase your pre-tax or salary sacrifice and then you could get the tax savings back so your account won't be in the red.
I forgot to add that the budget doesn't include expected repairs like hitting a roo… so you would need to salary sacrifice more if you want to get reimbursed and get the tax savings
regard to the high km travel… most likely the car market value would be far less the residual due to depreciation
but if you are looking to drive heaps and get peace of mind… go with the new car that has unlimited kms and 5 year / 7 year warranty… also take out life time new for old comprehensive insurance if you don't mind paying a bit more for insurance.
If you are after maximum cash flow go 5 year lease and re-lease it year by year after that.
If you are after owning the car as fast as possible.. go 1 year lease and 1 year and 1 year and keep going until you can't re-lease it anymoreUsed cars beyond manufacturers warranty can have issues occur so if you can afford new do that.
Thanks. Wish they made it this clear when something did happen.
sorry about your experience
most NL provide don't care just write that deal and f off… customer service is quite poor especially with the well known NL providers
@Charuzu Hi, do you know who is novated lease provider for Woolworths.
Sorry I do not. Check with your HR or payroll. They would know.
I'm looking at leasing a Toyota Kluger either GXL or Grande. Work for NSW Government agency with 100k salary pretax. What would be the best deal for me and what kind of expenses should I expect per fortnight/monthly?
too many variables… you really need a quote from NL provider. don't be obligated to proceed until you understand it.
Hey charuzu, I was looking into getting a financial advisor (not a millionaire, would like to become one) and was talking to a crew in Sydney (I'm in Melbourne) but realised they only have diplomas. With new regulation coming in requiring degrees, it seems to me a degree is fairly important industry standard-wise… however I did a commerce degree and I don't believe it actually is important.
Thoughts?
ya pretty strict. my accounting degree was useless
I ended up doing dip of fin plan but at the same time got 10 years full experience under my belt and a voting member of the FPA. That's how you can get your Registered Tax financial Adviser under the TPB
to be honest you can still be called an adviser if you are an authorise rep under a AFSL. but better get someone that they have used before.
there are a lot of people trying to sell you sh*t
Whats the best length for a premium car that you know is gonna cost a fortune after warranty for tax? Say a Alfa Romeo Giulia
if you really want it and have the salary to sacrifice… 1 year lease and then followed by few more 1 year leases
Not sure if you could generalise, but how do say 3 consecutive 1 year leases compare to a 3 year lease? Assuming cash flow isn't an issue.
1x1x1 would be if you want to own your car quickly. note some NL providers don't let you re-lease after it reaches a certain amount e.g $10k or under or they may say the car is too old
So let's say if it was a 30k car. Residual end of year 1 will be 19.5k, year 2 10.72k, year 3 $5.9k. the monthly lease payment should be less each year you re-lease too improving take home pay.
3 year lease the residual would be $13.5k but you may be able to re-lease it again 1 year $7.4k and maybe another 1 $4k if the NL provider allows.
So it is really depends on what you want to achieve and what the NL providers age and value of car criteria is
I was looking at a NL for a ute in 2008 (90% private use) as it was FBT (?) exempt if the payload of the ute was over (can't remember exactly, lets say) 1000kg. The single source NL company (government worker) said FBT exemption was correct but it wasn't possible through them and I had to add bullbars, towbars and other accessories to bring the vehicle under 1000kg payload.
Was the NL company just being inflexible?
Would I have been able to get FBT exempt with another provider or is it just "no deal"?
Sorry for vague question figures / terminology. It was 10+ years back. I finished up NL a car but never felt like I'd saved much. The main party to benefit appeared to be McMillan Shakespeare and Maquarie Leasing.
few things a car is classified by the ATO as payload under 1 tonne and cannot carry more than 8 passengers.
So the bull bar tow bar sometimes could weigh the vehicle down so it cannot carry more than 1 tonne. yes we do that all the time.
the ute would only be FBT exempt if it was used to travel to home or work and infrequent other private use but has to qualify and you need to sign a declaration (100% pre-tax very good deal but restricted travel). otherwise you pay the regular FBT or post-tax + pre-tax like everyone else.
yes the NL provider just lazy and wasn't professional
ya McMillan are scum… financier they are usually all the same
1)
Can you get a novated lease on a car without all the addons like fuel, insurance, maintenance etc included in the package?The few quotes ive done always showed the novated lease came out behind a conventional loan because of the bulldust allowances they have for the addons like $2500/year for insurance, $2000 for tyres, etc.
2)
Do you still have to do minimum km per year for a novated lease to be worth while? I only drive low KMs of say 5000/year.I used the NLs provider the first few years and it was really cheap (buying power?).
One FY I piled 50% more into my lease as I had a large CGT bill from a share sale. In the new FY I cut back the payments and drew down on the "bank".
I bought my own tyres and used my own CC for fuel (and got the loyalty points). Anything I spent outside the lease I had to do paperwork to claim back. Talked it through with the lease company and they confirmed the outcome was the same but more paperwork for me.
I also got my windows tinted, got a remap and a few other things I didn't expect would be OK.
yes you can but if you are paying for them yourself you might as well include them as they are tax free anyway. If you are talking about a fully maintain lease yes you pay what they tell you to pay. If it is a self maintain you may use who you want and get your expenses done where you want.
no minimum travel they removed that many years ago. everyone is on flat rate 20% post-tax of the vehicle base value now/
But what happens if they allow $2500 for insurance but you pay $800. What happens to the $1700 difference?
it's like a bank account, contributions goes in and you use what you need and whatever you don't use at the end of the lease usually goes back to your payroll to be processed as wages. On the other hand if you drive too much and blow your budget, then NL provide should contact you and request an increase of salary sacrifice contributions
Sometimes the NL provider force you to use their insurance and service places etc etc… stay away from those kind of border line illegal
Yeah couple of quotes I saw said the insurance was “included” with their preferred provider. No thanks!!!
@FoxJump: Correct