EV Self Managed Novated Leasing

xdivino on 20/01/2025 - 12:20

G'day,
Looking at the new Model Y Launch edition for a novated lease, my employer only has SGfleet as their approved provider but realistically i'm not seeing the benfit of some of these novated lease providers.

Realistically I would just be getting payroll to directly pay a lease provider and setting aside the balance of Tires/Electricity/Insurance/Rego in a monthly setup etc. if I go down a self managed route.

Has anyone done this?
sourcing my own finance/lease arrangement shouldn't proove to difficult with the competitive market atm and there's surely similar ways to pay for things and then claim them back later on.

My high level numbers are lease at $1k pm and $200 in running costs per month to cover the annual basis of Rego/Insurance/Charging and then building a balance for long term tyres etc.

with FBT exemption and the overall straight forward-ness to it now, wouldn't self managed make more sense?

Automotive Electric Vehicle Novated Lease

Comments

  • djkelly69 on 20/01/2025 - 12:28
    +4

    A lot of employers don't allow you to self-manage, you just have to go through their provider as everything is already setup on the payroll side. That is the first thing I would be checking on.

    • xdivino on 20/01/2025 - 12:29

      yeah figured this might be the biggest roadblock and have just asked my payroll about it - figured this might help others that have this option however as it seems extremely straight forward to self manage this if you can make it work via payroll.

    • xdivino on 20/01/2025 - 16:09
      +1

      Answer from Payroll - Nope we only do via SGfleet

      Ba-bow :(

  • holdenmg on 20/01/2025 - 12:38
    +1

    Have a look at:
    https://www.novatedleaseaustralia.com.au/self-managed-novate….

    and in particular:
    More questions about self-managed novated leases

    • xdivino on 20/01/2025 - 12:47

      Yep - saw this and led to this forum to ask if anyone's done.

      Essentially it's nearly the same now that the FBT exemption and other elements are gone from the complicated side of Novated leasing for EV's. the hardest part looks to be the setting up the lease and paperwork to the employer portion since this is the crux of the whole thing.

      Sorting finance, setting aside budget for Tyres/Rego/Insurance/Electricity doesn't seem to complex since usually doing this anyway.

      FBT was the killer before - calculating and setting up these items was the benefit of a company that would do it for the fee. Considering the audience here in Ozbargain if i can save the $29pm cost in Admin fee that's a Ozbargain deal right? - a little work for reward.

      • freefall101 on 20/01/2025 - 17:50

        I think you might have missed the details on how a self-managed lease works. You self manage the initial financing, you (and your company) don't manage the ongoing lease itself, that still goes to a third party company (who you'd pay an admin fee to). For your company it's exactly the same, they pay a fixed amount from your payroll to them and they do all the work for a fee.

        FBT was the killer before - calculating and setting up these items was the benefit of a company that would do it for the fee

        FBT isn't the complicated part (it's quite easy). Managing all the invoices, the contract and the tax implications of over/under payment for a payroll team who have no idea how to do that (and it's unlikely their software supports it) is the hard bit.

  • sumyungguy on 20/01/2025 - 13:10
    +1

    Are you working for an FBT-exempt employer? Ignore my irrelevant comment, you're accessing the EV exemption

  • Euphemistic on 20/01/2025 - 17:15
    +1

    Brilliant idea. Do it. Youll save a fortune.

  • CantonasKungFuKick on 22/01/2025 - 10:06

    What interest rate are sg saying for the launch Y?

    • xdivino on 22/01/2025 - 11:43
      +1

      it's a daily or floating rate
      ~8%
      it's not fixed or locked in till the lease starts etc. so could change between now and then

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