How does a novated lease work?

Firstly, you need to select the car you’d like to buy. Our team can help you with this process, and we have a specialist vehicle procurement manager who is able to not only negotiate great discounts – at no cost to you, but can also provide brand neutral advice – ensuring you get the best information to make your decision. Additionally, we have an online calculator that you can use at any time to get ballpark ideas on costs and tax savings.

With car selected, our team will build your payroll deduction budget. This will include amounts for all running costs of the vehicle like, your finance payments, fuel, servicing, tyres, registration, and insurances. At this point you will receive a vehicle quotation outlining a scheduled estimate of costs and tax savings based on your vehicle, salary, and the distance you plan to drive the vehicle each year. We can also provide pay by the month options for vehicle extended warranty and loan protection insurances that can be added to your plan of deductions.

A finance application and approval process will need to be completed to ensure your ability to manage your finance repayments, and needs to occur prior to Prosperity ordering your new car. This will require disclosure from you in relation to your income, assets, liabilities and household living expenses.  We feel that transparency in finance contracts is very important, and as such our finance contract documents include not only the details of the amount being borrowed, and the repayment amounts, but they also include the final customer interest rate and show the value of the brokerage payment being made to Prosperity. 

Once you receive your new car, Prosperity advise your employer of the agreed payroll deductions and you settle in to enjoying your new car while knowing you are saving tax at the same time. We provide you with a fuel and fleet card, with optional roadside assistance, that can be used for fuel at over 90% of service stations Australia wide.  For any expenses that need reimbursement, by using our Prosperity Salary Packaging App to access our Driver portal, you can photograph your tax invoices and proof of payment and upload your claim for automated reimbursement – typically within 1 business day! Additionally, you can keep track of your claims and account balance via the same easy method.

When you approach the end of your lease period, which you can decide between 1 and 5 years, our team will reach out to discuss the options available to you. These include, trading your current vehicle and entering into a new lease, refinancing your existing vehicle, or paying out your residual. Prosperity can trade or sell your vehicle as well as help you buy your new car. Our approach means that at all stages you’ll be dealing one on one with our team members to ensure we understand your needs and that you remain involved throughout the process. 

Give us a call if you’d like to speak with one of our team about salary packaging a car for yourself, or if you’d like to find out more about offering this benefit to your staff. We’re here to help.